Massachusetts approves Cape Wind’s power agreement with NSTAR

The Massachusetts Department of Public Utilities (DPU) has approved the15-year Power Purchase Agreement (PPA) of Cape Wind offshore wind farm with NSTAR.

Under the agreement, NSTAR, a unit of Northeast Utilities, will procure 27.5% of Cape Wind’s power.

Previously in December 2011, the Massachusetts Supreme Judicial Court upheld the DPU’s approval of Cape Wind’s PPA with National Grid for 50% of its power.

Cape Wind President Jim Gordon said that the approval helps propel Massachusetts as the US leader in offshore wind power, promoting a new industry that will create jobs, increase energy independence and promote a cleaner and healthier environment.

"With this decision, Massachusetts electric consumers have secured an abundant, inexhaustible, and clean energy resource that provides price stability and avoids all of the external costs of fossil fuels.

"Finally, our region will no longer be at the end of the energy pipeline, by harnessing an endless supply of offshore wind power, we will be producing homegrown and clean energy right here," added Gordon.

Cape Wind is a 420MW wind farm in federal water off Cape Cod, where construction is expected to begin in 2013.