US ENERGY POLICY ACT OF 2005 SPURS CAPITAL INVESTMENT
The Energy Policy Act of 2005 will have an immediate and long-lasting impact on the US power business. Through its numerous financial incentives, mandates, rule changes, and realignment of authorities, the Act promotes the adoption of specific supply- and demand-side options by businesses and consumers. The Act will
- broaden ownership of the power business through the repeal of the Public Utility Holding Company Act; this removes a major barrier to mergers and acquisitions involving utilities
- stimulate fuel diversity and technological innovation with financial incentives that cut busbar costs of advanced nuclear, integrated gasification combined-cycle, and wind power plants by one quarter to one third
- spur investment and infrastructure modernization with mandatory reliability rules and financial incentives for transmission investment
- sustain the long-term trend of declining electricity intensity with provisions to improve end-use efficiency, as well as initiatives to extend time-based rates to all retail customers; this is a new policy at the federal level"
