AIM Issues Statement Regarding AG’s Ruling on Cape Wind Rate Case

BOSTON--(BUSINESS WIRE)--Associated Industries of Massachusetts today made the following statement regarding the Attorney General's ruling on the Cape Wind rate case:

Associated Industries of Massachusetts and the Massachusetts employer community are deeply disappointed that the Attorney General has elected to reach a settlement with Cape Wind and National Grid that will leave consumers paying more than twice the current market rate for electricity.

The settlement circumvents what should have been an open and transparent review by the Department of Public Utilities of the largest electricity rate case in recent memory. We had hoped that the Attorney General would be a stronger advocate for the interests of financially struggling employers and citizens of the commonwealth.

National Grid has agreed under the settlement to buy power from the offshore Cape Wind project for 18.7 cents per kilowatt hour, down from an original starting price of 20.7 cents per kilowatt hour. But 18.7 cents is still twice the current market price and well above the price of renewable power from other sources. In addition, the Attorney General supported an annual 3.5% rate increase over a fifteen year period that will further impact all classes of ratepayers.

The bottom line: a bad deal for ratepayers negotiated behind closed doors and without public input. It is a process unfortunately consistent with the Cape Wind/National Grid agreement itself, which was concluded without competitive bidding and without regard to the objective of acquiring the largest possible amount of renewable power at the best available price.

AIM is in favor of “smart” renewable development that is more competitive, cheaper, and less impactful on the business climate than the proposed Cape Wind/National Grid agreement. We remain committed to a full and fair examination of the agreement and its potential effects on the Massachusetts economy.