John Kartch

Oregon Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 1:12 PM PERMALINK

If Wyden and Merkley enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Ron Wyden and Jeff Merkley hike the corporate income tax rate, Oregon households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least six Oregon utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Public Utility Commission of Oregon, Avista Utilities, Pacific Power, Idaho Power, Cascade Natural Gas Corporation, Avion Water Company, Inc. and Northwest Natural passed along tax savings to their customers.

Avista Utilities: As noted in this February 11, 2019 Public Utility Commission of Oregon document

As explained in more detail below, the Company is requesting a rate decrease of $3,708,000 or 4.2%, effective March 1, 2019. 

The primary purpose of this filing is to pass back the 2018 deferred portion of the benefits attributable to the revisions of the federal income tax code caused by the enactment of the Tax Cuts and Jobs Act signed into law on December 22, 2017. Per discussions with Commission Staff, the Company is requesting less than statutory notice to begin returning the deferred tax benefits of $3.708 million to customers over a twelve month period effective March 1, 2019 to February 29, 2020.

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A residential customer using an average of 47 therms a month could expect their bill to decrease by $2.18 or 4.3%, for a revised monthly bill of $49.02 effective March 1, 2019.

Pacific Power: As noted in this January 29, 2019 Gorge County Media excerpt:

Following through on a pledge made when the Tax Cuts and Jobs Act became law in late 2017, Pacific Power’s 550,000 customers in Oregon will see a decrease in their bills starting Feb. 1, 2019.

Under the tax cut-related reduction, as approved by the Oregon Public Utility Commission, residential customers in Oregon will see a bill decrease of approximately 3.8 percent. A typical Oregon residential customer using 900 kilowatt hours of electricity per month will see their bill drop from about $98.52 to about $94.40 per month after Feb. 1. Commercial and industrial customers in the state will see reductions ranging from 3 percent to 4 percent depending on the customer classification.

Northwest Natural: As noted in this October 30, 2018 Portland Business Journal excerpt:

A NW Natural spokeswoman said rates also reflect savings from the Tax Cuts and Jobs Act, which cut the corporate tax rate from 35 percent to 21 percent. It's standard regulatory practice in Oregon for rates to incorporate shifts in the tax burden companies face, up or down

Idaho Power: As noted in this December 29, 2020 Public Utility Commission of Oregon document:

On May 30, 2018, the Commission issued Order No. 18-199 approving a Term Sheet agreed to by Idaho Power, Staff, and the Oregon Citizens' Utility Board, collectively "Parties", that quantified the cost-of-service benefits of the 2017 Tax Act and the 2017 Tax Act impacts associated with the North Valmy power plant levelized revenue requirement. The Parties agreed that the annual Oregon-jurisdictional tax benefits of $1,483,736 are a reasonable quantification of all tax benefits resulting from the 2017 Tax Act for 2018 and 2019. Further, the Parties agreed that the annualized tax benefits will remain in customer rates through May 31, 2020, to provide customers with a full 24-month benefit period associated with 2018 and 2019 tax benefits. In order to facilitate this ratemaking treatment, the Company agreed to request reauthorization from the Commission of the Oregon jurisdictional tax reform benefits authorized in UM 1928. 

On December 23, 2019, Idaho Power filed with the Commission a request to update the quantification of Tax Reform benefits to be included in customer rates beginning June 1, 2020. On May 5, 2020, the Commission issued Order No. 20-148, approving Idaho Power's quantification of $1,519,887 in annualized Oregon jurisdictional benefits associated with Tax Reform and adjusted customer rates to reflect amortization of the Tax Reform benefits effective June 1, 2020. This amount will remain in customer rates until Idaho Power's next general rate case or other proceeding where the then current tax expenses and other tax related revenue requirement components are reflected in rates. 

Cascade Natural Gas Corporation: As noted in this September 12, 2019 Public Utility Commission of Oregon document

The parties agreed the Company would return a total of $1.4 million to rate-payers over a 12 month period beginning November 1, 2019. This amount is inclusive of all remaining interim Tax Act benefits and is comprised of $1.2 million dollars for the 2018 deferral period and $200 thousand dollars for the January - March 2019 deferral period. 

Avion Water Company, Inc.: As noted in this March 1, 2021 Public Utility Commission of Oregon document

In 2017, the 115th United States Congress passed H.R.1 – Tax Cuts and Jobs Act (H.R.1or Act). The Act was signed into law on December 22, 2017 by President Donald Trump, with most provisions going into effect on January 1, 2018. The Act contains provisions that impact regulated utilities’ federal tax obligations, including a reduction in the corporate income tax rate and the treatment of Contributions in Aid of Construction (CIAC) for water utilities. On March 1, 2018, Staff filed its initial Application for an order authorizing deferred accounting to track the impact, for later ratemaking treatment, of the Tax Act for the twelve month period beginning March 1, 2018. On February 28, 2019, Staff submitted an application for reauthorization to defer these amounts, and again on March 2, 2020, Staff submitted an application for reauthorization of the deferral. These applications were approved by the Public Utility Commission of Oregon (Commission) on November 19, 2020 in Order No. 20-443. The ratemaking treatment for these deferrals is addressed in Avion’s most recent general rate case, Docket UW 181, Order No. 20-488.

This filing is Staff’s application for reauthorization to continue deferring amounts related to the tax benefits associated with the TCJA. While most of the issues associated with TCJA benefits were addressed in Order Nos. 20-443 and 20-488, there is a narrower subset of tax benefits associated with CIAC that require a continued deferral, as described below, to ensure future ratemaking treatment for tax benefits and obligations not currently reflected in rates.

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Staff requests to defer, for later ratemaking treatment, certain CIAC-related tax benefits associated with the Act. The Act resulted in the taxability of CIAC for water utilities, which was not present prior to the Act. The CIAC-related tax obligation will be due to the taxing bodies for the year in which the CIAC is assumed, and will be paid along with other taxes paid for the year in which the CIAC is received. Also beginning in that year, and then for each year over the tax life of the asset, water utilities will claim the tax depreciation of the CIAC assets, which functions as a deduction to the utility’s taxable income (CIAC Tax Benefits). The benefits at issue for this Application are the CIAC Tax Benefits.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Rhode Island Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 12:55 PM PERMALINK

If Reed and Whitehouse enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Jack Reed and Sheldon Whitehouse hike the corporate income tax rate, Rhode Island households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least three Rhode Island utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Rhode Island Public Utilities Commission, National Grid Rhode Island, Suez Water and Interstate Navigation Company passed along tax savings to their customers.

National Grid Rhode Island: As noted in this January 11, 2018 National Grid press release:

National Grid Rhode Island announced today that it is reducing its electric and gas base distribution rate proposal with the Rhode Island Public Utilities Commission (RIPUC) by more than $25 million. Last November, National Grid had put forth its first proposal since 2012 asking the RIPUC to adjust its base distribution rates for both gas and electric customers. Since that time, National Grid has been assessing how the newly passed federal tax reform legislation that was signed into law in late December could benefit our customers.

“Today’s announcement is a key indicator of how this new tax law can provide real benefits to National Grid’s customers,” said Tim Horan, president and COO of National Grid in Rhode Island.  “We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills.”

Suez Water: As noted in this June 8, 2018 Rhode Island Public Utilities Commission document:

The Company's Exhibit 4 (Cagle), Schedule 5C contains detail that shows that the Company originally estimated an amount of $129,640 of federal income tax savings from January 1 through September 30, 2018, its estimated effective date of new rates. The Company has reflected that as part of its proposed TCJA-related Regulatory Liability, which the Company proposes to amortize over 50 years. The Company has thus proposed to reduce rate year income tax expense by $2,593, relating to its proposed 50-year amortization of this component of its TCJA-related Regulatory Liability. 

Interstate Navigation Company: As noted in this Rhode Island Public Utilities Commission document

The parties also agreed on a method for crediting ratepayers with the tax savings from the reduction to the corporate tax rate. The Settlement Agreement provided for the creation of a new capital reserve account to be used by Interstate for capital projects including fixed asset purchases such as new vessels and/or overhauls of vessels, buildings, ramps, docks, pilings, etc. The initial funding will be $1,519,701 and the account will accrue interest at the Washington Trust Company money market rate. The following conditions will apply: (1) ratepayers will be credited when Interstate excludes the depreciation on the appropriate portion of any asset paid for from the capital reserve account funds; (2) if only a portion of the asset was paid for from the capital reserve account funds, the depreciation will be prorated; (3) any portion of the assets purchased from the capital reserve account funds will be excluded from rate base; and (4) because there will be no book depreciation on assets purchased from the capital reserve account, to account for tax depreciation, a credit will be added at the end of each fiscal year to the capital reserve account to capture the benefit for ratepayers. The credit will reflect the tax savings from the tax depreciation at the 21% corporate tax rate and will be added to the ratepayer’s portion of the earnings in excess of 12% on each year’s Return on Equity report

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Georgia Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 12:35 PM PERMALINK

If Ossoff and Warnock enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Jon Ossoff and Raphael Warnock hike the corporate income tax rate, Gerogia households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least two Georgia utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with Georgia Public Service Commission, Georgia Power and Atlanta Gas Light passed along tax savings to their customers. 

Georgia Power: As noted in this March 6, 2018 Georgia Power press release:

Georgia Power has completed an assessment of the impact of the Tax Cuts and Jobs Act for the company – including approximately $1.2 billion in benefits for customers. The benefits were confirmed as part of an agreement with Georgia Public Service Commission (PSC) Staff and include approximately $130 million in reduced taxes on financing costs for the Vogtle nuclear expansion; $330 million in direct credits to customers as a result of lower federal income tax rates over the next two years and approximately $700 million in future benefits to be addressed in the company's next base rate case in 2019, which also includes the benefits of last week's reduction in state of Georgia income tax rates. If approved by the Georgia PSC, the typical residential customer using an average of 1,000 kilowatt-hours per month could receive approximately $70 in refunds over the two-year period.

"We are committed to offering the highest customer value with rates below the national average, and we're pleased to be able to continue to pass the benefits of the new tax laws on to our customers," said Paul Bowers, chairman, president and CEO of Georgia Power.

Atlanta Gas Light: As noted in this May 15, 2018 Atlanta Gas Light press release

The Georgia Public Service Commission (PSC) today voted to approve a stipulation reached between its staff and Atlanta Gas Light Company (Atlanta Gas Light) that provides for $82 million in customer benefits stemming from the Tax Cuts and Jobs Act (TCJA) of 2017, including $16 million in rate credits to be passed on to Atlanta Gas Light customers beginning in July. 
 
“We are committed to providing efficient and effective energy solutions to our communities,” said Bryan Batson, president of Atlanta Gas Light. “The PSC’s order strikes the proper balance of allowing Atlanta Gas Light to continue making important safety and modernization investments in infrastructure programs while returning the net benefits of tax reform to customers.”
 
The stipulation recognizes the benefits of the federal tax reform law, including the lowering of the federal corporate income tax rate from 35 to 21 percent. It also factors in the negative impacts to utilities, such as the loss of bonus deprecation and cash flow shortfall caused by the change in tax rates. To compensate for that loss in working capital, the PSC agreed to adjust the Company’s equity ratio, which should benefit the utility and customers by helping protect credit ratings and preserve lower borrowing costs.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


New York Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 11:50 AM PERMALINK

If Schumer and Gillibrand enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Chuck Schumer and Kirsten Gillibrand hike the corporate income tax rate, New York households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least ten New York utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the New York Public Service Commission, Consolidated Edison Company of New York, Inc. (electric and gas), Consolidated Edison Company of New York, Inc. (steam), New York State Electric and Gas Corporation, Rochester Gas and Electric Corporation, Natural Fuel Gas Distribution Company,  Corning Natural Gas Corporation, Central Hudson Gas & Electric Corporation, New York American Water, Suez Water New York and National Grid passed along tax savings to their customers.

Consolidated Edison Company of New York, Inc. (electric and gas): As noted in this January 16, 2020 New York Public Service Commission document:

In 2017, Congress passed the Tax Cuts and Jobs Act of 2017 (2017 Tax Act), which, among other things, lowered the highest corporate federal income tax rate from 35 percent to 21 percent and eliminated bonus depreciation. Consequently, the Commission issued an order directing New York utilities to preserve for the benefit of ratepayers the net savings resulting from the 2017 Tax Act through deferral accounting until all net benefits are reflected in rates.

In its initial tariff filings in January 2019, Con Edison proposed revenue requirements that reflected the reduction in the tax rate and the termination of bonus depreciation. The Company proposed to amortize deferred net benefits realized from the tax reforms in 2018 over a three-year period starting January 2020 for electric and a two-year period for gas as there are two years remaining for the three-year amortization of the benefit that started in January 2019. Con Edison also proposed to refund the protected asset related excess deferred federal income taxes (EDFIT) benefits to customers over the average remaining life of the underlying plant assets, and the unprotected EDFIT balances over a five year period.

Consolidated Edison Company of New York, Inc. (steam): As noted in this August 9, 2019 New York Public Service Commission document

Effective as of October 1, 2018, Con Ed steam rates will include a tax sur-credit as a result of the Tax Cuts and Jobs Act of 2017 impact.  Joining over 100 documented utilities across the country thus far issuing credits for electric, gas, steam, and/or water service, tax sur-credits for Con Ed steam rates range from about $1.02 to $2.25 per Mlb. 

New York State Electric and Gas Corporation: As noted in this May 14, 2018 AVANGRID document:

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act modified the federal corporate income tax rate from a maximum 35 percent to a flat 21 percent rate, effective January 1, 2018. This tax rate reduction will result in lower income tax expense going forward on the books of certain rate-regulated companies, including NYSEG and RG&E. Accordingly, on March 15, 2018, the Commission ordered that, within 60 days of the Order, a number of companies, including NYSEG and RG&E, either (1) submit proposed revisions to their stated transmission rates to reflect the change in the federal corporate income tax rate and describe the methodology used for making those revisions, or (2) show cause why they should not be required to do so.

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NYSEG’s current stated wholesale TSC was set by the Commission in Docket ER97-2353 (Opinion 447), using data from a 1997 test year, and later amended in a settlement approved by the Commission in Docket No. EL04-56. In order to reflect the impact of the change in the federal income tax rate, NYSEG changed the federal income tax rate included in the previously approved rate determination from 35% to 21%, as described and supported by the Affidavit of Dr. Dumais. See Attachment A. This results in a reduction of approximately $4.0 million in the NYSEG annual transmission revenue requirement which, in turn, reduces NYSEG’s transmission by $0.2696 per MWh. 

Rochester Gas and Electric Corporation: As noted in this May 14, 2018 AVANGRID document:

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act modified the federal corporate income tax rate from a maximum 35 percent to a flat 21 percent rate, effective January 1, 2018. This tax rate reduction will result in lower income tax expense going forward on the books of certain rate-regulated companies, including NYSEG and RG&E. Accordingly, on March 15, 2018, the Commission ordered that, within 60 days of the Order, a number of companies, including NYSEG and RG&E, either (1) submit proposed revisions to their stated transmission rates to reflect the change in the federal corporate income tax rate and describe the methodology used for making those revisions, or (2) show cause why they should not be required to do so.

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RG&E’s current stated wholesale TSC was set by the Commission in Docket OA96-141, using data from a 1995 test year. The rates approved by the Commission in that proceeding remain in effect today. In order to reflect the impact of the change in the federal income tax rate, RG&E changed the federal income tax rate included in the previously approved rate determination from 35% to 21%, as described and supported by the Affidavit of Dr. Dumais. See Attachment A. This results in a reduction of approximately $1.6 million from RG&E’s currently effective annual transmission revenue requirement, which, in turn, reduces RG&E’s transmission rate by $0.2229 per MWh.

National Fuel Gas Distribution Company: As noted in this June 15, 2018 New York Public Service Commission document

On June 4, 2018, the Company filed a petition with the Commission regarding the Company’s proposed disposition of net federal income tax savings resulting from the Tax Act and requesting authorization to, among other things, implement a customer refund program (“Customer Refund Program”) to return the net effect of the recent federal income tax rate reduction under the Tax Act, estimated at approximately $7.8 million for 2018 and $10.8 million for 2019, to the Company’s customers as soon as possible.

Corning Natural Gas Corporation: As noted in this September 18, 2018 Star-Gazette excerpt

On August 9, 2018 the New York State Public Service Commission (NYSPSC) Issued an order In Case# 17-M-0815 which Instructed Corning Natural Gas Corporation to begin to pass back the net benefits as a result of the Tax Cuts and Jobs Act of 2017. The result will be an average decrease on customer's bills of 2.24% effective 10-1-18 through 9-30-19. 

Central Hudson Gas & Electric Corporation: As noted in this February 21, 2019 Federal Energy Regulatory Commission document

As described above, Central Hudson has revised its stated transmission rates to reflect the new 21 percent federal corporate income tax rate, which results in rate reductions for customers. Absent a change to Central Hudson’s stated transmission rates, customers would not receive the benefits of the reduced federal corporate income tax rate. We therefore accept Central Hudson’s proposed revisions to its stated transmission rates, effective March 21, 2018, as requested in Central Hudson’s amended filing. Because Central Hudson proposed revisions to its stated rates to reflect the reduced tax rate, we terminate the section 206 proceeding in Docket No. EL18-77-000. Central Hudson is directed to make refunds, within 30 days of the date of this order, of all amounts collected from ratepayers for periods after the requested effective date in excess of the revised rates. Within 30 days of issuing refunds, Central Hudson must submit a refund report showing the amounts refunded to each ratepayer. The refund report must show the principal amounts and interest refunded to each ratepayer and the interest calculations based on 18 C.F.R. § 35.19a of the Commission’s regulations. 

New York American Water: As noted in this December 13, 2018 New York Public Service Commission document:

The New York State Public Service Commission (Commission) today approved $7.2 million in credits and other financial benefits for New York American Water Company, Inc. customers, a decision consistent with the agreement announced by Governor Andrew M. Cuomo on August 18, 2018 that lowered bills and provided other benefits for the company's 120,000 customers on Long Island. 

“Today’s decisions provide accelerated rate relief to all New York American Water customers and tracks the announcement by Governor Cuomo in August,” said Commission Chair John B. Rhodes. “This is a fair and equitable decision to ensure just and reasonable rates for the company’s customers on Long island.” 

The Commission’s action included approving the allocation and disposition of property tax refunds to customers and accelerating the disposition of customer credits relating to the Tax Cuts and Jobs Act (TCJA), net of the revenue adjustment  clause and property tax reconciliation surcharge balance, totaling $6.2 million. In addition, the company will contribute $1.01 million to fund a conservation study and rebate program for the benefit of customers.

Suez Water New York: As noted in this October 2, 2018 Gannett News Service excerpt:

Suez customers in New York will see their monthly water bills decrease over the coming year thanks to a federal tax cut passed in December, company officials announced Monday.

Savings for the average residential customer who uses 4,500 gallons of water every month would range between $16 and $35 per year, the company said.

National Grid: As noted in this March 15, 2018 WRGB Albany excerpt:

The initial proposal called for an 11% increase in prices.

Now, under the new approved plan, National Grid says a typical residential customer will see their electricity bill increase by about 3% in the first year, or close to $2 a month.

A natural gas customer will see a monthly bill increase of less than 2% totaling about $1.

The company says the cuts in the proposed rate hike are due in part to the Trump Administration’s corporate tax cuts.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Indiana Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 10:30 AM PERMALINK

If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and congressional Democrats hike the corporate income tax rate, Indiana households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least seventeen Indiana utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Indiana Utility Regulatory Commission, Duke Energy Indiana, Indiana-Michigan Power, Northern Indiana Public Service Company, Vectren Energy Delivery of Indiana, Inc., Midwest Natural Gas Corporation, Fountaintown Gas Company, Inc., South Eastern Indiana Natural Gas Company, Inc., American Suburban Utilities, Inc., Indiana American Water, Ohio Valley Gas Corporation, Indianapolis Power & Light, Aqua Indiana, Inc., Boonville Natural Gas Corporation, Community Natural Gas Company, L.M.H. Utilities Corporation, Indiana Natural Gas Corporation, and Indiana Utilities Corporation passed along tax savings to their customers. 

Aqua Indiana, Inc.: As noted in this May 16, 2018 Indiana Utility Regulatory Commission order

The tax rate embedded in the utility's recurring rates is 35%. The utility requests to reduce its recurring rates to reflect the new 21 % tax rate per the Tax Cuts and Jobs Act of 2017. 

Duke Energy Indiana: As noted in this  June 28, 2018 Inside Indiana article excerpt:

Plainfield-based Duke Energy Indiana has reached a settlement with the Indiana Office of Utility Consumer Counselor and other parties regarding the disbursement of savings to customers from the passage of the Tax Cuts and Jobs Act. The utility says customers will receive approximately $142 million in annual savings.

The OUCC says when the legislation went into effect in January, the federal tax rate for most investor-owned utilities fell from 35 percent to 21 percent. As a result, the average residential customer will see their monthly bill reduced by about 5 percent, or $7.33, in 2018.

"The federal tax act is an opportunity for us to lower customer bills and help offset future rising costs," said Duke Energy Indiana President Melody Birmingham-Byrd. "We’ve reached an agreement to pass along tax savings embedded in our electric rates over the next two years. It’s a constructive agreement that reduces rates while still preserving our credit quality, which is important for keeping customer bills low."

Indiana-Michigan Power: As noted in this May 31, 2018 Associated Press article excerpt:

The Indiana Utility Regulatory Commission approved an order Wednesday allowing the Fort Wayne-based company to boost its Indiana customers’ rates about 7.3 percent, allowing it to raise $96.8 million in new revenue.

The Journal Gazette reports Indiana Michigan Power had initially sought a 20 percent rate increase to generate $263 million in new revenue.

That was reduced under a settlement between the company, Indiana’s state consumer advocate and several cities, companies and advocacy groups.

Some of the decrease was also attributed to the recent federal tax cuts.

Northern Indiana Public Service Company: As noted in this January 29, 2018 Daily Herald article excerpt:

Merrillville-based Northern Indiana Public Service Co. announced Monday it was changing its request that was submitted in September to the state utility commission. The change reduces the rate increase NIPSCO is seeking from nearly 23 percent to about 19 percent.

The company says that would mean about $26 million less a year in increased billing charges to its some 820,000 gas customers.

Vectren Energy Delivery of Indiana, Inc.: As noted in this June 1, 2018 Indiana Utility Regulatory Commission filing

Vectren North shall return the Tax Regulatory Liability to its retail customers through a separate component (the “Tax Refund Credit”) to be established in Cause No. 44430 TDSIC 9 to be initiated by October 2, 2018. The Tax Refund Credit shall be designed to return the Tax Regulatory Liability to customers over a six month period and be incorporated into Vectren North’s Compliance and System Improvement Adjustment (“CSIA”) mechanism. As the amounts recorded for the Tax Regulatory Liability are captured by Rate Schedule by taking the change in base rates multiplied by the actual throughput for this period, Vectren North will refund the Tax Regulatory Liability by Rate Schedule. Vectren North shall provide the other Settling Parties workpapers demonstrating the calculation of the Tax Refund Credit within the CSIA by August 2, 2018. Any over- or under-recovery associated with the Tax Refund Credit will be captured within subsequent  CSIA filings as a CSIA variance

Midwest Natural Gas Corporation: As noted in this June 19, 2018 Indiana Utility Regulatory Commission filing

Midwest is proposing a volumetric refund to customers that is class specific. We believe the refund should occur in the same four calendar months, of 2019, it was created in 2018. This gives us the best opportunity to refund the over collection back to the customers that created it, generally in proportion to their contribution. Spreading it over all 12 calendar months tends to favor industrial customers with a significant summer base load over the weather-sensitive customers that helped create the refund. The refund will be divided over the GCA estimated sales volumes, which are generally based upon the average of several years. At the end of April 2019, we would reconcile the refund dollars, with any differences being included in GCA variances at that time. 

Fountaintown Gas Company, Inc.: As noted in this November 2, 2018 Indiana Utility Regulatory Commission filing: 

Fountaintown has proposed to refund the over collection of tax funds from January 1, 2018 through April 30, 2018 by refunding $81,293. Fountaintown has proposed that such refund occur through a tracking mechanism that will begin in January 2019 and run through April 30, 2019 in order to refund the over collection as closely as possible to the customers by class who paid such over collection. The OUCC agrees to both the amount and the proposed tracker mechanism. Based on the evidence of record, we find that the over collection between January 1, 2018 and April 30, 2018 in the amount of $$81,293 should be refunded to the customer classes as proposed by Fountaintown. This refund of over collected tax dollars will begin in January 2019 and run through April 30, 2019 in order to more closely match the refund to the customer who provided such funds. 

South Eastern Indiana Natural Gas Company, Inc.: As noted in this May 17, 2019 Indiana Utility Regulatory Commission memorandum:

South Eastern requests to revise portions of its IURC No. G-11 tariff to reflect the amortization of $176,222 in Excess Accumulated Deferred Income Taxes over 19.65 years as a result of the Commission’s investigation into the impacts of the Tax Cuts and Jobs Act of 2017 and the subsequent Order in Cause No. 45032 S13. The rate adjustment will result in $8,968 being amortized annually and will lead to a $12,324 annual reduction to South Eastern’s revenue requirement after being adjusted for taxes and fees.

American Suburban Utilities, Inc.: As noted in this December 10, 2018 Indiana Utility Regulatory Commission filing

The rate reduction took effect for all bills that were rendered on July 1, 2018. Accordingly, there are five months for which service was billed after the tax cut at the prior rates, because ASU bills in arrears. He provided a total estimated deferred liability of $79,042.72. ASU proposed to divide this amount by 3 and for each of the first three months after the Phase 3 tariff in Cause No. 44676 is effective, to provide a bill credit equaling one-third of the deferred liability. In this way, the Phase 3 tariff will step in over four months rather than one. He testified that ASU expected to file the Phase 3 tariff before the end of 2018, but that if for some reason the tariff had not been submitted before March 31, 2019, ASU would file a tariff to reflect a one-time credit to exhaust all of the deferred liability in a single month. 

Indiana American Water: As noted in this June 26, 2020 Indiana American Water press release

Indiana American Water announced today that its water customers across the state will soon start seeing lower monthly bills. The decrease, which amounts to approximately $1.04 per month (2.77 percent) for a residential customer using 4,000 gallons per month, is the result of the resolution of certain accounting issues related to the Tax Cuts and Jobs Act (TCJA) of 2017.

Ohio Valley Gas Corporation: As noted in this November 15, 2018 Indiana Utility Regulatory Commission filing

The Parties have agreed that OVG should pay the excess accumulated deferred amount of $4,012, 142 to its customers over 34.25 years based on the average rate assumption method ("ARAM"). The first such refund payments will be reflected on customer bills starting January 1, 2019. Consistent with ARAM, the amount of the annual payment will vary each year and be implemented through a separate adjustment to OVG's volumetric rates for utility service ("EDIT Tracker") based on customer allocations and rate design approved in OVG's most recent base 2 rate case. The baseline EDIT Tracker for each of the next 35 calendar years is shown on the attached Exhibit A titled "EDIT Annual Amounts to be Returned." These baseline trackers will be further adjusted by February 15 of each year after 2019 to true-up the amounts returned the previous year in comparison to the target amount on which the EDIT Tracker for that previous year was based. 

Indianapolis Power & Light: As noted in this October 31, 2018 Indiana Utility Regulatory Commission press release

Today, the Indiana Utility Regulatory Commission (Commission) issued an Order in the Indianapolis Power & Light (IPL) rate case, Cause Number 45029. The Order included the Commission’s approval of a settlement agreement filed by most of the parties involved in the case. In the Order, the Commission authorized the utility to implement rates designed to produce additional annual revenue of approximately $43.877 million. The utility’s original request was for $124.491 million. In February 2018, IPL lowered its request from the original $124.491 million to $96.731 million following the passage of the federal Tax Cuts and Jobs Act of 2017 (TCJA). As stated in the approved settlement agreement, IPL will also provide an additional credit of $14.3 million to customers over two years to reflect the impact of the TCJA on IPL’s current rates for the period before new base rates go into effect. The Commission has previously approved a $9.51 million credit in the specific tax investigation case for this utility.

Boonville Natural Gas Corporation: As noted in this April 30, 2018 Indiana Utility Regulatory Commission order

Boonville requests to revise portions of its IURC No. G-3 tariff reflecting the new tax rate applicable to Boonville as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-3 tariffs. 

Community Natural Gas Company: As noted in this April 30, 2018 Indiana Utility Regulatory Commission order:

Community requests to revise portions of its IURC No. G-4 tariff reflecting the new tax rate applicable to Community as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-4 tariffs. 

L.M.H. Utilities Corporation: As noted in this June 13, 2018 Indiana Utility Regulatory Commission order:

The tax rate embedded in the utility's recurring rates is 28.91 %. The utility requests to reduce its recurring rates to reflect the new 21 % tax rate per the Tax Cuts and Jobs Act of 2017.

Indiana Natural Gas Corporation: As noted in this April 30, 2018 Indiana Utility Regulatory Commission order:

Indiana Natural requests to revise portions of its IURC No. G-3 tariff reflecting the new tax rate applicable to Indiana Natural as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-3 tariffs. 

Indiana Utilities Corporation: As noted in this April 30, 2018 Indiana Utility Regulatory Commission order:

Indiana Utilities requests to revise portions of its IURC No. G-12 Tariff for Gas Service reflecting the new tax rate applicable to Indiana Utilities as a result of the Tax Cuts and Jobs Act of2017 for all affected rates and charges in its IURC No. G-12 Tariff for Gas Service.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


North Dakotans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 10:00 AM PERMALINK

If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and congressional Democrats hike the corporate income tax rate, North Dakota households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least three North Dakota utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the North Dakota Public Service Commission, MDU, Xcel Energy North Dakota and Otter Tail Power Company passed along tax savings to customers.

MDU: As noted in this Sept. 26, 2018 PSC statement:

In September 2017 the Commission approved a $4.6 million interim rate increase in accordance with state law. That interim rate was reduced to $2.7 million in March 2018 to reflect tax savings due to the Tax Cuts and Jobs Act. Because the agreement approved today includes a smaller increase than the interim rate, MDU natural gas customers will receive a refund for any excess revenue collected from September 2017 to present. The refund will be issued within 90 days of approval of a refund plan.

As part of the agreement, the fixed basic service charge will be $20.87 per month for residential customers. Because the rate approved today is less than the current interim rate, customers will actually see a decrease in their bills.

Otter Tail Power Company: Also as noted in the Sept. 26, 2018 PSC statement:

The PSC also today approved an approximately $4.6 million (3.09%) annual revenue increase for Otter Tail electric service. The company had originally asked for an increase of $13.1 million (8.72%). The company has not asked for a rate increase since 2008. Since then, Otter Tail Power has experienced increased operating expenses and costs driven by the company’s investments in generation, transmission, and distribution infrastructure.

In December 2017 the Commission approved a $12.8 million interim rate increase in accordance with state law. That interim rate was reduced to $8.3 million in February 2018 to reflect tax savings due to the Tax Cuts and Jobs Act. Because the agreement approved today includes a smaller increase than the interim rate, Otter Tail electric customers will receive a refund for any excess revenue collected from December 2017 to present. The refund will be issued within 90 days of implementation of the final rates.

As part of the agreement, the fixed basic service charge will be no higher than $14 a month for residential customers. Because the rate approved today is less than the current interim rate, customers will actually see a decrease in their bills.

Xcel Energy North Dakota: As noted in a Feb. 8, 2019 Fargo Forum article:

Utility companies across the country paid lower taxes after the federal Tax Cuts and Jobs Act of 2017 passed. Since then, states have been ordering those companies to pass on the savings to customers.

There was some discussion of using the money to improve energy equipment in North Dakota, or possibly holding down future rate increases.

But on Friday, Feb. 8, Xcel announced its North Dakota customers will receive a rebate. Xcel Energy will soon distribute nearly $10 million to all North Dakota electricity customers as a result of the federal tax cut. All Xcel Energy electricity customers in the state will receive a credit on their bills. The refund for a residential electricity customer will average about $46, but will vary based on each customer’s actual use.

The North Dakota Public Service Commission approved the refunds this week and customers should receive them as one-time bill credit beginning this spring.

As an additional part of the agreement, North Dakota customers will not see any increases in their base electric rates until at least Jan. 1, 2021, which is the earliest any future rate reviews could take effect. The agreement also allows Xcel Energy the ability to provide customers with additional refunds should the company achieve higher earnings than authorized by the commission.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Texas Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 8:00 AM PERMALINK

If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and congressional Democrats hike the corporate income tax rate, Texas households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least nine Texas utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Public Utility Commission of Texas, CenterPoint Energy, El Paso Electric Company, Entergy Texas, Oncor Electric Delivery, Quadvest, TXU Energy, Atmos Energy Corp., Southwest Electric Power Company and AEP Texas Inc. passed along tax savings to their customers. 

El Paso Electric Company: As noted in this April 2, 2018 Houston Chronicle article excerpt:

El Paso Electric became the first utility in Texas to pass on the benefits of recently enacted corporate tax cuts to their customers by lowering its rates.

El Paso Electric, which serves more than 418,700 customers in Texas and New Mexico, will distribute the $27 million in savings over a year by cutting the average monthly electric bill by about 4 percent. That translates into just under $4 a month for the utility’s average residential customer using 635 kilowatt hours of electricity a month.

El Paso Electric is one of several utilities across the country that have shared the windfall from the corporate tax cuts — which sliced the corporate tax rate to 21 percent from 35 percent — with their customers. In Texas, the Public Utility Commission ordered Texas utilities to calculate their savings and pass them on to ratepayers. In some cases, rates will still go up, but not as much as they might have without the tax savings.

CenterPoint Energy: As noted in this CenterPoint Energy FAQs Sheet:

In order to pass on to customers additional benefits associated with the Tax Cuts and Jobs Act of 2017 (the “TCJA”), on August 1, 2019, CenterPoint Energy (“CNP”) filed with the Texas Railroad Commission and its municipal regulatory authorities rate reduction filings in its Houston and Texas Coast Divisions. The filings follow similar rate reduction filings made by the Company in 2018 to reflect benefits associated with the new federal corporate income tax rate. The rates proposed in the August 1, 2019 filings also include necessary costs to restore service following Hurricane Harvey.

The TCJA refund will be reflected in a customer’s bill as follows: 

As a monthly refund over 3 years. Customers will see a separate line item on 
their bill called Tax Refund. This refund will begin with bills rendered on or 
after January 1, 2020.

Entergy Texas: As noted in this October 26, 2018 Entergy press release:

Entergy Texas, Inc. has reached a settlement agreement with the Public Utility Commission Staff and the intervening parties in its rate case, filed on October 5, 2018.  This agreement, pending approval by the Public Utility Commission of Texas, will keep rates low, while continuing to grow the economy by investing in new infrastructure to ensure reliable and cost effective electricity for customers. As part of this plan, Entergy Texas is also passing along substantial savings from federal tax reform directly to its customers.  These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more affordable and reliable energy to customers. 

“We are pleased to reach an agreement with the parties in the case that benefits customers and helps ensure reliable and affordable energy for Southeast Texas,” said Sallie Rainer, president and CEO of Entergy Texas.  “We are committed to investments that minimize disruptions from outages and give our customers more tools and technology to better control their energy usage.”

Entergy Texas will flow back approximately $200 million in tax savings to customers over a period of up to four years, depending on customer class.  This credit will be reflected in a “TCJA Rider” on customer bills. In addition, customer bills will be credited $25 million over a period of up to four years for lower federal tax rates in 2018, which will be reflected in a “Federal Income Tax Credit” Rider. Customers saw these rates in effect on an interim basis starting October 17, 2018.  Final implementation of these rates is subject to approval of the settlement by the Public Utility Commission; a ruling from the Commission is expected in the coming months. 

Oncor Electric Delivery: As noted in this September 7, 2019 Public Utility Commission of Texas document

Oncor's annual revenue requirement reduction based on the impacts of the Tax Cuts and Jobs Act of 2017 ("TCJA") shall be $75,042,855 for excess accumulated deferred federal income taxes ("excess ADFIT") and $143,789,502 for annual federal income tax ("FIT') expense, for a total annual revenue requirement reduction of $218,832,357. 

Oncor's unprotected excess ADFIT based on the impacts of the TCJA shall be returned to ratepayers over a 10-year amortization period. Signatories reserve the right to seek modification of the amortization period in Oncor's next base-rate case.

Quadvest: As noted by Simon Sequeira, President of Quadvest:

"On behalf of the approximately 30,000 customers Quadvest Utility serves in Southeast Texas, we would like to thank you for your integral part in the development and ultimate passage of the Tax Cuts and Jobs Act of FY2017. The passage of this key piece of legislation has allowed Quadvest to proactively reduce our customers' base water and sewer fees by 26% or almost $90 per year/family."

TXU Energy: As noted in this February 20, 2018 TXU Energy letter:

TXU Energy has been following this proceeding and believes that the Commission has taken a prudent approach to this issue by evaluating each utility's unique situation and working with the utilities to adjust existing base rates via credit, upcoming Distribution Cost Recovery Factors (DCRFs), and Wholesale Transmission Rates that will ultimately flow through the Transmission Cost Recovery Factors (TCRFs). 

Given that a significant majority of our retail electric customers have chosen "unbundled" products that directly pass through TDSP charges (including any changes to those charges), the rate adjustments being overseen by the Commission will directly and efficiently flow through to most customers without any additional effort. For the minority of our customers that have chosen "bundled" products, TXU Energy looks forward to working with Commission Staff to evaluate efficient means to provide appropriate value to them. 

Atmos: As noted in this January 28, 2019 Denton Record-Chronicle excerpt:

Atmos ratepayers can expect a small, one-time credit on the gas bill next month, a credit meant to settle some of the savings that followed the 2017 corporate tax cut.

Atmos Energy Corp.’s Mid-Texas Division sent a letter to cities across North Texas last week to tell them about its planned distribution of about $5.2 million in tax savings. Residential ratepayers can expect a $4.08 credit with their February bill; and most businesses, a $12.92 credit.

The savings was made possible by the Tax Cuts and Jobs Act of 2017. When the act went into effect on Jan. 1, 2018, it lowered the federal corporate tax rate from 35 percent to 21 percent for Atmos.

Southwest Electric Power Company: As noted in this May 17, 2018 Southwest Electric Power Company press release

SWEPCO has approximately 184,000 Texas retail customers. All such customers and all classes of customers will be affected by this change. SWEPCO is requesting to change its rates to reflect the impact of the change in federal income tax rates implemented by the Tax Cuts and Jobs Act of 2017, which was passed by Congress late last year. This new federal law reduces the corporate income tax rate from 35% to 21%, and SWEPCO estimates that application of the lower income tax rate will result in an annual approximate $18 million, or 4.9%, overall decrease in base rates for Texas retail customers. 

AEP Texas Inc.: As noted in this April 6, 2020 Public Utility Commission of Texas document

The signatories agreed that, to address the effects of the Tax Cuts and Jobs Act of 2017, AEP Texas will refund a total of $108,020,034, which reflects the following: the difference between the revenues collected under existing rates and the revenues that would have been collected had the existing rates been set using the 21% tax rate enacted under the Tax Cuts and Jobs Act of 2017 until the new rates are implemented; amounts associated with the change in the amortization of protected excess deferred federal income taxes (EDIT) as a result of the Tax Cuts and Jobs Act of 2017 from January 1, 2018 until the date the protected EDIT is included in new rates; and unprotected EDIT associated with the change in tax rates under the Tax Cuts and Jobs Act of 2017. 

The amount of $108,020,034 is being refunded through separate riders for distribution and transmission customers. The signatories agreed that AEP Texas will refund $76,531,681 to distribution customers through its proposed income tax refund rider over a one-year period. The rider will be implemented separately for each division. AEP Texas will refund $31,488,353 to transmission customers as a one-time credit through its transmission cost of service. 

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Florida Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Thursday, September 9th, 2021, 2:22 PM PERMALINK

If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and congressional Democrats hike the corporate income tax rate, Florida households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least seven Florida utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Florida Public Service Commission, Duke Energy Florida, Gulf Power Company, Tampa Electric, Florida Public Utilities Company, Peoples Gas System, Florida Power and Light and Florida City Gas passed along tax savings to their customers. 

Florida Power and Light: As noted in this January 17, 2018 WPTV News excerpt

Florida Power and Light customers will not have to pay for Hurricane Irma.

The power company said Tuesday that savings from recent tax reform signed by President Trump will offset any planned costs.

FPL said it will apply its savings to the $1.3 billion in costs from Irma that it had intended to recoup from customers.

Thousands of customers lost power for days and weeks during September because of the hurricane.

The utility had previously announced that it would have to implement a surcharge in March to pay for Irma after a year-long surcharge for 2016's Hurricane Matthew ends in February.

Each of FPL's  customers will save an average of $250.

Duke Energy Florida: As noted in this June 11, 2019 Florida Public Service Commission news release

The Florida Public Service Commission (PSC) today approved Duke Energy Florida, LLC’s (DEF) agreement to apply federal tax savings to offset storm restoration costs for Hurricane Michael, thereby avoiding a surcharge to DEF customers.

DEF had originally requested approval to recover $223.5 million, equating to $6.95 on a monthly 1,000 kWh residential bill for 12 months, beginning in July 2019. This agreement avoids these charges and continues DEF’s use of 2017 Tax Cuts and Jobs Act savings to cover hurricane recovery costs for its customers.

Gulf Power Company: As noted in this October 30, 2018 Florida Public Service Commission news release:

The Florida Public Service Commission (PSC) today ordered Gulf Power Company (Gulf) to pass additional savings from the Tax Cuts and Jobs Act of 2017 to its customers. The Commission approved an additional $9.6 million in customer bill reductions.

As a result, Gulf’s base rates will be reduced by $9.6 million, allowing residential customers to see a monthly bill reduction of $1.11 per 1,000 kWh in January 2019. In addition, Gulf proposes to reduce its 2019 fuel cost recovery amount by $9.9 million. This proposal will be considered at the PSC’s annual cost recovery clause hearing in November.

Tampa Electric: As noted in this March 1, 2018, Tampa Electric press release:

Tampa Electric bills won’t rise to pay for Hurricane Irma restoration costs, thanks to new tax savings. The Florida Public Service Commission (PSC) unanimously approved the measure today.

Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to cover the cost of restoring power after Hurricane Irma and several other earlier named storms. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019. 

Florida Public Utilities Company: As noted in this January 24, 2019 Chesapeake Utilities Corporation press release:

The Florida Public Service Commission has approved the settlement agreement between Florida Public Utilities Company (FPU), a subsidiary of Chesapeake Utilities Corporation (NYSE: CPK), and the Office of Public Counsel (OPC). The settlement agreement, which was filed on October 17, 2018, reduces electric rates as a result of the federal Tax Cuts and Jobs Act.

“This decision provides an immediate benefit to FPU electric customers, and we are appreciative of the Public Service Commission’s decision to approve our agreement which passes financial savings to customers,” said Jeffry M. Householder, President and Chief Executive Officer of Chesapeake Utilities Corporation. “The federal tax credit combined with declining electricity commodity costs reduces the average FPU residential customer’s total bill, which has remained unchanged from nearly a decade ago.”

FPU residential electric customers will be receiving an average estimated $3.32 decrease on their monthly bills. Commercial electric customers will also receive monthly bill reductions. Reduced rates for FPU electric customers are reflected on their January bills. The terms of the settlement will further reduce the average residential electric bill by an additional estimated $0.45 beginning January 1, 2021.

Peoples Gas System: As noted in this September 12, 2018 Florida Public Service Commission document

The Florida Public Service Commission (PSC) today approved a Settlement Agreement that will reduce monthly bills for TECO Peoples Gas System (Peoples) customers beginning in January 2019. 

A result of the Tax Cuts and Jobs Act of 2017, the Agreement reduces Peoples revenue requirement by $11.6 million annually. The revenue decrease will affect the base rate portion of the bill for all customer classes.  For example, a residential customer using a monthly average of 20 therms would see a $1.00 reduction in the base rate portion of the bill.

Florida City Gas: As noted in this December 11, 2018 State of Florida Public Service Commission news release

The Florida Public Service Commission (PSC) today approved  Settlement Agreements for Florida Public Utilities Company (FPUC) and for Florida City Gas (FCG) to implement savings from the Tax Cuts and Jobs Act of 2017. 

---

In the Florida City Gas case, the company, OPC, and the Federal Executive Agencies agreed to a 2018 Stipulation and Settlement that will reduce the gas utility’s base rates by a total of $305,000 in January 2019 to reflect ongoing tax savings. Also starting in January 2019, the company’s revenues will be reduced by an additional $305,000 annually for five years to compensate customers for retroactive impacts of the tax law.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

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New Jersey Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Thursday, September 9th, 2021, 10:15 AM PERMALINK

If Booker and Menendez enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Cory Booker and Bob Menendez hike the corporate income tax rate, New Jersey households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least fourteen New Jersey utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the New Jersey Board of Public Utilities, Atlantic City Electric, New Jersey American Water, New Jersey Natural Gas, Public Service Enterprise Group, Rockland Electric Company, Atlantic City Sewerage Company, SUEZ Water New Jersey, Inc., Middlesex Water Company, Gordon’s Corner Water Company, Jersey Central Power and Light Company, South Jersey Gas Company, Elizabethtown Gas, Aqua New Jersey, and New Jersey-American Water Company passed along tax savings to their customers. 

Atlantic City Electric: As noted in this April 3, 2018 Exelon Utilities press release excerpt:

Atlantic City Electric will provide $23 million in annual tax savings to its customers. The company made a filing this month with the New Jersey Board of Public Utilities, which was approved on March 26, 2018. Customers will begin to see reductions on their bills around April 1, 2018. 

New Jersey American Water: As noted in this October 28, 2020 American Water press release:

The New Jersey Board of Public Utilities (BPU) today approved changes to New Jersey American Water’s base water and wastewater rates.  The BPU also approved a credit resulting in the pass-back to customers over the next 10 months of $32.5 million in excess accumulated deferred income taxes associated with the Tax Cuts and Jobs Act.  For the average residential customer, the base rate increase of $39 million annually will be offset by the credit through August 31, 2021

New Jersey Natural Gas: As noted in this March 2, 2018 New Jersey Resources press release excerpt:

New Jersey Natural Gas (NJNG), a regulated subsidiary of New Jersey Resources (NYSE: NJR), today submitted a filing to the New Jersey Board of Public Utilities (BPU) to pass through the benefits of the recently enacted federal tax reform to customers. NJNG announced it will reduce customers’ rates by $21 million, effective April 1, 2018, resulting in a $31, or 3 percent, decrease to a typical residential heating customer’s annual bill.

NJNG also announced it will provide a one-time refund to customers totaling approximately $31 million. The estimated refund for a typical residential heat customer is $47. The actual refund amounts will be determined in May and reflect individual customer usage. Pending BPU approval, customers can expect to see these savings in their May or June bills.

For the rate decrease, a typical residential heating customer using 1,000 therms a year will see their annual bill go from $1,054 to $1,023, a savings of $31. When combined with the one-time refund, the customer will see an overall reduction of $78 or 7.4 percent this year. This adjustment will help ensure rates reflect the lower tax structure and any appropriate savings are passed on to customers.

“Our top priority is to ensure we deliver safe, reliable and affordable service to our customers, said Laurence M. Downes, chairman and CEO of New Jersey Resources. “We are pleased to pass along the benefits of tax reform to our customers through lower energy bills.”

Public Service Enterprise Group: As noted in this March 2, 2018 PSE&G press release:

Public Service Electric and Gas Co. (PSE&G) today proposed to lower customer bills by approximately 2 percent on April 1 to pass on the benefits of the federal tax reform legislation enacted earlier this year.

In its filing with the NJ Board of Public Utilities, PSE&G will reduce rates by approximately $114 million on an annual basis effective April 1 to reflect lower federal taxes the utility will pay. The typical residential combined electric and gas customer will save nearly $41 per year.

Rockland Electric Company: As noted in this June 22, 2018 New Jersey Board of Public Utilities document:

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as well as a proposed plan. Specifically, RECO's petition stated that the 2017  TCJA would result in an annual revenue requirement reduction for the Company of approximately $2.868 million, as of April 1, 2018. The Company decreased its net deferred tax liabilities by $45 million, decreased its regulatory asset of future income tax by $17.million and accrued a regulatory liability for future income tax of $28 million. REGO calculated its new interim rates effective April 1, 2018 using billing determinants underlying the distribution rates established in RECO's 2016 Base Rate Case. The Company calculated the current level of revenue based on the currently effective rates and allocated the distribution decrease among the service classifications in proportion to the relative contribution made by each class to the total current level of revenue. 

The Company proposed to return to ratepayers the amounts deferred pursuant to the Generic TCJA Order for the period of January 1, 2018 until the effective date of the Company's new rates, by means of a sur-credit. The Company proposed to employ a short-term borrowing rate to accrue interest on the deferred amounts until the Company's returns such amount to ratepayers. The Company would return this total deferral amount over twelve (12) consecutive calendar months, commencing with the month immediately following when the Board issues an order approving the Company's new rate. The sur-credit would be applied to all service classifications on an equal per kWh basis for the twelve (12) month period. According to the petition, the Company's final effective rates reflect the proposed refund of the full amount of the excess accumulated deferred federal income tax liability to ratepayers.

Atlantic City Sewerage Company: As noted in this February 27, 2019 New Jersey Board of Public Utilities document

The Update noted that effective April 1, 2018, ACSC implemented a rate decrease, to reflect the fact that the tax expense reflected in ACSC's rates had been calculated at the statutory 34% rate. The new rates, made effective April 1, 2018, were based upon the new statutory rate of 21%. 

The Update noted that the April 1, 2018 rate reduction was based upon a reduction in income tax expense of $319,945.00. After applying ACSC's gross up factor, the rate decrease became an annual revenue reduction of $472,838.00. 

SUEZ Water New Jersey, Inc.: As noted in this February 27, 2019 New Jersey Board of Public Utilities document

On March 5, 2018, pursuant to the Generic Tax Order, SUEZ Water New Jersey, Inc., SUEZ Water Toms River, Inc. and SUEZ Water Arlington Hills, Inc. (collectively, "Joint Petitioners" or "Companies") filed a joint petition requesting Board approval to implement a reduction in base rates effective April 1, 2018, of $12.1 million for SUEZ Water New Jersey, Inc., $1.6 million for SUEZ Water Toms River, Inc. and $0.2 million for SUEZ Water Arlington Hills, Inc. 

On March 26, 2018, the Board issued an Order ("March 2018 Order") approving the implementation of the Joint Petitioners' proposed rate reduction on an interim basis, effective April 1, 2018. The proposed refund and other rider tariffs were deferred until a later date. 

Middlesex Water Company: As noted in this August 29, 2018 New Jersey Board of Public Utilities document

On March 26, 2018, the Board issued an Order Adopting Initial Decision/Settlement ("Middlesex Rate Case Order'') in BPU Docket No. WR17101049, Middlesex's most recent base rate case. 3 This Order adopted a Stipulation of Settlement ("Rate Case Stipulation") executed by Middlesex, the New Jersey Division of Rate Counsel and Board Staff ("Parties"). Under the Rate Case Stipulation, the Parties agreed that the Company included in the Rate Case Stipulation the effect on Middlesex's rates of both phases of the required calculations as set forth in the Board's Generic Tax Order.4 This included $500,000 for Phase Two adjustments accounted for as a result of an analysis performed by the Company and reviewed by the Parties. 5 The Parties further agreed in the Rate Case Stipulation to continue to review any calculations associated with the Company's Phase Two adjustments on an ongoing basis, and to resolve any issues if they were to arise. 6 In addition, the Company agreed that, in the event the Phase Two adjustment resulted in less than the $500,000 returned to customers with the Board's approval of the Rate Case Stipulation, no further adjustment will be made.

Gordon’s Corner Water Company: As noted in this August 29, 2018 New Jersey Board of Public Utilities document

The Parties stipulated and agreed that all issues and requirements set forth in the Generic Tax Order as applied to Gordon's Corner were resolved. 5 Consistent with the Rate CaseStipulation, Gordon's Corner's new rates to be set as a result of that case include a one-time $0.56 (i.e., a 56 cent) credit per customer, reflecting a stub period total credit due to customers of $8,394. This credit resolves both this matter with respect to Docket No. Ax:18010001 as well as all issues in the Gordon's Corner Rate Case, associated with both Phase One and Phase Two of the Generic Tax Order. The Board NOTES that Gordon's Corner has already complied with Phase One of the Generic Tax Order by lowering its volumetric rate from $5.15 to $5.04, or $154,676 on an annual basis, The Board FURTHER NOTES that the new base rates agreed to by the Rate Case Stipulation reflect a rate base adjustment of $137,421, which represents the Accelerated Deferred Income Tax owed to ratepayers pursuant to the 2017 Tax Cuts Act.

Jersey Central Power and Light Company: As noted in this May 8, 2019 New Jersey Board of Public Utilities document

On March 2, 2018, the Company filed a petition pursuant to the Generic TCJA Order, which included proposed tariffs as well as a proposed plan. According to the petition, JCP&L recalculated its base rates to incorporate the impact of the mandatory reduction in the federal corporate income tax ("FIT") rate from 35% percent to 21%, effective January 1, 2018 in accordance with the 2017 Act and the Generic TCJA Order. JCP&L's proposed methodology and quantifications of the effects of the 2017 Act included the following: (1) a reduction in the FIT rate which would result in a base rate reduction of $28.6 million annually for the Company; (2) a deferral, as a regulatory liability, of $6.3 million on its books, with interest, for the impact of the reduction in the FIT rate on its tax gross-up between January 1, 2018 and March 31, 2018; and (3) non-rate base (unprotected) Excess Deferred Income Taxes ("EDITs") of $90.89 million to be amortized over a ten-year period (levelized).

South Jersey Gas Company: As noted in this September 17, 2018 New Jersey Board of Public Utilities document

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as well as a proposed plan. Specifically, SJG stated that it planned: (1) a reduction in base rates of $25.88 million effective April 1, 2018; (2) a corresponding estimated $12.88 million refund to customers for the period January 1, 2018 through March 31, 2018 for the corresponding rate adjustment (including interest at the Company's short-term debt rate and (3) are-measurement and adjustment to rates related tci the "Unprotected" excess deferred income taxes of approximately $27.1 million associated with the implementation of the 2017 Act. 

Elizabethtown Gas: As noted in this June 22, 2018 New Jersey Board of Public Utilities document

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as w~II as a proposed plan. Specifically, ETG requested an annual reduction in firm distribution revenues of $10,938,818, effective April 1, 2018, which represents a 6.6% decrease. The Company also requested authorization to refund to customers for the difference between the effective April 1, 2018 rate and charges for January 1, 2018 through March 31, 2018, which was estimated to be $5.6 million. The Company proposed to refund the $5.6 million in a billing cycle during or before September 2018. Alternatively, the Company proposed to provide the refunds in May 2018 by filing a true-up after final rate approval by the Board. ETG proposed that the one-time refund would include interest at the Company's short-term debt rate as specified in the Company's last base rate case3 and· New Jersey Sales and Use Tax. ETG's calculations include an adjustment to eliminate all Investment tax credits for the revenue requirements. The Company's revenue factor will be reduced to 1.40828098. Additionally, the Company will use the Average Rate Assumption Method ("ARAM") to amortize the protected excess deferred tax liability and proposed to amortize the unprotected potions of the excess • over five (5) years. ETG's rate base includes an offset for deferred taxes, a portion of which will be used to provide customers an ongoing carrying cost benefit to the pre-tax weighted average cost of capital. To accomplish the rate reduction, the Company proposed to only reduce the distribution charges of its firm service classification and leave the monthly service charges untouched. The Weather Normalization Clause Margin Revenue Factor would be adjusted, effective January 1, 2018, to realize the full benefit of the 2017 Tax Act. 

Aqua New Jersey: As noted in this July 25, 2018 New Jersey Board of Public Utilities document

On March 2, 2018, the Company filed its petition pursuant to the January 31, 2018 Generic TCJA Order, including proposed tariffs as well as a proposed plan. The Company's filing and proposed tariffs did not include an across-the-board rate reduction reflecting the reduction in the corporate tax rate from thirty-five percent (35%) to twenty-one (21 %). Therefore, Aqua refiled its petition ("Tax Rate Adjustment Filing") which reflected the reduction in the corporate tax rate from thirty-five percent (35%) to twenty-one percent (21%) on March 19, 2018.
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The Company represented that this rate change and one-time refund results in an overall rate decrease of approximately 6.8% to the average residential water customer using 5,000 gallons of water per month.

New Jersey-American Water Company: As noted in this July 10, 2019 New Jersey Board of Public Utilities document

The Signatory Parties have reviewed the Company's filing, exchanged discovery, filed comments and reply comments, and reached a resolution with regard to the disposition of the stub period amount and the difference between the originally implemented rate decrease of 5.88% and the agreed upon rate decrease of 6.12%. The resulting Partial Stipulation will result in NJAW issuing the agreed upon one-time credit to its customers. 

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

More from Americans for Tax Reform


Pennsylvanians Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Thursday, September 9th, 2021, 10:04 AM PERMALINK

If Casey enacts a corporate income tax rate increase, he will have to explain why he just increased your utility bills

If President Biden and Senator Bob Casey hike the corporate income tax rate, Pennsylvania households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least seventeen Pennsylvania utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Pennsylvania Public Utility Commission, Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC -- Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater passed along tax savings to their customers.

Citizens’ Electric Company of Lewisburg: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Metropolitan Edison Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers. 

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Pennsylvania Electric Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.

Pennsylvania Power Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Pike County Light & Power Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers. 

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

PPL Electric Utility Corporation: As noted in this  May 17, 2018 Pennsylvania Public Utilities Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Wellsboro Electric Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release: 

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities. 

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater. 

West Penn Power Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

PECO Energy Company (Gas Division): As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release: 

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers. 

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

National Fuel Gas Distribution Corporation: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities. 

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater. 

Peoples Gas Company LLC: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release: 

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater. 

Peoples Natural Gas Company LLC—Equitable Division: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater. 

UGI Central Penn Gas Inc.: As noted in this May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities. 

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

UGI Penn Natural Gas Inc.: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

UGI Utilities, Inc.--Gas Division: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Pennsylvania-American Water Company: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Pennsylvania-American Water Company—Wastewater: As noted in this  May 17, 2018 Pennsylvania Public Utility Commission press release:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” noted PUC Chairman Gladys M Brown in a statement at today’s public meeting. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the TCJA back to customers.

Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Company of Lewisburg, Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company (Gas Division), National Fuel Gas Distribution Corporation, Peoples Gas Company LLC, Peoples Natural Gas Company LLC—Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc.--Gas Division, Pennsylvania-American Water Company and Pennsylvania-American Water Company—Wastewater.  

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

 

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