Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today issued the following statement regarding the filing of agreements with the Connecticut Electric Distribution Companies to terminate power purchase agreements for the Park City Wind offshore project.
“One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions, and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts.
“Since that time, Avangrid has been transparent and collaborative, working diligently with state and federal officials and stakeholders to find solutions to the economic challenges facing Park City Wind as we continued to advance the permitting and development of the project. After exploring all potential solutions to the financial challenges facing the project, and engaging in good-faith and productive discussions with Connecticut state officials regarding these challenges, it is clear the best path forward for Park City Wind is in the termination of the Power Purchase Agreements and a rebid of the project.
“Pursuant to the contracts, Avangrid and the Connecticut Electric Distribution Companies have agreed to terminate the PPAs which will allow all parties an opportunity to pursue an expedient path forward.”