PPL - Rhode Island rejects Ørsted-Eversource offshore wind proposal as too expensive

2023-07-19 10:52:21 ET

PPL Corp.'s ( NYSE: PPL ) Rhode Island Energy said Wednesday it will not move forward with the Revolution Wind 2 offshore project, arguing rising costs have made the deal too expensive for ratepayers.

The utility had received only one bid in response to its request for proposals, the 884 MW project submitted by Denmark’s Ørsted ( OTCPK:DNNGY ) and Eversource Energy ( NYSE: ES ).

Rhode Island Energy said higher interest rates, increased capital and supply chain expenses, and the uncertainty of federal tax credits likely all led to an escalation in proposed contract costs, which were ultimately deemed unbearable for customers and not aligning with existing offshore wind power purchase agreements.

Ørsted ( OTCPK:DNNGY ) and Eversource's ( ES ) original 704 MW Revolution Wind project, which will supply 400 MW to Rhode Island under a PPA signed in 2019, is expected to become operational in 2025.

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