AVANGRID Statement on Commonwealth Wind Project Proceeding

Rhea-AI Summary

AVANGRID (NYSE: AGR) has filed a motion with the Massachusetts Department of Public Utilities for a one-month suspension in reviewing Power Purchase Agreements for the Commonwealth Wind project. This decision addresses escalating economic challenges including commodity price hikes, rising interest rates, and supply chain issues. The suspension aims to allow stakeholders to evaluate the current situation and make necessary adjustments to ensure the project's economic viability. Despite challenges, Commonwealth Wind is positioned to contribute to Massachusetts' clean energy goals by 2028.

Positive

• Commonwealth Wind project expected to contribute to Massachusetts' clean energy goals by 2028.
• Opportunity for stakeholders to assess and adjust Power Purchase Agreements for better economic viability.

Negative

• Increasing economic challenges impacting project review timelines.
• Historic price increases for global commodities may hinder project progress.

ORANGE, Conn.--(BUSINESS WIRE)-- AVANGRID (NYSE: AGR), a leading sustainable energy company and part of the Iberdrola Group, released the following statement regarding its motion, filed with the Massachusetts Department of Public Utilities (DPU), seeking a one-month suspension in the Department’s review of the Power Purchase Agreements for the Commonwealth Wind project (DPU Dockets 22-70, 22-71, 22-72).

“In response to the unprecedented economic challenges facing all major infrastructure projects, including historic price increases for global commodities, sharp and sudden increases in interest rates, prolonged supply chain constraints, and persistent inflation, AVANGRID has filed a motion with the Massachusetts Department of Public Utilities seeking a one-month suspension in the review of the Power Purchase Agreements (PPAs) for the Commonwealth Wind project. A one-month suspension in the proceeding provides a needed opportunity for AVANGRID, the Massachusetts Electric Distribution Companies, state and regulatory officials, and stakeholders to evaluate the current economic challenges facing Commonwealth Wind and assess measures that would return the project to economic viability including, but not limited to, modest changes to the PPAs. Commonwealth Wind remains the best possible solution for Massachusetts to meet its ambitious clean energy and climate goals, and despite historic global headwinds, the project is well-positioned to reach commercial operations in 2028, help the state achieve its 2030 emissions reduction target, and provide significant environmental and economic benefits to the Commonwealth and its ratepayers.”

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $40 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,000 people and has been recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.

With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221021005329/en/

MEDIA:

Craig Gilvarg

craig.gilvarg@avangrid.com

(857) 998-1130

Source: AVANGRID

FAQ

What is AVANGRID's recent update regarding the Commonwealth Wind project?

AVANGRID has filed for a one-month suspension in the review of Power Purchase Agreements for the Commonwealth Wind project to address rising economic challenges.

How will the suspension of Power Purchase Agreements affect AVANGRID?

The suspension allows AVANGRID and stakeholders to evaluate economic challenges and adjust agreements to ensure project viability, impacting future operations positively.

When is the Commonwealth Wind project expected to start operations?

The Commonwealth Wind project is anticipated to reach commercial operations by 2028.

What economic challenges is AVANGRID facing for the Commonwealth Wind project?

AVANGRID is facing unprecedented challenges such as global commodity price increases, rising interest rates, and supply chain constraints.