State refuses to renegotiate offshore wind energy agreements, gives developers a mid-week deadline

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State refuses to renegotiate offshore wind energy agreements, gives developers a mid-week deadline
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The Department of Public Utilities told wind developers they have three days to decide if they'll move forward with their offshore wind projects under the contract terms they already agreed to or if they'll request to cancel these projects.

Commonwealth Wind and Mayflower Wind each have until the middle of this week to tell the Department of Public Utilities whether they will move forward with their latest offshore wind projects under the contract terms they have already agreed to or ask state regulators to no longer consider those essential agreements.

"[R]esidents and businesses that financially support these contracts deserve certainty whether the Projects, if approved by the Department, will deliver consistent with the PPAs Commonwealth Wind and Mayflower Wind executed after a competitive solicitation," the DPU order signed by Chairman Matt Nelson said, referring to electric ratepayers.

The developer's motion came in the midst of DPU's regulatory process, which involves the filing of briefs from the developers, utilities, and other state entities. The Commonwealth Wind request came towards the end of what is essentially DPU's information gathering phase, and the regulators appeared peeved Friday that Commonwealth Wind had waited so long to formally notify the state of potentially fatal changes to the project's outlook.

DPU also alluded to potential penalties for violating its procedural regulations that require a company like Commonwealth Wind to"seasonably amend" materials submitted to the agency if information in them has changed.

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