By Boston Business Journal

The electricity from the Cape Wind project would cost 10 percent less than previously planned under an agreement reached in principal with the state attorney generalâ¿¿s office.

Attorney General Martha Coakley announced Friday that her office had reached the deal with the developer of the proposed Nantucket Sound wind farm, Cape Wind Associates, and with utility National Grid, which plans to buy the power from Cape Wind.

The starting rate would be 18.7 cents per kilowatt hour under the agreement, compared to the original rate of 20.7 cents per kilowatt hour. The deal would save ratepayers up to $456 million during the 15-year life of the power purchase contract, Coakleyâ¿¿s office said.

The rate would take effect in 2013, the first year the project is expected to produce power. The rate would still be allowed to increase by 3.5 percent per year under the agreement, as previously planned.

The parties plan to submit a formal settlement agreement and revised contracts to the Department of Public Utilities within days, according to Coakleyâ¿¿s office. National Grid and Cape Wind have asked that the contracts be approved by Nov. 15.

Copyright 2010 American City Business Journals
Copyright 2010