March 25, 2019

Sarah Hunt to Texas lawmakers: Price distortions in the electricity sector are caused by many federal tax incentives, not just one

By Jacqueline Isaacs

Lawmakers in Texas are currently considering a bill (HB 2908) that would task the Public Utility Commission of Texas to study the distortion in electricity pricing in their state and deliver a report to the Texas Legislature detailing the specific impact of the federal Production Tax Credit.

Rainey Center co-founder and CEO, Sarah Hunt, has submitted comments to the Committee on State Affairs, in the Texas House of Representatives, and its chairman, Dade Phelan (R-Beaumont), explaining why taking such a “technology specific approach” may have “negative unintended consequences.”

“Singling out one particular energy source, like wind power, while ignoring the reality that other energy sources are also subsidized at the federal level is 'picking winners and losers' in reverse,” she said. “Penalizing one energy source for receiving federal incentives while ignoring the subsidies received by other energy sources will exacerbate the problem HB 2908 seeks to solve.”

Read Ms. Hunt’s full comments here.

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