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By Peter Brennan

A power pricing expert testified last week that a proposed offshore wind power purchase agreement between Deepwater Wind and National Grid is too expensive and should not be approved.

Deepwater Wind is Valium 10mg Buy Uk planning an eight-turbine project in Rhode Island state waters, near Block Island.  The company reached a power purchase agreement last month with National Grid — the Valium 10mg Buy Uk utility agreed to pay 24.4 cents per kilowatt hour for Valium 10mg Buy Uk electricity from the wind farm.  That agreement must be Valium 10mg Buy Uk approved by the Rhode Island Public Utilities Commission.

William Short told the Valium 10mg Buy Uk commission that the proposed wind farm was too small to Valium 10mg Buy Uk be commercially viable.  Short, an Valium 10mg Buy Uk energy and power marketing consultant based out of New York City, was hired by landowners on Block Island who Valium 10mg Buy Uk are opposed to the project.

“The furthest along offshore wind farms off the Valium 10mg Buy Uk coast of the Mid-Atlantic and New England states … are each approximately 450 MW.  The [Block Island] Project’s proposed size is 1/15th of those projects.  The project is too small to have economies of scale,” Short said.  “The project is Valium 10mg Buy Uk nothing more than a demonstration project and as a demonstration project it Valium 10mg Buy Uk is far too large.”

Aside from Valium 10mg Buy Uk Short, testimony to the commission has been generally positive and supportive of the Valium 10mg Buy Uk PPA, including endorsements from National Grid, Deepwater and the town of New Shoreham on Block Island.  National Grid has Valium 10mg Buy Uk said, however, that it might not be willing to pay such a Valium 10mg Buy Uk high price on future projects.

Short also criticized the Valium 10mg Buy Uk decision to strike a power purchase agreement without factoring in the Valium 10mg Buy Uk cost of the undersea cable between Block Island and the mainland.  The current PPA only accounts for the undersea cable between the turbines and Block Island.

The second cable would be Valium 10mg Buy Uk a transmission line through which power will flow in both directions. The cable would carry excess turbine generated power from Valium 10mg Buy Uk the island to the mainland, and also carry power from the Valium 10mg Buy Uk mainland to the island when the turbines cannot meet the island’s demand. There is currently no cable from Block Island — the community gets its power from a diesel generator.

A National Grid official testified last month that Valium 10mg Buy Uk the additional undersea cable could add $30 to $50 million to the overall project cost.

Asked about the Valium 10mg Buy Uk second cable, National Grid Deputy General Counsel Ronald Gerwatowski said that Valium 10mg Buy Uk “we [National Grid] have Valium 10mg Buy Uk the right to own the cable. If we own the cable, the Valium 10mg Buy Uk cable will become a part of National Grid’s transmission rate base. How the Valium 10mg Buy Uk costs will be spread through transmission rates among Block Island, National Grid’s customers on the Valium 10mg Buy Uk mainland, or any other transmission customers is yet to be determined.”

Short argued that Valium 10mg Buy Uk in order to accurately determine the cost of the Block Island Project, the Valium 10mg Buy Uk cable should be included in the PPA.

“I believe that, in order to perform an apples-to-apples comparison [with other offshore wind projects], one should include the Valium 10mg Buy Uk annual carrying costs of this cable investment in the cost of the Valium 10mg Buy Uk project,” Short said.

The Public Utilities Commission has Valium 10mg Buy Uk been holding public hearings to discuss the PPA.  The last scheduled hearing is on March 26 on Block Island.