NStar’s Cape Wind pact pays $940 million over market

Posted March 30, 2012, at 10:05 p.m.

BOSTON — The Massachusetts utility NStar has agreed to buy power from the proposed offshore Cape Wind farm for more than double what conventional energy is projected to cost during the length of the 15-year deal.

The contract filed with state regulators Friday totals about $1.6 billion, assuming Congress renews certain tax credits. The contract says that’s $940 million above the market price of electricity during that period.

NStar estimates the deal will add $1 to the average customer’s bill.

Critics say Cape Wind isn’t worth the cost, especially since cheaper renewables are available. But NStar says a diverse mix of renewable power will be needed to meet state mandates.

Cape Wind developers also say the project is worth the cost because it means local jobs, cleaner air, and other benefits.

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