Cape Wind energy project dealt setback as 2 utilities terminate contracts to buy power

Two major utilities have terminated their contracts to buy power from the proposed wind farm in Nantucket Sound, saying project managers had missed a crucial deadline.

National Grid and NStar — a subsidiary of Northeast Utilities — say Cape Wind missed the Dec. 31 deadline contained in the 2012 contracts to obtain financing and begin construction, and chosen not to put up financial collateral to extend the deadline.

NStar had agreed to buy 27.5 percent of Cape Wind's power. National Grid had signed on to purchase 50 percent.

Cape Wind has proposed a $2.5 billion, 130-turbine offshore wind farm in the waters off Cape Cod.

A Cape Wind spokesman says the developer does not "regard these terminations as valid" because of provisions in the contracts that extend deadlines, including protracted litigation.