Inflation Reduction Act: Provisions for Utility Renewable Energy Development

Inflation Reduction Act: Provisions for Utility Renewable Energy Development

Investor-Owned, Co-ops, Public Power & Tribal Utilities

January 31-February 1, 2023 | Online :: Central Time

The federal Inflation Reduction Act (IRA) enacted in late summer 2022 “turned on the switch” to full ownership of renewable energy generation resources for U.S. utilities of all types – investor-owned, cooperatives, public power and munis, as well as tribal power organizations – while reducing their financing costs. Traditional tax equity financing mechanisms that have dominated renewable energy project development for the past two decades, which did not lend themselves to the regulatory and business models of vertically integrated utilities, will continue to flourish.

This course provides a methodical review of financial structuring elements that utilities will need to observe and master to take full advantage of these mechanisms and deliver enhanced benefits to their ratepayers.

Learning Outcomes

  • Review the fundamental features of the Inflation Reduction Act (IRA)
  • Examine the underlying elements that utilities must weigh and balance when determining the preferred project development vehicle
  • Evaluate IRS and U.S. Treasury rulings and guidance that informs how the IRA elements are converted into a project
  • Review critical definitions and terms
  • Discuss and hear from what other utilities are doing to act on the opportunities created by the IRA

Agenda

Tuesday, January 31, 2023 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

 

9:00 – 9:30 a.m. :: Overview and Introductions

9:30 – 10:45 a.m. :: Turning on the Utility Renewable Energy Spigot – Key Features of the Legislation

  • Wind and Solar PTC
  • Solar ITC extension at 30% for the next decade
  • Standalone storage ITC
  • Bonus credits potentially yielding up to 50%
    • Brownfield energy communities
    • Low-income communities enrollment
    • Domestic content
  • Transferability
  • Direct Pay
  • Grant and loan program for clean-energy systems in non-urban utility service areas
  • Advanced manufacturing production and project credit

10:45 – 11:00 a.m. :: Morning Break

11:00 a.m. – 12:30 p.m. :: Internal Revenue Service and Treasury Department Details – the Knowns, the Known Unknowns and the Unknown Unknowns

As of the event announcement date, Internal Revenue Service guidance is pending as to how the law should be interpreted. The rules and guidance will be addressed if promulgated as of the event date, otherwise the subject matter experts will impart best practices and perspective for utilities to move forward.  Elements under discussion may include:

  • Key definitions
  • Depreciation
  • Basis step-up
  • Legacy tax equity investments
  • Weighted-average cost-of-capital (WACC)
  • M&A transactions of projects placed in service prior to the enactment of the stand-alone storage ITC
  • Recapture considerations
  • Potential book minimum tax liability
  • Internal Revenue Service rulings, guidance and timetables

    12:15 – 1:00 p.m. :: Lunch Break

    1:15 – 2:45 p.m. :: Key Decision Points – Choosing the Preferred Vehicle Among Several Good Options

    • PTC vs. ITC project determination
      • Cost
      • Capacity factor
      • Discount rate applied by the project owner
      • Assumed PTC inflation rate, and
      • Whether the project is 5 megawatts (a/c) or less such that its interconnection costs would be ITC eligible

    2:45 -3:00 p.m. :: Afternoon Break

    3:00 – 4:45 p.m. :: Utility Regulatory & Oversight Considerations

    • Regulatory oversight, processes and mechanisms
      • Rate case and cost-of-service implications
      • Anti-competitive clauses in state compact
      • Impact on tax normalization and accounting treatment
      • Consequences of “stranded” retirement/replacement by renewable energy of thermal/fossil power generation
      • Adjustments required of IRP, transmission and other planning/modeling/procurement efforts
      • Regulatory direction re: (competing?) project location and siting
    • Ensuring that IRA-induced utility cost savings flow through to ratepayers
    • Passing through to ratepayers any reduction(s) in cost of service
    • Project permitting and approval authority devolved from state community and agencies to local and regional jurisdictions (AHJ)

    4:45 p.m. :: Program Adjournment for Day

     

    Wednesday, February 1, 2023 : Central Time

    8:45 – 9:00 a.m.
    Log In

    12:15 – 1:00 p.m.
    Lunch Break

    9:00 a.m. – 4:45 p.m.
    Conference Timing

     

    9:00 – 9:45 a.m. :: Utility Policy & Considerations

    • Stakeholder engagement
    • Compatibility/conflict that utility asset ownership may create with IPP project developers
    • Impact on roof-top and retail consumer solar installations within the service territory
    • Attainment of RPS and de-carbonization mandates
    • Impact on REC values
    • Role of state utility regulators

    9:45 a.m. – 12:15 p.m. :: Utility Perspectives on IRA Applicability

    9:45 – 10:30 a.m. :: Government & Other Special District Agencies

    10:30 -10:45 a.m. :: Morning Break

    10:45 – 11:30 a.m. :: Muni

    11:30 – 12:15 p.m. :: Cooperative/G&T

    12:15 – 1:00 p.m. :: Lunch Break

    1:00 – 2:45 p.m. :: Utility Perspectives on IRA Applicability (cont’d)

    1:00 – 2:45 p.m. :: Native American/Indian Country/Tribal

    1:45 – 2:30 p.m. :: Federal

    2:30 – 3:15 p.m. :: IOU

    3:15 – 3:30 p.m. :: Afternoon Break

    3:30 – 4:45 p.m. :: Related Project Development-Related Concepts Applicable to Utilities Perhaps Not Encompassed by the IRA

    • Reassessing prices and valuations of projects
    • Relationship to normalization accounting principles
    • Re-positioning from previous project financing/structuring commitments
    • Corporate taxes (as applicable)
    • Role of state utility regulators
    • Credit metrics
    • Passing through to ratepayers any reduction(s) in cost of service

    4:45 p.m. :: Program Adjournment

    Speakers

    • James Duffy, Partner & Chair – Renewable Energy, Nixon Peabody LLP

    • Michael Enger, Director – Energy Market Operations, Austin Energy

    • Tony Grappone, Partner, Novogradac & Company LLP

    • Christopher Villarreal, Associate Fellow – Policy Team, R Street Institute

    • Mitchell Rapaport, Partner – Public & Infrastructure Financing, Nixon Peabody LLP

    • Forrest Milder, Partner, Nixon Peabody LLP

    • Jessie Ciulla, Senior Associate – Carbon Free Electricity Team, RMI

    • Christian Fong, Senior Associate – Carbon Free Electricity Team, RMI

    • David Pitts, Senior Engineer – Production Cost Modeling & Data Analytics, Duke Energy

    • William (Mike) Lettig,National Executive – Native American Financial Services, KeyBanc Capital Markets

    • Rob  Davis,Public Affairs & Program Director, Connexus Energy

    • Greg Turk, Managing Director, Horizon Energy

    Online Delivery

    We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

    • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
    • You will receive a meeting invitation will include a link to join the meeting.
    • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
      • You will need to join the appropriate meeting at the appropriate time.
    • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
    • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

    Register

    Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

    If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

    REGISTER NOW FOR THIS EVENT:

    Inflation Reduction Act: Provisions for Utility Renewable Energy Development

    January 31-February 1, 2023 | Online
    Individual attendee(s) - $ 1295.00 each

    Volume pricing also available

    Individual attendee tickets can be mixed with ticket packs for complete flexibility

    Pack of 5 attendees - $ 5,180.00 (20% discount)
    Pack of 10 attendees - $ 9,065.00 (30% discount)
    Pack of 20 attendees - $ 15,540.00 (40% discount)

    Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before December 30, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

    CEUs

    Credits

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    EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

    EUCI is authorized by IACET to offer 1.3 CEUs for this event

    Requirements For Successful Completion Of Program  

    Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

    Instructional Methods 

    PowerPoint presentations and classroom discussion will be used in this course for each learning outcome.  


    Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

    Course CPE Credits: 15.5
    There is no prerequisite for this Course.
    Program field of study: Specialized Knowledge
    Program Level: Basic
    Delivery Method: Group Internet Based
    Advanced Preparation: None

    CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

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