United States

United States

Exelon slams AWEA PTC proposal

UNITED STATES: Exelon, the power company recently expelled from the American Wind Energy Association (AWEA), has labelled the trade body's proposal for phasing out the production tax credit (PTC) as completely unacceptable.

Exelon Corporation, which was expelled from the industry group for its public anti-PTC stance, said AWEA’s proposal amounts to a six-year extension of the incentive at or near its current $0.022/kWh value.

AWEA’s plan calls for a 100% credit for projects that begin construction next year, then a gradual ramp down to 60% of the current level before ending in 2019.

Joseph Dominguez, Exelon’s senior vice-president for government and regulatory affairs, said: "AWEA's proposal should be viewed by Congress as a non-starter for any phase-out discussion.

"We are especially disappointed by this proposal, given that AWEA previously indicated that a two-year extension would suffice."

Exelon, which operates the largest nuclear fleet in the US and just over 1GW of wind, argues that the industry has matured and no longer needs the PTC. It believes the subsidy distorts electricity markets and creates artificially low power prices that hurt Exelon’s bottom line.

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