Renewable Energy: Why Tax Incentives Are Essential And Should Be Continued

The renewable energy industry has made great strides over the past few years. Growth has been in the double digits, with the benefits flowing to developers, investors, manufacturers, and the public.  The availability of capital for projects has been accompanied by rapid decreases in costs for wind and solar technologies.  The result?  Renewable energy is making strides toward being an affordable alternative to traditional energy sources.  Although nuclear, coal and gas generation still form the bedrock of American energy supply, in light of the push by regulators and the public to require use of renewable energy, reducing the cost of renewable energy sources will not only benefit the climate, but could minimize hikes in energy prices resulting from the imposition of renewable requirements.     Continue reading

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Wind Cooperative of the Year

The Department of Energy will honor one electric cooperative that has exhibited leadership in the production of wind power this year.  It is now accepting nominations for the Wind Cooperative of the Year Award.

Eligibility:
All cooperatives that are members of the National Rural Electric Cooperative Association are eligible for nomination and award.  There is no cost for nomination.

Nomination and Award:
To nominate a cooperative for the award, click here.  Entries will be judged in four areas:

  • Corporate leadership
  • Innovative marketing
  • Benefits to customers
  • Project creativity

For more information, click here.
Past award recipients are listed here.

Good luck to all nominees!

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Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Recent documents released from the IRS and the U.S. Department of Treasury show increased scrutiny on Treasury’s 1603 Cash Grants in Lieu of Energy Tax Credits program.  The program has awarded a significant amount of money to renewable energy project owners.  From September 1, 2009 through September 9, 2011, the 1603 program issued around $9 billion to 20,000 projects.  This large government expenditure has put an equally large responsibility on the Treasury department to ensure the funds are used correctly. Continue reading

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Posted in Energy Construction, Energy Project Development, Renewable Energy, Renewable Energy Incentives, Section 1603 Grant | Tagged , , , , , , | Leave a comment

AHC Attorney David Cook to Present on Energy Savings Projects at GlobalCon 2012 Energy Conference

AHC attorney David R. Cook will speak at the Association of Energy Engineers’ GlobalCon 2012 conference in Atlantic City. He will discuss issues related to Energy Efficiency and Energy Savings Projects. Energy savings projects present complicated construction issues for owners, contractors, and other project participants. In this seminar, David will focus on using energy savings performance contracts and other means to finance the construction costs of energy savings projects. David also offers instructional in-house seminars for companies or groups interested in energy savings projects.

More information about GlobalCon 2012 is available here.  To read more about AHC’s Energy Construction Practice Group, click here.

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Leading Broadband over Power Line Provider Closes its Doors

Broadband over power line (BPL) technology is designed to use existing power lines to provide broadband Internet access to businesses and consumers.  In the early 2000s BPL was promoted by providers as a viable alternative to DSL and cable broadband offerings, especially in rural areas where there was no other means of broadband access.  Although FCC put BPL on the fast track, the amateur radio community was strongly opposed to BPL on the basis that BPL equipment would interfere with the amateur radio wave bands.  The FCC rules have been the subject of petitions and court proceedings, and nine years after the FCC initiated the rulemaking process, the process still continues.  Continue reading

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Drafting Agreements for Smart Meter Projects

Many electric cooperatives are currently in the process of considering or moving forward with advanced metering infrastructure projects.  AMI projects are complex and require consideration not only of purchase and installation issues, but also of maintenance, warranties, and long-term performance requirements.  Also, because key components of the equipment and software required often come from different vendors, sophisticated project management is required to coordinate and ensure completion of required integration and interfaces.  To ensure that all parties’ objectives are met, a thorough and balanced AMI agreement should be developed that documents project requirements and expectations. Continue reading

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Georgia Supreme Court Rejects Constitutional Challenge to Statute of Limitations Benefitting Electric Cooperatives

In the context of reviewing the viability of landowners’ nuisance claims against a Georgia electric cooperative, the Supreme Court of Georgia in Daniel v. Amicalola EMC recently rejected the landowners’ constitutional challenge to the one-year statute of limitations for rights of action resulting from an electric cooperative’s acquisition of an easement or use of the land of others.   The court found a rational basis for the statue arising from the origin and nature of electric cooperatives.     Continue reading

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Substantial Changes To Required Credit Notices to Consumers

Some electric cooperatives consider consumers’ credit scores in reviewing their applications for electric service.  Cooperatives that sponsor financing programs for their members may review members’ credit scores as well.  The Federal Trade Commission and Federal Reserve Board recently made changes to the Risk-Based Pricing Rule (the “Rule”) that will now require cooperatives to disclose credit score information to consumers and members in certain situations. Continue reading

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IRS Confirms the Propriety of Discounting Capital Credits

The latest AHC Cooperative Taxation Brief discusses the Internal Revenue Service’s recent private letter ruling that confirms its long-held stance on discounting capital credits.  The ruling makes a number of key points that deserve revisiting.  This is especially true in light of lawsuits challenging cooperatives’ capital credit practices, including discounting of capital credits.  Click to read the latest AHC Cooperative Taxation Brief

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Posted in Capital Credits, Cooperative, Cooperative Law Education, Cooperative Litigation, Cooperative Taxation, Member Relations | Tagged , , , , , | Leave a comment

Treasury Identifies Ineligible Costs Under Section 1603

The Treasury Department is vested with the authority to review and approve applications for funding by the Section 1603 grant program.  In completing such applications, applicants should consider the key areas of concern and past rejection by the Treasury Department.  In addition, a recent Chief Counsel Attorney Memorandum explains that the Internal Revenue Service will retain authority to audit Section 1603 grants because excess grants result in understated income.  Applicants should review their applications in light of the Treasury Department’s initial review and possible audit by the IRS. Continue reading

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Posted in Energy Construction, Energy Project Development, Renewable Energy, Renewable Energy Incentives, Section 1603 Grant | Tagged , , , , , , , | Leave a comment