Answers to BIRA Members Questions of Deepwater Wind

Meeting 7/29/11

Question: What is the time table for the Offshore Wind Project?

Answer: Data collection for submitting application for Permits is underway through this fall. Applications for Permits will be submitted in the first quarter of 2012 and it is anticipated that the Permitting will take six to twelve months. With Permits, construction will begin in 2013 with construction being finished within a year.

Question: What will happen to electricity rates on Block Island when the offshore wind farm in operational?

Answer: The Town’s Electric Utility Task Group estimates the electricity costs when the offshore wind farm is operational as follows:

• The average residential customer using 500 kWh per month will save $60 per month

• The average small business customer using 700 kWh per month will save $85 per month

• The average large business customer using 7,000 kWh per month will save $925 per month

These estimates were based on BIPCO monthly Fuel Charge of $0.21 per kWh. The current Fuel Charge is $0.32 per kWh so the savings will be higher.

Question: What will the night lighting be for the five wind turbines and have there been any simulations of these effects?

Answer: Night lighting for aviation will be determined by the FAA during the Permitting process. It is anticipated that the aviation lights on the top of the turbines will be similar to the light on top of the Cell Phone Tower at the power company. Navigation lighting and fog horns will be determined by the Coast Guard during the Permitting process. Fog horns should be not louder than the current fog horns at the Southeast Lighthouse.

Until the FAA and Coast Guard determine the lighting requirements, there cannot be any simulations.

Question: What will happen to the five turbines once their life span ends in about 20 years?

Answer: Deepwater Wind’s Purchase Power Agreement (PPA) with National Grid requires Deepwater Wind to establish a Decommissioning Trust which will pay for the removal of the out dated wind turbines. These funds will be held by a professional, third party Trustee.

Question: What will be visible from the South/Southeast side of the Island during and after construction?

Answer: During construction there will be several large vessels including a crane. After construction there will be the five 6MW turbines each being 328 feet to the nacelle and 525 feet to the tip of the rotor. There will also be service vessels.

Question: Why can’t Block Island just have a Cable to the mainland?

Answer: The Town’s Electric Utility Task Group has determined that the 1,800 BIPCO customers can not afford to pay for a $40–50 million Cable to the mainland. The Deepwater Wind offshore wind project has the cost of the Cable to the mainland spread over all the Rhode Island customers of Nation Grid.

Question: What are the success criteria of the Block Island offshore wind project?

Answer: To demonstrate Deepwater Wind’s ability to permit, construct and operate an off shore wind project. Based on these successes, Deepwater Wind will move to the 1,000 MW project fifteen miles offshore.

Question: Will residents have the ability to vote on potential expansions of the Block Island offshore wind project?

Answer: There is no need for residents to vote on potential expansion because the State enabling legislation prohibits expansion of the Block Island offshore wind project beyond 30 MW to be produced from the five turbines.

Question: Will there be a shift in property values resulting from those homes that have a view of the five turbines?

Answer: There is no data to suggest that property values will decline due to the view of the five turbines. In fact there are studies of on onshore wind farms that have shown no change in property values.

Question: Who will be responsible for the maintenance and repair of the Cable to the mainland?

Answer: The ultimate owner, most likely National Grid, will be responsible for the maintenance and repair of the Cable.

Question: Is there a plan for backup if the Cable or the Wind Turbines fail?

Answer: Yes, BIPCO will maintain backup generator capacity if there is a failure in the Cable or the Wind Turbines.

Question: What is the plan to upgrade the electric distribution system on the Island?

Answer: BIPCO has a current plan to upgrade the distribution system by doubling the voltage. The estimated cost is $3.6 million which would add $0.025 per kWh to electric rates.

Question: Is there a plan to purchase BIPCO?

Answer: The draft Energy Component of the New Shoreham Comprehensive Plan suggests consideration of a public, nonprofit ownership of BIPCO. In 2008 an Island nonprofit organization made a formal offer to purchase BIPCO for $2 million and to place the company into a rate payer cooperative. The stockholders turned down the offer by asking $4 million as a purchase price.

Question: What studies have been done regarding the environmental impacts of the five offshore wind turbines?

Answer: The Rhode Island Ocean Special Area Management Plan (OSAMP) has addressed environmental and commercial impacts and will be used as a basis for the permitting process by the Army Corp of Engineers and Rhode Island Coastal Resource Management Council. Deepwater Wind will also be required to undertake an Environmental Assessment of the offshore wind project.

These answers were prepared by Bill Penn, President of BIRA , taken from a question and answer session with BIRA, initiated by Deepwater Wind held on Friday, July 29, 2011. BIRA had asked it's membership to write in with specific questions for Bill Penn to ask Deepwater Wind.

The questions asked were taken directly from members of BIRA who wrote in with specific questions.

The answers provided are Deepwater Wind's responses to the questions posed by BIRA. They are not representative of the BIRA organization.

Any additional question should be directed to Bryan Wilson: bwilson@dwwind.com