The financial analysis and summary results presented in this document represent a first cut at an economic assessment of the proposed Hull Offshore Wind Project. Wind turbine price increases have outpaced the materials and labor price pressures faced by nonrenewable power plant developers due to increased demands on a limited pool of turbine manufacturers and offshore installation companies. Moreover, given the size of the proposed offshore facility, it may be difficult to contract with turbine manufacturers and/or foundation companies given the size and scope of competing worldwide demand. The results described in this report assume that such conditions will not significantly impact the prices that will have to be received from the output of the project
rather, the project size may require as a prerequisite that Hull be able to piggyback on other offshore efforts. The financial estimates provided here necessarily feature a range due to uncertainty in a number of project assumptions as well as overall uncertainty in offshore wind costs. Nevertheless, taken together, the analysis provides a ballpark revenue requirement of approximately $157/MWh for the municipal financing option, with higher estimates possible assuming escalation in costs to levels higher than assumed here.