Associated Press (AP) cited supporters and detractors of the plan as saying that the contracts have been terminated as Cape Wind had failed to obtain financing and to begin construction by 31 December deadline.
NStar spokeswoman Caroline Pretyman was quoted by the news agency as saying: "Unfortunately, Cape Wind has missed these critical milestones.
"Additionally, Cape Wind has chosen not to exercise their right to post financial security in order to extend the contract deadlines. Therefore the contract is now terminated."
National Grid spokesman Jake Navarro was quoted by the news agency as saying: "National Grid is disappointed that Cape Wind has been unable to meet its commitments under the contract, resulting in today’s termination of the power purchase agreement."
Cape Wind has proposed its plan to construct a 130-turbine offshore wind farm on Horseshoe Shoal in Nantucket Sound off Cape Cod, Massachusetts, the US.
NStar and National Grid signed the PPA earlier to acquire 27.5% and 50% of power generated from the wind facility, respectively.
However, Cape Wind spokesman Mark Rodgers was quoted by the news agency as saying that the developer does not "regard these terminations as valid" due to the terms in the contracts, which would stretch the deadlines, including the impacts of protracted litigation by project opponents.
