Falmouth Offshore Wind HCA Now A Risky Contract

The Falmouth "host community agreement" is now a high-risk contract.

2016, Massachusetts produced an "Act to Promote Energy Diversity," for offshore wind.

2018, Massachusetts enacted an "Act to Advance Clean Energy," to solicit offshore wind energy.

2022, Massachusetts signed into law an "Act Driving Climate Policy Forward," to encourage more offshore wind.

As a result of six years of legislation, the Massachusetts Department of Public Utilities in 2022 approved two large offshore wind projects one of which plans to route offshore cables through Falmouth.

The offshore wind companies in 2022 had agreed to PPAs, Power Purchase Agreements in which MassDPU officials expected the projects would reduce electric bills by one-tenth of a percent. The Falmouth offshore wind company came in at $77.00 per megawatt hour.

Recently the Falmouth-associated offshore wind company announced it is backing out of signed contracts because it needs more money. The Massachusetts state goal is to reach net zero emissions by 2050 in which case the state is allowing the company to rebid their contracts next year. In other words, the state is going to raise your electric bill to achieve a renewable energy goal, there are no savings.

The town of Falmouth has been in negotiations with offshore wind since 2019 for an HCA, Host Community Agreement, which was supposed to provide resources for allowing the construction of underground cables and a six-acre high voltage substation. The payments would be paid on a yearly basis for twenty years.

The offshore wind company is a limited liability company, LLC, which protects its owners from personal responsibility for debts or liabilities.

Massachusetts legislators and the executive branch after six years of legislation have set a precedent with offshore wind contracts. If the wind companies decide to walk away from contracts they can.

If the offshore wind company finds the Falmouth community host agreement too expensive they could simply walk away. The courts would be faced with the Massachusetts renewable energy legislative mandate vs the Falmouth community host agreement. The Massachusetts climate goals would take precedence over a local host community agreement.

Note#

The town of Falmouth lost almost all eleven legal actions over the two town-owned wind turbines. The state never helped with studies, legal fees, or removal costs.

In 2009 Massachusetts had a land-based wind goal of 2000 megawatts by the year 2020. The town of Falmouth took part in the program erecting two commercial wind turbines removed in 2022.

The Massachusetts land-based wind goal only achieved 110 megawatts of wind power by 2023.