‘A 10% increase in electricity costs’: Valadao, Fong warn against this repeal

FRESNO, Calif. (KSEE/KGPE) – Two Central Valley representatives have joined a dozen other House Republicans to protect clean energy tax credits; if repealed, they say it could dramatically increase electricity costs.

In a May 8 letter to Chairman Jason Smith, David Valadao, Vince Fong, and other members of Congress expressed their support for the preservation of renewable energy incentives, including the Clean Electricity Investment Tax Credit (ITC) and the Clean Electricity Production Tax Credit (PTC).

They say the incentives are a four-fold solution: “advancing American energy independence, spurring domestic manufacturing, reducing electricity costs for families and businesses, and strengthening U.S. competitiveness at a time of significant electricity demand growth.”

These two credits give taxpayers a discount for choosing clean energy alternatives, such as wind and solar, over fossil fuels like oil and natural gas. Incentives like these not only help reduce potential pollution and keep people healthier, but they also reduce the financial burden to American consumers at a time when “U.S. electricity demand [is] hitting levels not seen in 40 years.”

The letter says industry projections forecast the ITC and PTC will deliver approximately $45 billion in ratepayer savings through 2031. However, if repealed, it “would result in a 10% increase in electricity costs for consumers by 2026.”

In addition to driving down costs, the representatives say the provisions would advance American energy independence and bolster President Trump’s policy on reducing reliance on foreign energy sources – the America First energy agenda.

They say the ITC and PTC are also crucial for the country to remain “the premier destination for advanced manufacturing, data centers, and other industries,” especially now, in the time of an “intensifying global energy race.”

Such energy independence can only be attained with domestic manufacturing, a marriage which they say would create “countless high-quality jobs across the nation.”

The full letter can be found here.