Deepwater Wind has submitted a proposal to National Grid for a contract to provide alternative energy to Block Island, which has some of the highest electricity rates in the country.

Deepwater, a New Jersey-based start-up company, proposes installing five to eight wind turbines in waters about three miles from the island by 2012. The small wind farm, which would be the first of two the company is proposing in Rhode Island, would provide more than enough power for Block Island when the wind is blowing. Any excess would be fed through an underwater cable to the mainland and the grid that supplies power to the rest of the state.

But before the company breaks ground on the project it must reach an agreement to sell power to National Grid, Rhode Island's main electric utility. Under a new law signed by Governor Carcieri in June, National Grid must enter into power purchase agreements with green energy companies.

The law requires the utility to first work out a contract to supply green energy to Block Island, which relies on diesel generators for its electricity, and then sign a more far-reaching, long-term pact for providing alternative power throughout the state.

National Grid released a request for proposals for the Block Island contract July 31 and gave developers a month to apply. David Graves, a spokesman for National Grid, said the utility would not say which companies applied or even how many. Releasing any information about the bids could complicate negotiations, he said.

"We are evaluating the responses," Graves said.

Paul Rich, chief development officer for Deepwater, confirmed that his company did submit a contract proposal before the deadline Monday. He would not release any further information about the bid. Deepwater plans to eventually apply for a long-term contract for power from its second wind farm, which is proposed to be built at least 15 miles off the Rhode Island coast and have about 100 turbines.

Rich did not know if other companies submitted bids for the Block Island contract.

"I know we did and we're very excited by this," he said.

According to the energy law, National Grid has until Oct. 15 to choose a preferred developer for Block Island and work out a proposed contract. The proposal must then go to the state Public Utilities Commission for approval. The commission has until Dec. 31 to make a decision on the contract.