Testimony of Managing Principal Susan Tierney Critical in Approval of National Grid Agreement with Cape Wind
December 22, 2010
The Massachusetts Department of Public Utilities (DPU) recently approved National Grid’s request to purchase 50% of the power from the Cape Wind project, which is expected to be the first offshore wind facility in the United States.
Managing Principal Susan F. Tierney's testimony on behalf of National Grid provided critical support for the utility’s 15-year power purchase agreement with Cape Wind and for state utility regulators’ findings in approving the contract.
Dr. Tierney’s testimony focused on the regulatory standards for a long-term contract under the state’s Green Communities Act of 2008. This was the first case in which a contract was reviewed under the Act’s long-term contracting standards. The DPU had to find that a proposed agreement would be cost-effective, enhance the reliability of the electricity system in Massachusetts, moderate system peak-load requirements, and create additional employment. It had to consider other benefits and costs, as well as the need for the contract to facilitate the financing of the renewable project.
Dr. Tierney touched on all these issues in her testimony and presented the results of her analysis of the demand for and supply of renewable power under current renewable portfolio standards in the region. She also testified on issues related to the relationship between transmission capabilities and the location of renewable projects, and the timing of electric infrastructure development.
In its 300-page order, the DPU noted that the “analysis of renewable resource supply and demand is valid and provides useful information for the Department’s consideration” in evaluating the compliance benefits of the power purchase agreement.
Read the DPU press release here
Read the order here