Analysis Group Team Publishes Report Examining How Vertically Integrated Utilities Could Maximize Return on Federal Funding Opportunities
January 24, 2024
An independent report from an Analysis Group team, including Principal Paul Hibbard and Senior Advisor Sue Tierney, examines the “once-in-a-lifetime opportunity” afforded to the electric sector by two federal acts. According to the authors, the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) offer “extraordinary financial incentives” to the energy industry, particularly for electric utilities. Under these Acts, utilities could replace aging equipment, adopt advanced technologies, and meet changes in demand due to factors that include the increased electrification of transportation and building sectors. However, as the authors suggest, obstacles such as tight deadlines and competitive procurements can collide with necessary but time-consuming proceedings around utility decisions.
Focusing on vertically integrated utilities, the authors describe the utility and regulatory context for considering funding opportunities under the IIJA and IRA; summarize the Acts’ scope of electric utility funding opportunities; discuss how to maximize the Acts’ potential contributions; and develop some potential considerations for electric utilities, regulators, and stakeholders.
The report, “Electric Utilities and the IRA/IIJA: Ensuring Maximum Benefits for Consumers from New Federal Funding Opportunities,” was prepared at the request of the Center for Applied Environmental Law and Policy, a non-partisan nonprofit with the mission of thoughtful development and implementation of environmental law.