How Regulators Can Direct Utilities to Leverage IRA Savings

This guide by RMI outlines how Public Utility Commissions (PUCs) can use regulatory actions to ensure utilities leverage the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) to reduce costs for ratepayers. It provides four case studies from Washington, Georgia, Oregon, and New Jersey, demonstrating proactive, mid-planning, procurement-stage, and program-design interventions to improve grid affordability and reliability.

• The Washington Utilities and Transportation Commission (UTC) issued a policy statement requiring utilities to incorporate IRA and IIJA considerations into their integrated resource plan (IRP) filings. This includes updating IRP assumptions to include IRA tax credits and identifying transmission needs that qualify for IRA programs. To incentivize the pursuit of federal funding, the UTC created a mechanism allowing utilities to earn a higher return on equity for funds used to meet federal matching requirements.
• The Georgia Public Service Commission (PSC) used a stipulated agreement with Georgia Power (GPC) to mandate the investigation of federal funding opportunities before the 2025 IRP. GPC is required to research funding enabled by the IRA and the Title 17 Energy Infrastructure Reinvestment (EIR) Clean Energy Financing Program for energy storage systems, grid-enhancing technologies, distributed energy resources, and behind-the-meter demand side management.
• The Oregon PUC integrated IRA-related financing into the procurement process for Portland General Electric (PGE). The PUC ordered that all bids in the procurement process be submitted both with and without the use of Energy Infrastructure Reinvestment (EIR) financing to quantify potential savings. Additionally, the PUC linked these efforts to future rate cases, signaling that the utility's success or failure in securing EIR financing would be considered in prudency determinations.
• In states without a formal IRP process, the New Jersey Board of Public Utilities (NJBPU) has incorporated IRA funding into clean energy program design. This includes holding a technical conference in December 2023 and issuing a request for information in May 2024 to coordinate the IRA’s Home Electrification and Appliance Rebate and Homes Efficiency Rebate programs with existing state initiatives, specifically targeting affordability for low-income households.

APA

RMI (2024). How Regulators Can Direct Utilities to Leverage IRA Savings. https://rmi.org/resources/how-regulators-can-direct-utilities-to-leverage-ira-savings/

Chicago

RMI. How Regulators Can Direct Utilities to Leverage IRA Savings. 2024. https://rmi.org/resources/how-regulators-can-direct-utilities-to-leverage-ira-savings/.

Wikipedia

{{cite report |author=RMI |title=How Regulators Can Direct Utilities to Leverage IRA Savings |date=28 August 2024 |url=https://rmi.org/resources/how-regulators-can-direct-utilities-to-leverage-ira-savings/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024how, author = {{RMI}}, title = {{How Regulators Can Direct Utilities to Leverage IRA Savings}}, institution = {RMI}, year = {2024}, month = aug, url = {https://rmi.org/resources/how-regulators-can-direct-utilities-to-leverage-ira-savings/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }