CLF Statement on Rhode Island Wind Contract

CONTACT: Jerry Elmer, (401) 351-1102 JElmer@clf.org

In response to the filing today with the Public Utilities Commission (PUC) of a signed long-term contract for wind energy, the Conservation Law Foundation (CLF), today issued the following statement.

“This is an important step forward for renewable energy,” said Jerry Elmer, a CLF Staff Attorney.  “Renewable energy is absolutely essential for addressing the problem of climate change.  Long-term contracts for renewable energy not only support the financing of clean energy projects but also promote price predictability for Rhode Island rate-payers.  This is the first tangible result of the new Long-Term Contracting statute that Governor Carcieri signed into law on June 26.  CLF worked long and hard for passage of this law and we believe in its or potential to facilitate meaningful and commercially reasonable renewable energy projects in RI.”

Background

The Power Purchase Agreement filed today in the PUC is a result of a new renewable energy law enacted by the General Assembly earlier this year.  If the new law is fully implemented, Rhode Island would eventually obtain fully 25% of its electricity from renewable energy in the form of long-term contracts.  This would be the highest level in the country.

Today’s filing of a signed Power Purchase Agreement follows several failed attempts at agreement between the utility National Grid and the developer Deepwater Wind.  On October 15 and again on November 18, unsigned contracts for wind power were filed by Grid in the PUC when the parties were unable to reach agreement about price and other terms.

Long-term contracts are especially important to renewable energy developers because they permit the developers to obtain necessary funding for their projects.  Rhode Island’s renewable energy law passed in 2004 did not specify whether long-term contracts were required; the 2009 statute had the effect of strengthening this part of the previous statute.

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The Conservation Law Foundation (www.clf.org) works to solve the most significant environmental challenges facing New England.  CLF’s advocates use law, economics and science to create innovative strategies to conserve natural resources, protect public health and promote vital communities in our region.  Founded in 1966, CLF is a nonprofit, member-supported organization with offices in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.