The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Violent extortion in France... Date:  12/11/2018  10:53 PM
Author:  waterfell Number:  548976 of 573299

There is a big difference between a Production Tax Credit and a federal loan guarantee. The PTC is obtained whenever power is produced, for the period the PTC is in effect. A loan guarantee is only paid out if the project goes into default or bankruptcy. The Vogtle project has not defaulted. Therefore the loan guarantee has not been paid out.

The Vogtle project has not received $8 billion in "subsidies" as the poster describes. It is possible that Southern Co. has obtained a slightly lower interest rate on the insured loan. Many renewable energy projects have also obtained those sort of loan guarantees, in accordance with the Energy Policy Act of 2005.

- Pete
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us