Why should offshore wind power cost 270% more than conventional power?
There are seven uility companies delivering electricity to customers in Massachusetts. These companies buy power on the wholesale market and distribute it through the electric grid. Each of these seven companies bills their customers, adding to the price of the electricity itself their own costs for various transmission expenses plus approximately ten percent for profit. Until now the electricity sold in Massachusetts was generated by power plants using natural gas, oil, coal or nuclear energy as fuel and the price charged for power was established as an average cost among these four conventional sources. So far, so good. But, in 2008 Massachusetts passed a law requiring utilities doing business in the state to include in their power mix 3% renewable energy. To sweeten the deal in behalf of the utilities the commonmwealth’s Department of Public Utilities issued a rule making which allows these companies to add a 4% surcharge to the so-called green energy they sell. And, also allowed un
