John Kartch

Oklahoma 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, 9:30 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, Oklahoma 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 five Oklahoma 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 Oklahoma Corporation Commission, Oklahoma Gas and Electric Company, Public Service Company of Oklahoma, CenterPoint Energy Oklahoma Gas, Oklahoma Natural Gas and Arkansas Oklahoma Gas passed along tax savings to their customers.

Oklahoma Gas and Electric Company: As noted in this June 19, 2019 Oklahoma Corporation Commission document

The Oklahoma Corporation Commission today gave unanimous approval to a settlement in the Oklahoma Gas and Electric (OG&E) rate case that is the largest single rate reduction for an Oklahoma electric utility.

Commission Chairman Dana Murphy called the agreement a win-win for all concerned.

“The settlement will cut rates by $64 million and refund to customers $18.5 million in tax savings from federal tax reform,” Murphy said. “The timing of this couldn’t be better, as the savings will begin at a time when electric bills are the highest because of the summer heat.

---

Under the agreement, the average residential customer will receive a one-time tax credit and monthly rate reduction totaling an estimated $18.70 in July. Subsequent average monthly rate savings will be approximately $4.40.

Oklahoma Natural Gas: As noted in this January 9, 2019 The Oklahoman excerpt

An order approved Tuesday by the Oklahoma Corporation Commission might help take a little chill off the state's winter nights.

The order requires Oklahoma Natural Gas to pass through $22.7 million in credits to customers to compensate them for taxes collected as part of their bills the company didn't have to pay.

Officials said those credits will compensate for the lowered tax liabilities that the utility enjoyed in 2018 after Congress approved and President Donald Trump signed the Tax Cuts and Jobs Act of 2017.

Officials said the order requires the utility, a division of investor-owned ONE Gas, to provide $11.7 million in credits to its customers in Oklahoma in February. They said that represents the amount the utility over-collected from customers in 2018 that didn't account for its lower tax liabilities.

It also requires Oklahoma Natural Gas to lower its rates by $11 million to compensate customers for ongoing reduced tax liabilities, going forward. That reduction will remain in place until the company files its next rate case for consideration.

Officials said the average ratepayer will see a $15 reduction on February's bill and will see smaller reductions in subsequent bills this year.

Public Service Company of Oklahoma: As noted in this August 1, 2018 Oklahoma Corporation Commission document:

The Oklahoma Corporation Commission today unanimously approved an order directing Public Service Company of Oklahoma (PSO) to return approximately $428 million in deferred excess income taxes to customers. 

--

“This is money that is owed customers as a result of the Tax Cuts and Jobs Act that took effect January 1,” said Murphy. “The Commission issued an order in the first week of January for all utilities to begin tracking the resulting over collection of taxes for refund to customers. I commend the company for moving promptly to follow the order."

CenterPoint Energy Oklahoma Gas: As noted in this March 13, 2020 Oklahoma Corporation Commission document:

CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Oklahoma Gas ("CenterPoint Oklahoma or the "Company"), hereby applies for an order of the Oklahoma Corporation Commission (the "Commission"): (a) approving the calculations presented by the Company according to requirements of the Company's Performance Based Rate Change Plan (the "PBRC Plan") for the calendar year ended December 31, 2019, and related customer bill credits; (b) approving additional customer credits for Protected and Unprotected Excess Deferred Income Tax ("EDIT") arising from the Tax Cuts and Jobs Act of 2017 ("TCJA"); and (c) approving proposed base rate adjustments due to the Company's Energy Efficiency ("EE") true up adjustment and its EE incentive.

In this proceeding, CenterPoint Oklahoma will present calculations from Test-Year 2019 to support an aggregate credit to customers of approximately $2 Million. These credits arise expressly from the PBRC Plan. Customers would not be receiving such a benefit under the traditional rate process. The PBRC Plan provides that the $2 Million in credits will be returned to individual customers though monthly billings over a twelve-month period, to begin as soon as the Commission issues a final order in this Cause.

Arkansas Oklahoma Gas: As noted in this December 30, 2020 Oklahoma Corporation Commission document

THE COMMISSION THEREFORE ORDERS that the reduction in federal corporate tax rates resulting from the Tax Cuts and Jobs Act provides reduced tax expenses and new excess tax reserves, which were available to be returned to customers

THE COMMISSION FURTHER ORDERS that its previous order in this proceeding, Order No. 671980, required AOG to record a deferred liability to preserve tax savings until a review of AOG’s rates in its next-filed PBR change plan proceeding, to include consideration of tax savings. 

THE COMMISSION FURTHER FINDS that competent, sworn statements have been submitted and are hereby admitted as evidence that AOG complied with Order No. 671980 in Cause No. PUD 201900028, its next PBR proceeding filed after the entry of Order No. 671980. Through consideration of tax savings in that proceeding and in Cause No. PUD 202000051, the effects of the Tax Cuts and Jobs Act of 2017 on customer rates have therefore been addressed.

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 Hampshire 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 Wednesday, September 8th, 2021, 12:21 PM PERMALINK

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

If President Biden and Sens. Maggie Hassan and Jeanne Shaheen hike the corporate income tax rate, New Hampshire 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 one New Hampshire utility.

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 Hampshire Public Utilities Commission, Liberty Utilties passed along tax savings to their customers. 

Liberty Utilities: As noted in a May 2018 New Hampshire Public Utilities Commission Order excerpt:

In this order, the Commission approves a distribution revenue decrease for Liberty Utilities, passing on to ratepayers the benefits of reduced corporate taxes resulting from recent changes to state and federal tax laws. This order also approves Liberty’s proposal to forego other distribution rate increases that were scheduled to take effect June 1, 2018, as a way to pass additional benefits of corporate tax reductions on to 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


Idaho 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 Wednesday, September 8th, 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, Idaho 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 five Idaho 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 Idaho Public Utilities Commission, Idaho Power, Intermountain Gas, Suez Water Idaho Inc., Avista, and Rocky Mountain Power passed along tax savings to their customers.

Idaho Power: As noted in this April 23, 2018, Idaho Public Utility Commission document

On April 12, 2018, Idaho Power Company filed a Settlement Stipulation and Motion to Approve Settlement Stipulation. The Company, Commission Staff, and the Industrial Customers of Idaho Power signed the Settlement Stipulation to enable Idaho Power to provide its customers with approximately $33.9 million in benefits under a new tax law that decreased the Company's corporate tax rate and expenses.

Intermountain Gas: As noted in this May 22, 2018 Idaho Public Utility Commission document:

On December 22,2017, the President signed into law the Tax Cuts and Jobs Act of 2017 ("TCJA"). Effective January 1,2018, the TCJA decreased the federal corporate tax rate from 35 percent to 21 percent. In response, the Commission opened this multi-utility case to investigate whether to adjust the rates of certain utilities that benefit from the reduced tax rate. See Order No. 33965. The Commission directed all affected utilities-including the Company-to immediately account for the tax benefits as a regulatory liability, and to report on how the tax changes affected them, and how resulting benefits could be passed on to customers. See id. at l-2. 

The Company filed its report on March 23,2018. In its report, the Company proposed using the 2016 test year from its last rate case (NT-G-16-02) to calculate the benefits from the TCJA. Using a2016 test year would have resulted in a $4,966,895 rate decrease. 

A settlement conference was held at the Commission offices on May 7,2018. Representatives of Intermountain, Alliance of Western Energy Consumers, and Commission Staff (collectively, the "Parties") attended this meeting. Through discussions and compromise, the Parties agreed to the proposed Settlement Stipulation. 

On May 10, 2018, Intermountain filed Settlement Stipulation, which was signed by all Parties. The Settlement Stipulation, if approved, would result in the Company returning to customers, S5,111,303 of tax benefits the Company has realized under the TCJA, on a 2017 normalized basis. Furthermore, the deferred liability on the Company's books would be credited back to customers as part of the Company's next Purchased Gas Cost Adjustment ("PGA").

Suez Water Idaho Inc.: As noted in this May 22, 2018 Idaho Public Utility Commission document:

The Company filed its report on March 29,2018. In it, the Company proposes to reduce base rates by $2,722,791, or about 5.60A, to account for the reduction in corporate tax rates and associated changes to the revenue conversion factor. The Company has hired an outside consulting firm to assist in a detailed review of its income tax records in order to verify the balances of the regulatory liabilities subject to normalization (plant-related) as well as deferred tax liabilities that are unprotected (non plant-related). Thus, the Company did not propose any changes related to revaluing or amortizing deferred tax liabilities, preferring to wait to address the deferred tax liabilities in a general rate case, after the detailed review has been completed. 

Avista: As noted in this May 11, 2018 Idaho Public Utility Commission document

The Parties agree that Avista will reduce its Idaho base rates by $ 13.74 million (5 3%) for electric service, and $2.556 million (61%) for natural gas service. The Company will return these amounts to customers through Tariff Schedules 72 (electric) and 172 (natural gas) until the next general rate case when the tax benefits will be incorporated into base rates. The Parties agree to spread these permanent tax benefits (rate credits) on a uniform percent of base revenue basis for both electric and natural gas. The rate credit within each service schedule will be a uniform cents per kWh (electric) and therm (natural gas) to the volumetric block rates by schedule. The monthly service charge for each schedule will remain unchanged. Staff supports this method of rate spread and rate design because it generally matches how costs are being recovered from customers. 

The permanent reduction consists to two components, the tax rate change and the excess accumulated deferred federal income tax (ADFIT) amortization.

Rocky Mountain Power: As noted in this June 15, 2018 Idaho Public Utility Commission document:

State regulators have approved a rate decrease for customers of Rocky Mountain Power, reflecting the benefits of the Tax Cuts and Jobs Act of 2017 and changes to the corporate income tax rate at the state level.

The Idaho Public Utilities Commission’s decision reduces rates by about 1 percent. 

The change took effect June 1 and is the result of a Commission decision in January that ordered all utilities to report the impact of the tax law.

A main feature of the tax law that took effect Jan. 1 was to reduce the federal corporate tax rate from 35 percent to 21 percent. Shortly thereafter, Idaho Governor C.L. “Butch” Otter signed into law House Bill 463, reducing the state’s corporate tax rate from 7.4 percent to 6.925 percent.

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


South Carolina 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 Wednesday, September 8th, 2021, 7:15 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, South Carolina 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 four South Carolina 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 South Carolina Public Service Commission, Duke Energy, Dominion Energy, Palmetto Utilities Inc. and South Carolina Gas and Electric passed along tax savings to their customers.

South Carolina Gas and Electric: As noted in this August 31, 2018 South Carolina Public Service Commission document

In recognition of the Tax Cuts and Jobs Act of 2017 (“Tax Reform”), SCE&G shall provide customers a retail electric service bill credit equal to 4.42% of their billed rate schedule charges, excluding past due amounts, interest, penalties, non-standard service charges, franchise fees, and sales taxes. This bill credit shall be fixed at this amount for bills rendered after the effective date of this rider and before January 1, 2021 or until such earlier date as the Public Service Commission of South Carolina replaces it with a different calculation for applying the impact of the Tax Reform.

Palmetto Utilities Inc.: As noted in this July 13, 2020 The Post and Courier excerpt:

The rate hike would be lower in the first year because the utility agreed — as a stipulation of the settlement — to pass along to customers its savings from the 2017 Tax Cuts and Jobs Act.

The utility would agree not to seek another rate hike until 2023.

Duke Energy: As noted in this June 3, 2019 Duke Energy press release:

The changes in customer rates come after a lengthy and very public process evaluating a request that is at the heart of the company’s ability to build a smarter energy infrastructure for South Carolina. The new rates also reflect the company’s efforts to deliver electricity that is cleaner than ever, and ensure the best customer service possible. The new rates will also reflect savings from recent tax reform.

Dominion Energy: As noted in this June 14, 2019 Dominion Energy letter:

Additionally, pursuant to PSC Order No. 2018-308 issued in Docket No. 2017-381-A related to The Tax Cuts and Jobs Act ("Tax Act"), the PSC requires utilities to track and defer as a regulatory liability the effects resulting from the Tax Act. The Total as Adjusted ROE of 7.05% includes the estimated impact of the Tax Act on SCE&G's base retail electric business for the twelve-months ended March 31, 2019.

Certain accumulated deferred income taxes contained within net regulatory liabilities represent excess deferred income taxes arising from the re-measurement of deferred income taxes upon the enactment of the Tax Act. These amounts will be amortized to the benefit of customers as prescribed in PSC Order No. 2018-804.

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


Nevada 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 Tuesday, September 7th, 2021, 4:53 PM PERMALINK

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

If President Biden and Sens. Catherine Cortez Masto and Jacky Rosen hike the corporate income tax rate, Nevada 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 Nevada 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 Nevada Public Utilities Commission, Nevada Power, Sierra Pacific Power and Southwest Gas passed along tax savings to their customers.

Nevada Power: As noted in this March 22, 2018 the Nevada Independent excerpt:

The three members of the Public Utility Commission of Nevada voted unanimously, and with little discussion, to approve a draft order on Thursday lowering NV Energy’s revenue requirements by about $83.7 million — reflecting the 14 percent cut in corporate taxes included in the federal Tax Cuts and Jobs Act.

The cuts would reduce electric bills by roughly $4.08 a month for Southern Nevadans, while those served by the utility in Northern Nevada would see a monthly rate cut of approximately $2.81 in electric bills and $1.08 in their gas bill (each part of the state is served by a different business entity controlled by NV Energy, and each is affected differently by the tax bill).

Sierra Pacific Power: As noted in this March 22, 2018 the Nevada Independent excerpt:

The three members of the Public Utility Commission of Nevada voted unanimously, and with little discussion, to approve a draft order on Thursday lowering NV Energy’s revenue requirements by about $83.7 million — reflecting the 14 percent cut in corporate taxes included in the federal Tax Cuts and Jobs Act.

The cuts would reduce electric bills by roughly $4.08 a month for Southern Nevadans, while those served by the utility in Northern Nevada would see a monthly rate cut of approximately $2.81 in electric bills and $1.08 in their gas bill (each part of the state is served by a different business entity controlled by NV Energy, and each is affected differently by the tax bill).

Southwest Gas: As noted in this May 31, 2018 Southwest Gas press release:

Southwest Gas Holdings, Inc. (NYSE: SWX) today announced that Southwest Gas Corporation ("Southwest") filed a general rate case with the Public Utilities Commission of Nevada ("Commission"), Docket No. 18-05031.  The case requests a statewide overall general rate increase of approximately $32.5 million, which reflects any reduced tax liability associated with the Tax Cuts and Jobs Act of 2017.

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 Carolina 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 Tuesday, September 7th, 2021, 3:15 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, North Carolina 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 North Carolina 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 Carolina Utilities Commission, Duke Energy Carolinas and Duke Energy Progress passed along tax savings to their customers.

As noted in this February 1, 2018 Duke Energy press release:

Duke Energy today outlined its proposal to pass along savings from the new federal tax law to its North Carolina customers in ways that will lower bills in the near term and help offset increases in the future.

Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) offered the proposal in a filing with the North Carolina Utilities Commission (NCUC) today. Duke Energy has maintained customers' rates significantly below the national average for many decades while providing safe, reliable and increasingly clean energy for North Carolinians.

"This is a unique opportunity that allows us to reduce customer bills in the short term while also helping to offset future rate increases," said David Fountain, Duke Energy's North Carolina president. "With a balanced approach, our customers can benefit from a reduction in the corporate income tax rate, while we continue to make smart investments on behalf of our customers."

As noted in this June 22, 2018 North Carolina Utilities Commission press release

One of the primary drivers for the order to reduce rates is the passage of the Federal Tax Cuts and Jobs Act, which reduced the corporate income tax rate from 35% to 21%.

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


Massachusetts 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 Tuesday, September 7th, 2021, 12:09 PM PERMALINK

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

If President Biden and Sens. Elizabeth Warren and Ed Markey hike the corporate income tax rate, Massachusets 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 Massachusets 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 Massachusetts Department of Public Utilities, Eversource Energy, National Grid, Unitil, Berkshire Gas, Columbia Gas of Massachusetts, Liberty Utilities and Aquarion Water Company of Massachusetts, Inc. passed along tax savings to their customers. 

Eversource Energy: As noted in this February 5, 2018 Massachusetts Department of Public Utilities press release

To ensure Massachusetts ratepayers receive the benefit of recent federal tax cuts, the Department of Public Utilities (DPU) ordered NSTAR Electric Company (NSTAR) and Western Massachusetts Electric Company (WMECo), together doing business as Eversource Energy, to reduce rates due to the federal tax law in their base rates that will take effect on February 1, 2018. Additionally, in an effort to capture savings for ratepayers in the Commonwealth, DPU opened an investigation to analyze how the recently enacted federal tax reform may affect gas, electric, and water utility rates for Massachusetts utility customers.

As a result of the reduction in the tax expense and the rate consolidation of the companies, the DPU’s Order reduced the recently approved rates for Eversource Energy by approximately $56 million. Eversource customers will now see an approximately $20 million, or 1.8 percent, decrease in rates, instead of the approximately $36 million increase that was initially approved by the DPU.

National Grid: As noted in this June 30, 2018 article from the Daily News of Newburyport:

The state is ordering more than a dozen electric, gas and water companies to fork over $116 million in tax savings to their customers.

A directive issued Friday by the state Department of Public Utilities requires 14 publicly regulated companies — including National Grid, Eversource and Unitil — to reduce their distribution rates, effective July 1, to reflect savings from a cut in the federal corporate tax rate.

The agency says residential customers can expect average annual savings from $9 to $40 — or a 1 to 8.5 percent reduction on their bills.

Unitil: As noted in this February 28, 2020 Massachusetts Department of Public Utilities document

In the filing, Unitil sought to increase its rates to generate $7.3 million in additional base distribution revenues. This increase included the Company’s request to transfer the recovery of $3.4 million in Gas System Enhancement Plan (“GSEP”) investments from the Local Distribution Adjustment Factor (“LDAF”) to base distribution rates. Consequently, if approved, the proposed increase in base distribution revenues of $7.3 million would be offset by a revenue decrease of $3.4 million to the LDAF, which resulted in a $3.9 million, or11.1 percent, increase over current total gas operating revenues. The Company also statedthat its requested rate increase considered the reduction in the federal corporate income tax rate that results from the Tax Cuts and Jobs Act of 2017 (“Tax Act”), which became effective January 1, 2018

Berkshire Gas: As noted in this December 10, 2018 Daily Hampshire Gazette article:

The agreement also incorporates tax savings Berkshire received as a result of the reduction of the federal corporate tax rate. That resulted from the AG’s petitioning the DPU last December to ensure that utility tax savings go to ratepayers, and not to gas, electricity, and water utility owners.

Columbia Gas of Massachusetts: As noted in this April 14, 2018 Western Mass News excerpt:

Columbia Gas of Massachusetts is filing a petition with the Massachusetts Department of Public Utilities (DPU) to increase annual revenues by $24.1 million, representing a 3.9 percent increase in current operating revenues.

The request addresses increases in operating and maintenance costs incurred to comply with increasingly stringent federal and state regulatory mandates and capital costs incurred to upgrade gas infrastructure since the last time Columbia Gas changed its rates in 2016.

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The Columbia Gas request is reduced by the impact of the federal Tax Cuts and Jobs Act, which became effective on January 1, 2018.

The request includes a proposal for a refund to customers of $9.1 million, beginning on the effective date of the revised rates, related to the benefit of the tax cut as of January 1, 2018.

Liberty Utilities: As noted in this May 23, 2018 Massachusetts Department of Public Utilities notice of filing and public hearing:

On May 1, 2018, Liberty Utilities (New England Natural Gas Company) Corp. d/b/a  Liberty Utilities (“Company”) filed its compliance filing in D.P.U. 18-15. The Department docketed the Company’s filing as D.P.U. 18-15-7. The Company proposes to incorporate the current corporate income tax rate in its base distribution rates beginning on July 1, 2018. The Company expects that this change will reduce its revenue requirement by approximately $929,000. The Company proposes to return any excess tax collected from January 2018 through June 2018 only if the Company’s actual return on equity (“ROE”) exceeds its allowed ROE for 2018. Finally, the Company proposes to return approximately at $2.3 million in excess ADIT over yet to be determined amortization periods, through a credit to its Local Distribution  Adjustment Clause starting in November 2018.

Aquarion Water Company of Massachusetts, Inc.: As noted in this February 9, 2018 Aquarion Water Company of Massachusetts, Inc. filing:

Specifically, with this Motion, the Company is requesting to amend its initial filing submitted to the Department on April 13, 2017 to incorporate certain changes to the request for a base-rate change (the “Amendment”). Collectively, the changes to the Company’s initial filing proposed in this Amendment reduce the Company’s requested rate relief from $2.347 million to $2.121 million, or by $226,000. The reduction of the proposed requested increase is enabled by the federal “Tax Cuts and Jobs Act,” enacted December 22, 2017 (“2017 Tax Act”), along with other circumstances. 

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


Delaware 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 Tuesday, September 7th, 2021, 10:09 AM PERMALINK

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

If President Biden and Sens. Thomas Carper and Chris Coons hike the corporate income tax rate, Delaware 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 Delaware 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 Delaware Public Service Commission, Delmarva, Artesian Water Company, Long Neck Water Company, Suez Water, Chesapeake Utilities, Sussex Shores and Tidewater Utilities passed along tax savings to their customers. 

Delmarva (Delaware): As noted in this Delaware Public Service Commission document

Staff of the Delaware Public Service Commission and the Division of the Public Advocate executed a settlement Wednesday that will result in a rate reduction of $6.85 million for Delmarva Power customers.

The settlement resolves a pending rate increase request from Delmarva that initially included $31 million in distribution costs to be passed on to electric consumers. Earlier this year, the Public Service Commission approved a petition from the Public Advocate requesting a reduction in Delmarva rates as a result of savings realized by the company due to the federal Tax Cuts and Jobs Act enacted last fall. The petition was bolstered by a collection of supportive public comments, including a letter signed by 38 Delaware state legislators led by representatives John Kowalko and Kimberly Williams.

 ---

According to the settlement, instead of an initial proposed $65 per year (4.7%) increase for typical Delmarva electric customers, they will see a more than $15 annual decrease in their electric costs (-1.4%.) The settlement has been signed by Delmarva Power, Commission staff, the Public Advocate, and the Delaware Energy Users Group. Other parties included the Department of Natural Resources and Environmental Control and Rep. Kowalko. The Hearing Examiner in this proceeding and the five-member Public Service Commission are responsible for ultimate approval of the settlement.

Artesian Water Company (Delaware): As noted in this Delaware Public Service Commission document

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

Long Neck Water Company (Delaware): As noted in this Delaware Public Service Commission document:

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

 

Suez Water (Delaware): As noted in this Delaware Public Service Commission document:

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

Chesapeake Utilities (Delaware): As noted in this Delaware Public Service Commission document:

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

Sussex Shores (Delaware): As noted in this Delaware Public Service Commission document:

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

Tidewater Utilities (Delaware): The utility passed along savings to customers. As noted in this Delaware Public Service Commission document:

The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle: 

Utility Company

Average Usage Billing Cycle Savings

Yearly Residential Customer Savings

Artesian Water Company

$2.35 per bill (4.58% bill savings)

$28.20

Long Neck Water Company

$2.04 per bill

$24.48

Suez Water

$1.71 per residential bill (4.5% bill savings)

$20.52

Chesapeake Utilities

$1.52 per residential bill (1.57% bill savings)

$18.20

Sussex Shores

$1.71 per residential bill

$6.84 (billed quarterly)

Tidewater Utilities

$8.17 per residential bill (4.21% bill savings)

$32.68 (billed quarterly)

 

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


Hawaii 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 Monday, September 6th, 2021, 2:53 PM PERMALINK

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

If President Biden and Sens. Mazie Hirono and Brian Schatz hike the corporate income tax rate, Hawaii 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 Hawaii 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 Hawaii Public Utilities Commission, Hawaiian Electric, Maui Electric and Hawaii Electric Light passed along tax savings to their customers. 

Hawaiian Electric: As noted in this March 9, 2018 Hawaiian Electric press release:

Customers of Hawaiian Electric Company will see their bills fall as the result of an updated base-rate adjustment approved by the Public Utilities Commission (PUC) on Friday.

Changes in federal tax law reduced the corporate tax bill of Hawaiian Electric and the company announced in January it planned to pass on the savings to customers.

In February, the PUC approved an interim rate that increased the typical Oahu monthly residential bill for 500 kilowatt hours by $2.60, a 2.3 percent increase. It was the first increase to base rates in six years.

At the time, Hawaiian Electric said it was continuing to review the impact of the new tax law and that an updated rate filing would be made once the amount to be returned to customers was calculated. Hawaiian Electric made similar rate reductions in 1987 and 1989 following changes to federal tax law.

Under the new base rate approved Friday, the impact of the reduced tax collection is about $3.36 per month, resulting in the typical Oahu residential bill falling by about 76 cents from what it had been before the February rate increase.

Maui Electric: As noted in this January 10, 2018 Hawaiian Electric press release:

The 460,000 customers of the Hawaiian Electric Companies could see lower electric bills as a result of the federal corporate income tax cut. Changes to federal tax law will lower corporate rates from 35 percent to 21 percent starting this year. That is expected to result in a lower tax bill for Hawaiian Electric, Maui Electric and Hawaiʽi Electric Light. State and federal taxes are included in the base electric rate and with a lower federal tax, the tax rate imbedded in the bill will be reduced. “We’re in the process of analyzing the impact of the tax overhaul but it’s pretty clear at this point that this will benefit most customers,” said Tayne Sekimura, senior vice president and chief financial officer of the Hawaiian Electric Companies. “We will work with our regulators and the Consumer Advocate to determine the exact amount of the tax reduction and the best way to pass on the savings.” Any change in the base rate is subject to the approval of the Public Utilities Commission, which will also determine the timing of any change in rates.

Hawaii Electric Light: As noted in this March 28, 2018 Hawaiian Electric press release:

Hawaii Electric Light customers will see lower electric bills if a rate adjustment proposal submitted to the Public Utilities Commission (PUC) is approved.

The proposal will lower the typical bill for a Hawaii Island residential customer using 500 kilowatt hours by $4.97 a month. The effective date of the new rate will be determined by the PUC.

Changes in federal tax law reduced Hawaii Electric Light's corporate tax bill. In January, the company announced it planned to pass on the savings to 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


Nebraska 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 Monday, September 6th, 2021, 2:48 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, Nebraska 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 Nebraska 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 Nebraska Public Service Commission, Black Hills Gas Distribution, LLC and Black Hills/Nebraska Gas Utility Company passed along tax savings to their customers.

Black Hills Gas Distribution, LLC: As noted in this June 19, 2018 Nebraska Public Service Commission document

There is a benefit to be realized by both Black Hills entities named in this docket as a result of the reduction in the federal corporate income tax rate from 35% to 21%. This benefit should be passed on to Black Hills customers. 

Under the plan proposed by the parties in the Stipulation, BHE would credit customers through a combination of fixed bill credits and volumetric bill credits. BHGD would only provide a fixed credit to its customers, with no volumetric component, due to the operation of the Choice Gas supply program. 

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For BHGD, the total amount to be refunded would be approximately $926,691. The average residential customer of BHGD would receive $9.15 annually. The average small commercial customer would receive $15.87 annually. The average large commercial customer would receive $93.39 annually. 

Black Hills/Nebraska Gas Utility Company: As noted in this June 19, 2018 Nebraska Public Service Commission document

There is a benefit to be realized by both Black Hills entities named in this docket as a result of the reduction in the federal corporate income tax rate from 35% to 21%. This benefit should be passed on to Black Hills customers. 

Under the plan proposed by the parties in the Stipulation, BHE would credit customers through a combination of fixed bill credits and volumetric bill credits. BHGD would only provide a fixed credit to its customers, with no volumetric component, due to the operation of the Choice Gas supply program. 

For BHE, the total amount to be refined would be approximately $2,287,403. The average residential customer would receive a total of approximately $9.53 annually. The average commercial/industrial customer would receive a total of approximately $22.65 annually. The average Energy Options Firm customer would receive a total of approximately $39.80 annually.

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


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