BUSINESS: Cape Wind attempt to win DOE loan "on hold"
Posted: 5/13/2011 3:34:38 PM
Updated: 5/13/2011 3:35:38 PM
BOSTON (AP) - Cape Wind's attempt to win a Department of Energy loan guarantee that would lower the price of its power has been placed "on hold" until the loan program receives more funding.
On its website Friday, Cape Wind said it would still pursue the loan, since it would reduce costs for state electricity customers.
Cape Wind has a 15-year deal to sell National Grid half its power starting in 2013 at 18.7 cents per kilowatt hour, with the cost increasing 3.5 percent annually. The state attorney general has estimated a DOE loan at 5 percent interest would drop the starting price for Cape Wind's power to about 17.3 cents per kilowatt hour.
Cape Wind's opponents say its power is too expensive, but advocates say it a good price for the project's benefits, including hundreds of jobs.
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