The Inflation Reduction Act: Impacts on Utilities and Power Producers

Abstract

The Inflation Reduction Act (IRA) was passed by the 117th U.S. Congress on August 16, 2022 and signed into law by President Joe Biden. The wide‐ranging Act invests in domestic energy production and manufacturing, funds energy and climate provisions to reduce greenhouse gas (GHG) emissions, and contains sweeping healthcare reforms, among other new policies. The IRA contains a myriad of benefits across the energy sector for companies and customers alike. This article describes the financial and environmental benefits of the energy and climate provisions of the Act, with a focus on the impacts to electric utilities, natural gas utilities, and independent power producers (IPPs).