Offshore Wind Wire

By Peter Brennan

In the latest turn of events surrounding the controversial Block Island wind project in Rhode Island, the state legislature has dropped a plan to bypass the state Public Utilities Commission’s review process for power purchase agreements.  The idea had come under widespread criticism and lawmakers this week removed language from a new piece of legislation that would have effectively neutralized the commission’s review authority.

In March, the PUC rejected a PPA for the Block Island wind farm – between Deepwater Wind and National Grid – over concerns that it was too expensive and not commercially reasonable. In response, legislative leaders proposed Senate Bill 2819, which would have removed the review authority of the PUC and given it to a board made up of four governor-appointed agency heads.

The Block Island project, a demonstration project consisting of 8 wind turbines roughly 3 miles from the coast, has received the consistent and enthusiastic backing of Governor Donald Carcieri and other top political leaders in Rhode Island. Even before the PPA was rejected by the PUC, however, it drew criticism from state business leaders and conservative lawmakers for its high costs and minimal positive impacts on the economy.

On Monday, the drafters of Senate Bill 2819 capitulated to criticism to remove the PUC from the review process and amended the bill to replace the four agency heads with the PUC. However, the “Sub-A” version of the bill, as it is now called, requires the PUC to expand the scope of its review to allow for consideration of the state’s efforts to grow a renewable energy industry. Additionally, the PUC must return its decision on the modified PPA within 45 days of submission.

Attorney General and gubernatorial candidate Patrick C. Lynch, attacked the political maneuvering and issued a statement saying the new bill would make the “PUC Deepwater’s rubber stamp for a pre-rigged outcome that will be disastrous for Rhode Island ratepayers and businesses, costing them nearly $400 million above the market price of electricity over the next two decades.”