In the final hours of the 2012 fiscal cliff negotiations, the now 20-year old wind production tax credit (PTC) was granted a 1-year extension at the estimated cost of $12 billion. [1] This move was done behind closed doors, without debate or opportunity for amendment and no obligation of the Congress to find a way to pay for it.
With this most recent extension of the PTC, the Congress took no action to address the harmful effects [2] of the PTC on competitive wholesale energy markets.
The PTC is set to expire on December 31st. Until this long postponed day, the legislative opportunity is for the Congress to amend the flawed tax provision to relieve market distortions [3] and promote more reliable, least-cost renewable choices for taxpayers.
Market Signals That Work
Nearly two decades ago, electric energy markets in most of the U.S.…