Washington (Platts)--18Sep2012/243 pm EDT/1843 GMT
US lawmakers debating whether to extend tax subsidies to renewable generation ought to consider such options at providing tax credits to wind power only if it is available during peak demand periods. The federal renewable energy production tax credit is set to expire at the end of 2012 and wind associations and others have lobbied for an extension. The Senate Finance Committee in August passed legislation that would extend the PTC until the end of 2013 but the House of Representatives has yet to vote on the issue. "In terms of the production tax credit, what I've said is that; if, as a society you choose to subsidize something, you should target the subsidy so that it is most useful for society," Commissioner Philip Moeller, a Republican, said at a Platts Energy Podium in Washington. Article continues below... Request a free trial of: Inside FERC Inside FERC is the authoritative guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry and has covered the Federal Energy Regulatory Commission for more than 25 years.
US lawmakers debating whether to extend tax subsidies to renewable generation ought to consider such options at providing tax credits to wind power only if it is available during peak demand periods. The federal renewable energy production tax credit is set to expire at the end of 2012 and wind associations and others have lobbied for an extension. The Senate Finance Committee in August passed legislation that would extend the PTC until the end of 2013 but the House of Representatives has yet to vote on the issue. "In terms of the production tax credit, what I've said is that; if, as a society you choose to subsidize something, you should target the subsidy so that it is most useful for society," Commissioner Philip Moeller, a Republican, said at a Platts Energy Podium in Washington.
Article continues below...
Inside FERC is the authoritative guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry and has covered the Federal Energy Regulatory Commission for more than 25 years.
"Maybe you want to increase the subsidy, but you only make it available for the thousand peak hours" of energy consumption in a year, he said. "And then if wind is there" during those hours, it gets the subsidy. But if wind is there "when we don't need it, it doesn't get it, because there are reliability and economic implications of subsidizing something in the middle of the night when we don't need it," Moeller said. But "if the wind is there on a peak hour, maybe it deserves more of a subsidy, if we're going to go down the subsidy route," Moeller said.--Esther Whieldon, esther_whieldon@platts.com --Edited by Jeff Barber, jeff_barber@platts.comStream or download a recording of the Platts Energy Podium: http://plts.co/moeller18
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