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Mass. Business Group Challenges Cape Wind Deal

A Massachusetts business group is asking the state's highest court to set aside state approval of the power-purchase deal between the Cape Wind project and utility National Grid.

The 6,000-member Associated Industries of Massachusetts said in a statement Monday the Department of Public Utilities overstepped its powers and set a dangerous precedent for allowing utilities to negotiate agreements outside the competitive bidding process when it approved the deal last month.

The business group said the agreement will drive up electricity rates.

The state endorsed the deal between National Grid and Cape Wind, a 130-turbine wind farm planned for Nantucket Sound. National Grid has agreed to buy half of Cape Wind's power, beginning in 2013.

Cape Wind's Mark Rogers says he expected a challenge but is sure the National Grid review will stand up to legal scrutiny.

"It's very well reasoned," Rogers said. "It was very comprehensive. And the bottom line is that there are a lot of public policy benefits from this project."

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This program aired on December 13, 2010. The audio for this program is not available.

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