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Electric Generation Transition Aid

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Electric Generation Transition Aid is available to counties, cities, towns, and school districts when an electric generating plant owned by a public utility retires.

Eligibility

Local jurisdictions with electric generating units that were retired after 2016 are eligible to receive aid. Public utilities report unit retirements to the Department of Revenue and we determine eligibility and certify aid.

Aid Calculation

Jurisdictions where the tax capacity of electric generating property is greater than 4% of the jurisdiction’s total tax capacity will receive an initial aid amount equal to the reduction in tax capacity resulting from the retired units, multiplied by the local jurisdiction’s tax rate in the year before the retirement.

In each subsequent year, the aid amount will decrease by 5% of the initial aid until it is below $5,000, at which point, the aid will be zero.

Jurisdictions will also stop receiving aid when their current total net capacity becomes larger than 90% of their tax capacity before the retirement, multiplied by the state’s tax capacity growth ratio.

We will calculate and certify the initial year of aid payments on or before May 1 of the year the aid is payable. For subsequent years, we will calculate and certify the aid on or before August 1 of the year prior to aid payment. Aid payments are made on July 20 and December 26 each year.