Wal-Mart 'concerned' about Cape Wind PPA
US: Cape Wind's controversial power purchase agreement with National Grid has been questioned by retail giant Wal-Mart as to whether it provides value for money.
Cape Wind's meteological tower, the first installation of the projected 480MW project
The state's Department of Public Utilities (PUC) is currently assessing Cape Wind's deal with National Grid. The deal, which is for half of the development's 480MW capacity, is considered comparatively expensive.
Beginning in 2013, National Grid would buy half the wind project's output at $0.207/kWh for 15 years, with annual inflation adjustments of 3.5% over the 15 years.
Speaking to the Boston Globe, Wal-Mart said that while it agreed with the concept of wind power it was concerned that the higher costs of electricity would be passed onto customers.
The retailer, which pays $2million a year for electricity to power its 28 Massachusetts stores, said it routinely became involved in discussions about utility rates, as it was a means of driving down its own prices.
Despite Wal-Mart's comments, Cape Wind's deal with National Grid received a boost from the state government yesterday. Three Massachusetts state house committee chairman called on the PUC to approve the National Grid contract.
