REPI

WPUDA urges funding of Renewable Energy Production Incentive program

The Renewable Energy Production Incentive program allows public power utilities and cooperatives to lower the cost of renewable generation.

REPI was created by Congress in 1992 to provide consumer-owned utilities with a comparable incentive to make investments in renewable generation as the tax incentives available to privately-owned companies.

But while the demand for renewable energy has increased, along with growing concerns about climate change and the nation’s desire to become more energy independent, REPI, which is dependent on annual congressional appropriations, has never been adequately funded.

Over the past five years, consumer-owned utilities have applied for an average of $42 million in REPI funding, yet Congress has appropriated less than $5 million per year.

Most recently, REPI received just $4.5 million in FY 2008, while the request that year was $24 million.
WPUDA is urging Congress to include at least $25 million for REPI in the FY 2010 Energy and Water Development Appropriations Act.

Given the public’s demand for “green” power and increasing state and federal calls for renewable generation, it is time to finally fund the program at an appropriate level.

The REPI program provides a 1.5 cent/kWh incentive (indexed for inflation) for consumer-owned utilities to develop renewable energy generation, including solar, wind, geothermal, certain biomass and ocean power resources.

Importantly, the incentives are paid only after projects are online and are based on the actual energy generated.
While REPI is a national program, Washington has been one of the largest beneficiaries. According to the Department of Energy, Washington utilities received about a third ($10.2 million) of the approximately $32 million in REPI funding between 2001 and 2007.

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