Full Title: Retail Electricity Rates Under the Inflation Reduction Act of 2022
Author(s): Nicholas Roy, Dallas Burtraw, and Kevin Rennert
Publisher(s): Resources for the Future
Publication Date: August 10, 2022
Full Text: Download Resource
The Inflation Reduction Act of 2022 (IRA), released on Wednesday, July 27, 2022 by Sen. Schumer (D-NY) and Sen. Manchin (D-WV), contains an extensive set of provisions to promote clean energy technologies, facilitate domestic energy production, and address climate change. The proposed legislation contains many elements that have been considered and discussed in previous RFF analyses, though the details have evolved.
In light of the legislation’s title, a key question is how the energy and climate provisions will affect energy prices. To examine effects on the crucial electricity sector, RFF deployed the Haiku Electricity Market Model to project electricity retail rates for a range of potential scenarios that account for variability in future fuel prices, capital and technology costs, and uptake of specific provisions of the legislation.