Because of the energy bill …
FERC has granted PacifiCorp’s request for certification for a renewable energy production tax credit for efficiency improvements due to additional capacity for the Klamath Hydroelectric Project. This is the first time the Commission has issued such a certification.
Section 45 of the Internal Revenue Code of 1986 provides a renewable energy tax credit to owners or operators of electric generation facilities that produce electricity from qualified energy resources at qualified facilities placed into service by specified dates. Section 1301 of EPAct amended section 45 to apply the tax credit to incremental production gains from efficiency improvements or capacity additions to existing hydroelectric facilities placed into service after August 8, 2005, and before January 1, 2008.
PacifiCorp provided information to the Commission regarding efficiency improvements at its Klamath Hydroelectric Project that went on line November 8, 2005. The Commission found a 2.6 percent increase in efficiency resulting from a runner-replacement project.
In the Commission’s order providing the necessary certification for the renewable energy production tax credit, Commissioner Suedeen Kelly noted that “Section 1301 of EPAct 2005 recognizes hydroelectric power’s important role in meeting this country’s energy needs, by promoting the development of new hydroelectric resources. It is my hope that today’s order encourages more owners or operators of hydroelectric facilities to follow suit and seek renewable energy production tax credits for qualified projects.”