LPPC and APPA Provide Legislative & Regulatory History of Private Use Rules to Treasury: Urging Targeted Exception & Guidance for Public Power
LPPC and the American Public Power Association (APPA) have submitted a joint comments to the U.S. Department of the Treasury urging targeted updates to outdated private business use regulations that limit public power utilities' ability to finance critical infrastructure with tax-exempt bonds.
The organizations propose two focused regulatory changes:
(1) A new exception under Treasury Regulation section 1.141-7(f) for output contracts from the current three year limit to up to 20 years with qualified large retail customers exceeding 20 megawatts or 10 percent of the utility's peak demand within seven years. and
(2) issuing long-overdue guidance implementing IRC Section 141(d) so public power utilities can more readily use tax-exempt financing to acquire privately owned generation serving their communities, consistent with congressional intent.
Together, these reforms would better support growing electricity demand while protecting ratepayers and preserving access to tax-exempt financing.
