How Regulators Can Direct Utilities to Leverage IRA Savings

The document outlines strategies for regulators to direct utilities to incorporate Inflation Reduction Act (IRA) tax credits, rebates, and grants into their planning and procurement processes. It highlights specific actions taken by PUCs in Washington, Georgia, Oregon, and New Jersey to improve grid affordability and reliability by mandating the investigation of federal funding, creating financial incentives for matching requirements, and integrating federal rebates into state energy efficiency programs.

• The Washington Utilities and Transportation Commission (UTC) issued a policy statement requiring utilities to include IRA and Infrastructure Investment and Jobs Act (IIJA) considerations in their integrated resource plan (IRP) filings. This includes updating IRP assumptions to incorporate IRA tax credits and identifying transmission needs that qualify for IRA programs. To incentivize this, 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) required Georgia Power (GPC) to investigate federal funding opportunities before its 2025 IRP. The investigation must cover behind-the-meter opportunities for distributed energy resources, energy storage systems, demand side management, grid-enhancing technologies, and funding from the IRA and the Title 17 Energy Infrastructure Reinvestment (EIR) Clean Energy Financing Program.
• The Oregon PUC integrated the Energy Infrastructure Reinvestment (EIR) program into the procurement process for Portland General Electric (PGE). The PUC mandated that all bids be submitted both with and without EIR financing to quantify potential savings and instructed PGE to develop an EIR project application in 2024. The PUC also indicated that these efforts would be considered in future rate cases during prudency determinations.
• In states without a formal IRP process, the New Jersey Board of Public Utilities (NJBPU) has integrated IRA funding into clean energy program design. The NJBPU held a technical conference in December 2023 and issued 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 electrification and efficiency goals, specifically targeting affordability for low-income homes.

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} }