UTILITY ECONOMIC DEVELOPMENT INCENTIVES

Most electric utility companies offer incentives and some gas only utility companies also offer incentives. In States with multiple utility companies not each utility in that state may offer incentives for locating to or expanding within their service territory.

Incentives offered by utility companies vary widely with most having terms ranging from 2 - 5 years, with a few incentives lasting more than 5-years. Most rate discounts depreciate over their term and most have minimum kW or kWh requirements determined by new load or incremental load increases over the prior year. The kW demand requirements can range as low as 10 - 25 kW while the majority of the utilities require a total demand of 200 kW or more to qualify with some requiring as much as 1,000 kW.

In the case of facility expansions, an increase over the prior year’s use, known as incremental load, must meet a minimum increase over the prior year which is the basis of the credit. In some rare cases utilities are permitted to negotiate “Off Tariff” rates with customers.

Many utility economic development riders are linked to the creation of new full time jobs or the approval of State or local economic development incentives to receive the discounted rate.

Example

In Rochester New York, for instance, a company locating there can apply for a 20-year tax abatement and if approved be exempt from any taxes for the first 10-years then the tax rate ramps up over the next 10 years.
In addition the local utility, Rochester Gas and Electric (RGE) offers a Capital Investment Incentive Program which provides grants for electric infrastructure improvements required for major capital investment in plant or equipment. There is a minimum incremental demand threshold of 100kW and a minimum capital investment $1 million.

When energy efficiency upgrades are designed into the project, additional incentives may be provided through the Business Energy Efficiency Assistance incentive program offered by State of New York and NYSEG. This program is similar to a number of state and utility energy efficiency programs.

New York also offers a reduced electric commodity incentive for capital intensive and job creating projects by allocating a traunche of electricity from New York Power Authority hydro power if the facility is located in the Empire Zone Incentive area. This results in further reductions from the standard tariff rate on businesses’ kWh and Therm usage for the new load.

A Utility Companies requirements to qualify for their economic development rates vary significantly in the how and to what extent the discount is applied, the term of the discount, and its’ value to the business. The characteristics of each program also vary significantly and must be considered along with the more typical state and local economic development incentive programs

AL	Alabama Power	2-Years 1,000 kVa with a 10% monthly credit year 1 & 5% year 2.
AR	Entergy	New service in a 6-month vacant space 2-year term rate reduction.
FL	Duke Energy	New or existing vacant space =>50 KW 50% load factor 15-FTE's or =>$200,000 investment. ED =>500 kW 50% load factor =>25 FTE's =>$500,000 investment 5-year term @ 50% 1-year & ratcheting down over term.
FL	Florida Power & Light	New or existing 4-year term begins @ 20% reduction ratcheted down over term.
FL	Gulf Power	aka A Southern Company Vacant Building Tariff
GA	Georgia Power	Discount monthly bill=>100,000,000 kWh discount 0.0891¢ all kWh usage <100,000,000 discount 0.0372¢ kWh use reduction.
IA	Alliant Energy	5-year term maximum with discount amount approved by Iowa Utilities Board.
IA	Alliant Energy aka Interstate Power & Light	Discount applied on a case by case basis.
IN	American Electric Power (AEP)	New or existing expansion =>10-FTE's billing demand reductions.
IN	Duke Energy	New or existing expansion =>1,000 KW 10-FTE's/1,000 KW & =>$1M investment, new KW demand =>$8M investment/1,000 KW demand =>25 FTE/1,000 KW demand. Redevelopment 4-year term beginning at 50% ratcheted down over term.
IN	Nipsco	Demand =>100 KW new or existing expansion 10-FTE's 5-year term reduction ratcheted down over term beginning at 40%.
KA	KCP&L	New or existing expansion industrial and commercial not selling or providing goods to the general public =>200 KW 2-years. Urban Core Redevelopment commercial or industrial, 4-year term beginning at 25% ratcheted down over term.
KY	American Electric Power (AEP)	New or existing expansion =>500 KW =>25-FTE's 10-year term where rate was factor to locate or remain in service territory.
KY	Duke Energy	New or existing expansion =>1,000 KW 10-FTE's/1,000 KW & =>$1M investment, new KW demand =>$8M investment/1,000 KW demand =>25 FTE/1,000 KW demand. Redevelopment 4-year term beginning at 50% ratcheted down over term.
KY	LG&E and KU-ODP (PP&L Company)	Brownfield Development =>500 kVA, new customers =>1,000 kVA, existing customers =>1,000 kVA increase FTE’s 1-year 50% credit ratcheted down over term.
LA	Entergy	New or existing expansion =>500 KW FTE's equate percentage of reduction over the 10-year term.
MD	Mon Power aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
MD	Potomac Edison aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
MD	BG&E (Exelon)	KW demand except monthly demand charges 5-year term 40% reduction ratcheted down over term.
ME	Central Maine Power	Incentive contributing factor for decision to remain & expand =>20 kW increase kWH usage 10% or 10-FTE's.
MI	American Electric Power (AEP)	New or existing expansion =>1,000 kVa additional demand =>10-FTE resulting from business growth.
MN	XcelEnergy	Area Development Zones =>2MW manufacturing or wholesale must qualify for government incentives. Existing or proposed industrial park =>10-acres 5-year term 50% 1-year ratcheted down over term.
MN	Alliant Power aka Interstate Power & Light	Discount applied on a case by case basis.
MO	KCP&L	Customer additional facility projected => annual load factor with in 2-years, 5-year term 30% 1-year ratcheted down over term.
MS	Entergy	New or existing customers =>500 KW >1 FTE, percentage reduction tied to FTE amount 5-year term 20% 1-year ratcheted down over term.
NC	Dominion Power	New or existing expansion commercial & industrial significant new Qualified Billing Demand.
NC	Duke Energy aka Progress Energy	New or existing expansion =<1,000 KW 75-FTE's per 1,000 kW investment =>$400,000 per 1,000 kW 4-year term 20% 1-year ratcheted down over term. ER 35 FTE's per 500kW investment $200,000 per 500 kW 50% 1-year.
NJ	JCP&L aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
NJ	Atlantic City Electric	Redevelopment Program 20% reduction 5-year term distribution demand charge of kWh's vacant space =>8,000 Sq. Ft. =>2-FTE's.
NJ	O&R Utilities	Job Development new or expanding 20% reduction delivery charges 5-year term =>1 FTE.
NJ	PSE&G	Area Development Service, new or existing in targeted UEDZ towns new =>25 KW, existing =>50 KW increase of 125% prior year $2.88 credit KW Demand 1-5Years, 6-7 years 50% of previous credit.
NY	NYSEG & RG&E	10-year term credits for KW or kWh, utility infrastructure investment =<$400,000 new facilities with existing others in territory =>100 KW $1M investment. Brownfield Redevelopment => $500,000 per project for vacant buildings & electric related improvements.
NY	O&R Utilities	New or existing expansion =>65 KW 5-year term 20% discount delivery portion 5-years.
OH	Ohio Edison aka First Energy	New or existing expansion 5-Year Term =>100 KW =>5-10-FTE governs credits.
OH	The Illuminating Company aka First Energy	New or Existing 5-Year Term =>100 KW 5-10 or more FTE's governs credits.
OH	Toledo Edison aka First Energy	New or Existing 5-Year Term =>100 KW 5-10 or more FTE's governs credits
OH	Duke Energy	New or existing expansion =>1,000 KW 25-FTE's per 1,000 kW investment $1M per 1,000 kW. Urban Renewal vacant building =>2-years =>25,000 Sq. Ft. =>500 kW. Brownfield Redevelopment 8-year reduction 5-year term, 1-year 50% ratcheted down over term.
OK	OG&E	Commercial or industrial 2-year month to month basis @ term end, 10-year service contract, =>1,000 KW Oklahoma Department of Commerce approved Incentive Program 1-year 35% ratcheted down over term.
PA	Met-Ed aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
PA	Penelec aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
PA	Penn Power aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
PA	West Penn Power aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
PA	PECO	aka Exelon New or existing expansion =>350 kW =>10-FTE’s. Brownfield =>100 kW 15% credit of the VDC. Competitive Alternative sustained 1 MW increased load for 3-months or =>1MW 5-year term.
SC	Duke Energy	Demand =>1,000 KW 75-FTE's per 1,000 kW investment $400,000/1,000 kW 4-year term -year @ 20% ratcheted down over term. Redevelopment 35-FTE's per 500 KW investment of $200,000/500 kW 50% 1-year.
SC	SANTEE	New or existing expansion =>1,000 KW; 75 FTE's or $1,000,000 investment with =>1 FTE.
VA	American Electric Power (AEP) Appalachian Power	New or existing expansion =>1,000 kW >1 FTE. Urban Redevelopment =>2-year vacancy =>2-year term 30% reduction. Brownfield Redevelopment =>2-Year vacancy 5-year term 35% reduction.
VA	Dominion Power	New or existing customers commercial and industrial customers with significant new Qualified Billing Demand.
WI	Alliant Energy	New or existing expansion 5-year term with options outside Wisconsin.
WV	Mon Power aka First Energy	Freeze base distribution rates through May 31, 2019 and low-income customers during the three-year term of the plan.
WV	Potomac Edison aka First Energy	Freeze base distribution rates through May 31, 2019 & low-income customers during the three-year term of the plan.

See other Utility High Load Factor Incentives