Utility rates to increase in New Jersey following approval of two massive offshore wind projects

The New Jersey Board of Public Utilities has awarded contracts for two massive offshore wind projects that when operational will provide a total 2.74 gigawatts of power when the wind is blowing.

The projects will increase residential electric rates by $.684 per month, according to E&E News, and commercial rates by $58.73 per month. Industrial customers will see an increase of $513.22 per month.

Attentive Energy Two, which is a joint venture between TotalEnergies and Corio Generation, will be constructed approximately 40 miles off the coast of New Jersey and produce 1.34 gigawatts of electricity when winds are high enough to turn the generators.

Leading Light Wind, which is a joint venture between Invenergy and energyRe, is planned 40 miles off the coast of New Jersey and south of Attentive Energy Two. The project will produce 2.4 gigawatts of electricity when winds are high enough to turn the generators.

With backup from nuclear, coal, natural gas or hydroelectric, the projects combined will power about 1.8 million homes, according to the developers' estimations.

The contracts, the approval of which the board announced Wednesday, include provisions to prevent future cancellations, as happened with a 2.2 gigawatt offshore wind project by Orsted in November, E&E News reported. In a hearing, BPU Commissioner Zenon Christodoulou told the developers not to ask for any rate increases in the future, regardless of circumstances.