NOTICE – Requests to Fed. for ITC Guidance

This posting is to provide prospective bidders to the RIE OSW RFP information on a recently published letters to the US Department of the Treasury. This letter was issued from numerous U.S. Senators, seeking clarification and guidance for offshore wind developers on the treatment of such offshore wind assets qualifying for investment tax credits (“ITC”). Linked below is the letter for reference. It has also come to the attention to the RIE Team that

US Senators Letter to Dept. of the Treasury

RIE highly recommends prospective bidders consider and address language found in the RI OSW RFP Section 2.2.4.2.2 (b), under the section “Additional Pricing Conditions”, describing Bidder obligations in relation to the availability of tax credits or other such government grants and subsidies. Responses to this and other such pricing conditions shall be addressed through the submission of Appendix A, with Section 5 of Appendix A specifically focusing on how bidders will handle changes in the availability of tax credits to the benefit of customers.

Specifically, as found in Section 2.2.4.2.2(b): “Bidders must address how they would consider Rhode Island Energy customers in the event of the availability or receipt of any tax credit or other government grant or subsidy not contemplated in their proposals. Bidders must state their assumptions regarding the availability of federal or state tax credits, subsidies, or grants or other incentives, including but not limited to those available under the Inflation Reduction Act of 2022. If a bidder assumes that such credits, subsidies, grants or incentives will not be available for its Eligible Facility, it should state how it would propose to share the benefits of those credits, subsidies, grants or incentives with Rhode Island Energy’s customers if they subsequently become available. Bidders may propose adjustments to the contract price based on an increase in any state or federal tax credit or other government grant or subsidy.”