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APRIL 9, 2008

Federal Energy Subsidies and Support Double between 1999 and 2007

Total Federal energy-specific subsidies and support to all forms of energy are estimated to have reached $16.6 billion for fiscal year (FY) 2007, according to Federal Financial Interventions and Subsidies in Energy Markets 2007, released today by the Energy Information Administration (EIA).

This amount is more than double the level, in real terms (2007 dollars), of the estimated $8.0 billion shown in the last EIA report on subsidies completed in May 2000.

Tax expenditures, one of four types of subsidies examined in the report, have more than tripled since 1999, rising from $3.2 billion in 1999 to more than $10.4 billion in 2007.

This report, which was undertaken at the request of Senator Lamar Alexander, shows that Federal electricity subsidies and support per unit of production (dollars per megawatthour) varied widely by fuel in FY2007. Coal-based synfuels (refined coal) that are eligible for the alternative fuels tax credit, solar power, and wind power received the highest subsidies per unit of generation, ranging from more than $23 to nearly $30 per megawatthour of generation.

The smallest subsidies on a per unit basis were for coal, natural gas and petroleum liquids, and municipal solid waste, all at less than $0.45 per megawatthour of generation.

Federal Financial Interventions and Subsidies in Energy Markets 2007 can be found on EIA’s web site at:

The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy. The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.

EIA Program Contact: Robert Schnapp, 202/586-5114; Tom Leckey, 202/586-3548
EIA Press Contact: National Energy Information Center, 202/586-8800



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