The U.S. Government Accountability Office (GAO) has issued a report on federal subsidies to electricity, estimating funding for electricity related research and development (R&D), tax expenditures for subsidizing electricity production, as well as other government support for electricity.
 
The GAO finds that subsidies and tax expenditures have increased over the 2002-07 period examined. Subsidies for R&D increased from USD1.6 billion in 2002 to USD2.2 billion in 2007. Total support to R&D amounted to USD11.5 billion over the six-year period.
 
Nuclear programs were the largest beneficiaries of electricity-related R&D subsidies, totaling USD6.2 billion over 2002-07. Fossil fuel programs were next in line, receiving USD3.2 billion over the same period, followed by renewable programs, which appropriated USD$1.4 billion.
 
Revenue loss from tax expenditures increased even more sharply, by 88 percent over the six-year period. Tax expenditures related to electricity totaled USD18.2 billion, with the largest share of support going to fossil fuels (USD13.2 billion from 2002-07).
 
Other federal subsidies identified in the report include low-cost financing to power entities, loans and loan guarantees to rural electric cooperatives at low rates through the Department of Agriculture, and limits on nuclear power plant operator liability for accidents which reduce insurance coverage needs.
 
Federal Electricity Subsidies: Information on Research Funding, Tax Expenditures, and Other Activities That Support Electricity Production is available on-line at: http://www.gao.gov/new.items/d08102.pdf