Negotiated prices for power from Vineyard Wind went into effect Friday.
Until now, the wind farm has been selling electricity at market rate, though it offered lower wholesale prices than other sources of power this winter, according to Gov. Maura Healey.
But with all 62 turbines now installed, Healey announced Monday that Vineyard Wind’s contracts with power companies have been activated. The wind farm will sell to Eversource, National Grid, and Unitil at the contracted prices.
The wholesale price for power from Vineyard Wind will average $69.50 per megawatt hour over the course of the 20-year contract.
Wholesale power in New England in January averaged more than double that, according to grid operator ISO New England, though prices normally rise in winter.
Healey said in a press release that Vineyard Wind is expected to save customers $1.4 billion over the life of the contract.
Activation of the contract comes less than two weeks after the wind developer’s attorneys appeared in Suffolk Superior Court in Boston for the initial hearing in Vineyard Wind’s lawsuit against its turbine manufacturer, GE Renewables.
Vineyard Wind is seeking to block GE from walking away from the remainder of its contracts to supply, service, and maintain the turbines.
The two are involved in a financial dispute that stems from a blade failure in 2024.
An engineer determined that GE owed Vineyard Wind about $853 million, mainly related to the blade failure.
As a result, Vineyard Wind has withheld about $300 million in payments to GE Renewables. The wind company maintains that even with the $300 million in withheld funds, GE still owes nearly $550 million.
But GE Renewables, a subsidiary of GE Vernova, argues that Vineyard Wind cannot withhold payment because the damages are disputed. GE is seeking to terminate its contracts.
Vineyard Wind won a preliminary injunction against GE April 17. Judge Peter Krupp temporarily barred GE Renewables from stopping work under the contracts while the case continues.
On Friday, the judge is scheduled to preside over a second hearing in the case — this time on a motion by GE Renewables to force Vineyard Wind to submit to arbitration over the financial claims and end the lawsuit.
