How would Cape Wind impact electricity prices?
Cape Wind will help to stabilize and even reduce the price of electricity. Cape Wind will do this in 3 ways: 1) Cape Wind will reduce the clearing price for electricity in the New England spot market by reducing operations of the regions most expensive power plants, this will reduce electricity prices in New England by 25 million dollars per year. 2) Cape Wind will reduce the implementation costs of the Renewable Portfolio Standard to Massachusetts electricity consumers by increasing the supply of renewable energy certificates. 3) Cape Wind will pursue long-term power contract(s) that will lock-in a fixed price for electricity for a term of ten or more years. This would provide electricity consumers purchasing Cape Wind energy with far greater electric price stability and price certainty than is typically available.
