Basin Electric calls for Congress’ backing of clean energy tax credits
TL/DR –
Todd Brickhouse, CEO of Basin Electric Power Cooperative, argued before a House hearing that removing the production tax credit (PTC) under the Inflation Reduction Act will negatively impact utilities and ratepayers. Congressional Republicans are considering changes to the PTC to reduce federal spending, but Brickhouse noted that the tax credit encourages investment in renewable energy projects such as Basin Electric’s 1,500 MW solar project. Others, including Rep. Mariannette Miller-Meeks, voiced support for the tax credits, arguing they help spur energy infrastructure buildout, while some, like Asim Haque from PJM Interconnection, suggested that more needs to be done to improve and expedite the interconnection process for new power supplies.
Congress Urged to Maintain Inflation Reduction Act Clean Energy Tax Credits
Todd Brickhouse, CEO of Basin Electric Power Cooperative, urged Congress to uphold the Inflation Reduction Act’s clean energy tax credits during a House hearing. He said removing the production tax credit would disrupt utilities’ planning and increase costs for ratepayers.
Implications for Basin Electric
Basin Electric, a Bismarck-based generation and transmission wholesale cooperative, is constructing 1,500 MW of solar, assuming eligibility for production tax credits. This comes amid Congressional Republicans’ plans to reduce federal spending, potentially impacting the tax credits in the Inflation Reduction Act.
Rep. Miller-Meeks Advocates for Tax Credits
Rep. Mariannette Miller-Meeks, R-Iowa, argued that the Act’s tax credits could boost energy infrastructure development to meet increasing electricity demand. She endorsed these tax incentives in an August 6 letter to House Speaker Mike Johnson.
Support for Tax Credits in the Energy Sector
Noel Black from Southern Co. agreed with Miller-Meeks, noting the tax credits could facilitate affordable project implementation. Rep. Brett Guthrie, R-Ky., also emphasized the importance of renewable energy in meeting electricity demand but cautioned about over-incentivizing.
Interconnection Delays and New Proposals
Asim Haque from PJM Interconnection highlighted the issue of interconnection delays slowing new power supplies. To combat this, the Federal Energy Regulatory Commission approved a PJM proposal allowing 50 ready-to-go projects a one-time interconnection study.
Meeting Power Supply Needs
According to Haque, PJM intends to meet near-term power supply needs with renewable energy, energy storage, nuclear and gas-fired power plants expansions, plus demand response. Long-term additions might include gas-fired power plants and possibly small modular nuclear reactors.
Infrastructure and Overbuilding Concerns
While Southern Co.’s Black stressed the need for more natural gas infrastructure, Duke University’s Tyler Norris cautioned against a quick overbuild of gas-fired generation, which could hinder investment in advanced nuclear and geothermal technologies.
Accelerating Resource Availability
In the short term, Norris suggested the U.S. should seek ways to bring resources online faster and possibly use Texas’ “connect-and-manage” interconnection process as a model.
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