Tuesday, July 27, 2010

Canadians challenge Deepwater Wind in Rhode Island

A Canadian company that says it can provide Rhode Island with renewable power at a cheaper price than New Jersey-based Deepwater Wind is urging state regulators to stop their review of a long-term contract involving the offshore-wind developer, the Providence Journal reports today.

TransCanada Power has filed a motion to dismiss a case before the state Public Utilities Commission for a power-purchase agreement between National Grid, Rhode Island’s main electric utility, and Deepwater, the New Jersey company proposing an eight-turbine wind farm in waters off Block Island. The PUC will hold a hearing on the motion Tuesday morning.
TransCanada argues that the Rhode Island law governing renewable-power contracts violates the Commerce Clause in the U.S. Constitution because it favors in-state projects. The law, enacted a year ago, discriminates against out-of-state energy producers and thereby restricts interstate commerce, says TransCanada.
See the full story: Deepwater deal opposed by rival firm

Deepwater Wind, which is based in Hoboken, NJ, has a 20-year agreement to sell to National Grid up to 28 megawatts of electricity to be generated by the 8 turbines it plans to install off Block Island. It also plans to build the larger-scale 106-turbine Rhode Island Sound Wind Farm in federal waters about 15 miles from nearest landfall, for which it will need to execute a separate power purchase agreement.

Deepwater also is partnering with PSEG Renewable Generation on a joint venture, Garden State Offshore Energy, a proposed 350 megawatt wind farm in New Jersey waters some 20 miles east of Avalon. 

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