The main point of contention in the contract talks between National Grid and Deepwater Wind is the price of electricity generated by the proposed wind farm off Block Island. Deepwater has quoted a price of between 20 and 25 cents per kilowatt-hour. National Grid has calculated the cost, with adjustments over time, to be closer to 30.7 cents per kilowatt hour. Either price is much higher than the 9.2 cents per kilowatt-hour that National Grid pays for power mainly from natural gas plants. So far, the utility has refused to pay the higher cost for wind energy, saying it's simply too much.

An amendment to a state renewable energy law is expected to encourage wind and solar power by making it easier for projects to be paid when they produce more electricity than they use. The amendment, signed by Governor Carcieri this month, reduces restrictions on a law enacted last year that for the first time in Rhode Island allowed "net metering." The law was designed to compensate green energy producers for surplus electricity they pump back into the power grid.

PORTSMOUTH — The town has received approval to borrow up to $2.6 million in Clean Renewable Energy Bonds to finance the proposed purchase and installation of one or two wind turbines at the public middle and high schools to offset their use of electricity.

PORTSMOUTH — The town has received approval to borrow up to $2.6 million in Clean Renewable Energy Bonds to finance the proposed purchase and installation of one or two wind turbines at the public middle and high schools to offset their use of electricity. The town received permission last week from the Internal Revenue Service to issue the interest-free bonds as part of a program created under the federal Energy Tax Incentives Act of 2005. The IRS has approved the borrowing of $800 million in bonds by 610 renewable energy projects across the country.