National Grid again rejects contract with Deepwater Wind

Published Nov. 18, 2009 at 10:00 p.m.

PROVIDENCE, R.I. -- Despite pressure from the governor, National Grid has again rejected a proposal to buy clean power from a developer proposing to build a $200-million wind farm off Block Island.

In a letter filed late Wednesday afternoon with state regulators, Rhode Island's largest electric utility said it would not agree to the latest offer from Deepwater Wind for power from the 8-turbine wind farm because the price is still too high. It is the second time National Grid has turned down the New Jersey-based company's overtures.

National Grid's decision follows several weeks of talks between the two sides and entreaties from Governor Carcieri, who believes offshore wind development would stabilize energy prices and provide hundreds of jobs in the state.

Although the filing represents a setback for Deepwater and its plans to build the first offshore wind farm in the country, it does not mean an agreement will not be reached eventually. There is still time for the two sides to find common ground. The state Public Utilities Commission has until Jan. 31 to rule on a contract. In the meantime, the agency can order arbitration.

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