|
New Federal Responsibilities
Will Reshape the Energy Landscape
WASHINGTON,
DC, August 5, 2005 –
In light of the passage of the Energy Policy
Act of 2005, and in anticipation of the President's signing
of the legislation in New Mexico next week, ICF Consulting
released a series of issue papers for energy market participants
and the regulatory community providing perspective on
the impacts of the Act.
These papers assess implications
of key provisions of the Act on utility mergers, petroleum
markets, the siting of new energy facilities, nuclear
power, electric transmission, renewable energy, and
energy conservation. All of the papers can be found
on-line at: www.icfi.com/energyact.
|
|
"This new law, while not addressing every aspect of energy markets,
certainly cuts a wide swath across this critical industry.
Every major component of the U.S. energy infrastructure,
from oil and
gas development to electric
transmission and
energy
efficiency, is affected,” says Philip Mihlmester,
ICF Consulting Senior Vice President.
The implications of the Act’s passage are substantial,
including:
- The repeal of the Public Utility Holding Company
Act (PUHCA) and the requirements for enhanced reliability
and national grid monitoring likely will be a catalyst
for further utility consolidation—potentially increasing
the number of mergers.
- Even though the Act provides incentives
for the production of more domestic oil that may increase
supply, there will nonetheless be an increasing dependence
on imported petroleum.
- Jurisdiction and authority in electric
power will shift strongly to the U.S. Federal Energy
Regulatory Commission (FERC) and U.S. Department of Energy
(DOE).
- Loan
guarantees and investment tax credits will encourage
the development of new clean-coal and nuclear facilities.
- The
requirement for common reliability standards and for
the identification of key transmission corridors will increase
the level of transmission investment and promote the consolidation
of the industry.
- Production tax credits for renewable energy
projects on line by the end of 2007 will accelerate the
development of such projects.
- The Act’s energy efficiency provisions
will stimulate the conservation of substantial amounts
of energy and fuel.
- The first few clean-coal and gasification projects
will be in a strong position to come to fruition by virtue
of the direct grants and loan guarantees provided in
the Act.
"Energy market participants and the regulatory community
will need to move quickly to reflect these new incentives
in their strategic planning," says Jeanne Townend, ICF
Consulting Senior Vice President.
"The Act’s central
approach is to provide financial and other incentives rather
than 'command and control' regulation to industry participants
and consumers," adds Elliot Roseman, ICF Consulting
Vice President. "In addition to incentives for traditional
industry players, it provides a broad range of incentives
for energy conservation and renewables, and billions of dollars
for research and development on new technologies. It is a
'let one hundred flowers bloom' approach," says
Mr. Roseman.
|
ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.
|
For Immediate Release
Contact: Douglas Beck
1.703.934.3820
|
|
