Merger could impact US’ first wind farm

Though the first US high profile offshore wind farm enjoys federal and state backing, it has not been able to win over the second-largest power utility in Massachusetts.

Cape Wind desperately needs big power customers to obtain financing to fully build its 130-turbine project in Nantucket Sound but the utility NStar has not much interest in Cape Wind with chief executive Tom May once proclaiming his company was "agnostic" about it.

However analysts say a pending merger between NStar and Northeast Utilities may trigger a process that would get NStar to buy Cape Wind power.

With the announcement of the merger last year, regulators included a requirement that such deals would need to advance the state's clean energy goals, including development of offshore wind. The state also made a request, for a stay on proceedings for a review of the merger's effect on rates, a lengthy process that could end up killing the merger.

According to Republican state rep Brad Jones, minority leader in the Massachusetts House, the moves were obvious attempts at pressuring NStar to buy power from a favoured private developer.

He said it was the great administration shakedown of NStar.