Lawmakers urge support for Rhode Island offshore wind farm

August 3, 2010

Rhode Island lawmakers have written to the state’s Public Utilities Commission to express their support for a power purchase agreement proposed for the Block Island offshore wind farm.

State Governor Donald L Carcieri, House Speaker Gordon D Fox and Senate President M Teresa Paiva-Weed sent a letter backing the deal between utility National Grid and offshore wind developer Deepwater Wind.

The agreement is currently being reviewed by the Commission, based on a starting price of 23.5 cents per kilowatt-hour for power generated by the 20MW wind project, rising at 3.5% a year from 2013.

The Commission had previously rejected a deal proposed with a starting price set at 24.4 cents per kilowatt-hour, stating it to be “commercially unreasonable”.

This project holds the key for Rhode Island to take and maintain the lead in the offshore wind” - Governor Donald L Carcieri

A new law was required to give the $205 million offshore wind project a second chance (see this BrighterEnergy.org story), but a new contract still requires the approval of the Public Utilities Commission.

The Governor and his colleagues urged the Commission to support the new deal, describing the Block Island project as a “unique chance” for the state to lead a new US offshore wind industry.

“With its ample offshore wind resources, an excellent deepwater port at Quonset, and the expertise associated with the CRMC’s Special Area Management Plan (“SAMP”) for the Ocean Zone, Rhode Island is well-positioned to develop offshore wind and its associated industries,” the letter stated.

New Jersey firm Deepwater Wind wants to build eight turbines at a site about three miles south of Block Island.

“Critical”

The lawmakers’ letter said PUC approval of the current PPA proposal was “critical” to showing that Rhode Island is “serious about the creation of an off-shore wind manufacturing and support hub for the region”.

The Governor, Speaker and Senate President want the Commission to consider the 20-year power purchase agreement on its own specific nature, rather than comparing it to other renewable energy projects, or to predictions of future electricity prices.

Their reasoning is that the demonstration-scale project would open the door to much bigger, more cost effective offshore wind developments.

Citing a study from the Rhode Island Economic Development Corporation, the letter claimed that overall, the Block Island project would represent an economic benefit of about $100 million, while a larger project would represent an overall benefit of $900 million.

Governor Carcieri said: “This project holds the key for Rhode Island to take and maintain the lead in the offshore wind, renewable energy industry. We cannot afford to lose this opportunity to take control of our economic destiny.”

President of the Senate M. Teresa Paiva Weed said: “Tremendous momentum has been gathering around wind power development in Rhode Island. This project allows our state to seize upon a tremendous opportunity to bring jobs and economic development to the state.”

Environmental groups ordinarily in favor of offshore wind projects have opposed Rhode Island lawmakers’ attempts to reverse the previous Public Utilities Commission ruling against the Block Island wind PPA (see this BrighterEnergy.org story).