John Kartch

South Dakota 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, 12:00 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, South 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 six South 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 South Dakota Public Utilities Commission, Black Hills Energy, MidAmerican Energy Co., Montana-Dakota Utilities Co., NorthWestern Energy, Otter Tail Power Company and Xcel Energy passed along tax savings to their customers.

Black Hills Energy: As noted on the Black Hills Energy Website:

South Dakota customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ October 2018 bills. 

The settlement agreement provides for the benefits of tax reform for 2018 to be passed on to customers through a one-time credit on their October bill. The aggregate 2018 benefit for all customers is estimated at $7.7 million. For 2019, the settlement agreement authorizes an $8.9 million aggregate reduction in base rates for customers. This reduction will be reflected on customers’ monthly bills beginning in January 2019.

Xcel Energy: As noted in this July 10, 2018 KSOO article excerpt:  

As a result of tax reform Xcel Energy will be giving money back to you.

Xcel Energy will soon distribute approximately $10.9 million to all South Dakota customers as a result of the Federal Tax Cuts and Jobs Act. All Xcel Energy customers in the state will receive a one-time credit on their bills.

The estimated refund for a residential customer will average approximately $55.73, but will vary based on each customer’s actual usage.

MidAmerican Energy Co.: As noted in this May 15, 2019 South Dakota Public Utilities Commission document:

MidAmerican Energy Co. customers will receive a refund and rate reduction as the result of action by the South Dakota Public Utilities Commission at their regular meeting in Pierre on May 14. The approved settlement agreement, presented jointly by PUC staff and MidAmerican Energy, specifies the company will refund $3,308,988 to its South Dakota natural gas customers and $921,476 to its South Dakota electric customers.

Additionally, the commission approved reductions to MidAmerican Energy’s base rates. Natural gas rates will be reduced by $1,205,376 while electric rates will see a $359,811 reduction. The settlement also includes a revision to the energy cost adjustment related to the company’s production tax credits in consideration of the reduced federal income tax rate.

Montana-Dakota Utilities Co.: As noted in this October 16, 2018 South Dakota Public Utilities Commission document

This week the South Dakota Public Utilities Commission approved a refund and reduction of rates for Montana-Dakota Utilities Co. customers as a result of the federal tax cuts enacted late last year.

The total refund to be distributed among Montana-Dakota’s natural gas customers is $1,326,915; the company will refund $591,424 to electric customers. Refunds will appear as a credit on customer accounts in mid-February. An average residential natural gas customer will receive an estimated $14.05 refund; an average residential electric customer will receive an estimated $41.84 refund.

NorthWestern Energy: As noted in this September 18, 2018 Associated Press article excerpt:

State regulators have approved an agreement with NorthWestern Energy to refund roughly $3 million to customers after last year’s federal tax cuts.

The South Dakota Public Utilities Commission said Tuesday that commissioners voted to accept the settlement agreement, which also bars rate hikes until 2021. The refund will be roughly $18 for an average household electric customer and about $9 for an average residential natural gas buyer.

Otter Tail Power Company: As noted in this April 21, 2018 Otter Tail Power Company press release

Today Otter Tail Power Company filed a request with the South Dakota Public Utilities Commission (SDPUC) to increase its rates. The filing starts a nearly year-long process, often referred to as a rate case, during which the SDPUC first reviews the costs the company incurs to provide customers with energy and related services and then determines how much customers should pay for those services.

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“Because of the Tax Cuts and Jobs Act we were able to offset some of the cost to provide service to South Dakota customers,” said Rogelstad. “We determined that reducing our overall rate increase request by more than $1 million is the most efficient and effective means of returning the cost-savings benefits to our 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.


Wyoming 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, 11:37 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, Wyoming 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 Wyoming 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 Wyoming Public Service Commission, Black Hills Energy, Black Hills Wyoming Gas, LLC, Montana-Dakota Utilities Co. and Rocky Mountain Power passed along tax savings to their customers.

Black Hills Energy: As noted in this September 23, 2019 ShortGO article:

Black Hills Energy’s Cheyenne electric utility customers are seeing benefits of the federal corporate tax rate reduction from 35 percent to 21 percent on September bills. The Wyoming Public Service Commission (WPSC) approved a proposal to return the tax savings stemming from the Tax Cuts and Jobs Acts for 2018 and 2019 in the form of a one-time bill credit to customers on their September bills.

The residential customer credit is $83.62, the commercial customer credit is $147.37, the Secondary General customer credit is $3,586.24, and the Primary General Service customer credit is $32,810.64. Customers will see slightly different amounts on their bill based on the refund impacts on taxes and fees included on the bill.

Black Hills Wyoming Gas, LLC: As noted in this March 10, 2020 Black Hills Wyoming Gas document:

The TCJA Amortization Credit refunds the net Non-Protected excess deferred income tax items owed to customers resulting from the Tax Cuts and Jobs Act. These tax items include the Non-Protected Property Rate Base amounts owed to customers, the Non-Protected Non-Property Rate Base amounts owed by customers, and the Non-Refunded ARAM from 2018 and 2019 owed to customers. The total amount to be returned to customers through the TCJA Amortization Credit is $1,672,740 as approved by the Commission in Docket No. 30026-2-GR-19.

Montana-Dakota Utilities Co.: As noted in this Montana-Dakota Utilities Co. document:

Wyoming customers of Montana-Dakota Utilities Co. (Montana-Dakota) who were billed for electric service during the months of January 2018 through April 2019 will see a one-time bill credit on their electric service bill issued between July 25, 2019 and August 26, 2019. This refund is associated with the Tax Cuts and Jobs Act of 2017 passed into law in late December 2017. 

On June 13, 2018, Montana-Dakota filed an application with the Wyoming Public Service Commission (Commission) to update the Company’s electric rates in response to the passage of the Tax Cuts and Jobs Act of 2017 and the Commission’s Order  Requiring Montana-Dakota to File its Tax Assessment Plan and Create a Deferred Regulatory Liability Account issued on December 29, 2017. On April 8, 2019, the Commission authorized an overall decrease in the Company’s electric service rates to be effective May 1, 2019 and a Tax Cuts and Jobs Act Refund for customers who were billed for electric service January 2018 through April 2019 to be applied to customers’ accounts no later than August 1, 2019. The bill credit includes interest at the Commission approved interest rate. New Tax Cuts and Jobs Act Refund for Wyoming Customers for January 2018 through April 2019 Electric Service Electric service rates were implemented May 1, 2019. 

The electric rate refund plan approved by the Commission provides for the refunding of $1,614,096 to Wyoming electric service customers through a one-time bill credit on their electric bill to be applied by August 1, 2019. Each customer’s refund is based on their January 2018 through April 2019 consumption.

The bill credit is shown as a separate line item in the Account Summary section of your bill and will be identified as “Tax Cuts and Jobs Act Refund”.

Rocky Mountain Power: As noted in this April 17, 2019 Wyoming Public Service Commission document

On May 16, 2018, the Company submitted an application proposing a new Tariff Schedule 197, 2017 Federal Tax Act Adjustment, to return the benefits of the 2017 Tax Cuts and Jobs Act to customers in Docket No. 20000-536-ER-18. The Company included, as part of its 3 application, a stipulated settlement agreement (“Stipulation”) between Rocky Mountain Power and the Wyoming Industrial Energy Consumers (“WIEC”) and a request to (1) reduce customer rates by $22.5 million; and (2) offset the 2018 Energy Cost Adjustment Mechanism (“ECAM”) deferral balance, for which the Company sought recovery in Docket No. 20000-535-EA-18 (“2018 ECAM”), by $3.6 million—both with benefits or savings resulting from the 2017 Tax Cuts and Jobs Act.

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On March 15, 2019, the Commission issued its Final Order in the docket and approved the part of the Stipulation in which parties agreed to refund $22.5 million of the tax benefits to customers until the next general rate case using average-of-period rate base calculations and rejected the part of the Stipulation in which parties agreed to use some of the benefits to automatically offset future costs related to the ECAM and Energy Vision 2020 projects. The Commission indicated instead that it would consider them in future, separate applications.

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


Connecticut 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, 11:00 AM PERMALINK

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

If President Biden and Sens. Chris Murphy and Richard Blumenthal hike the corporate income tax rate, Connecticut 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 eight Connecticut 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 Connecticut Public Utilities Regulatory Authority, AVANGRID, Eversource Energy, Connecticut Light & Power, Yankee Gas, Aquarion Water Company, Connecticut Natural Gas, Southern Connecticut Gas and Connecticut Water Company passed along tax savings to their customers. 

AVANGRID: As noted in this January 11, 2018 Connecticut Post article excerpt

Avangrid stated it will pass to its electricity and gas customers the full benefit of savings it will realize from the federal Tax Cuts and Jobs Act, with the Orange-based company’s service area covering portions of the New Haven and Bridgeport areas.

Avangrid issued a statement Wednesday night confirming the policy as “a matter of fairness,” more than a week after the Connecticut Public Utilities Regulatory Authority stated it would review Avangrid’s rates and those of other Connecticut electricity and gas utilities, with federal taxes a factor in the rates approved by PURA.

Avangrid subsidiaries include United Illuminating, Southern Connecticut Gas and Connecticut Natural Gas, as well as Central Maine Power and Maine Natural Gas; Berkshire Gas in Massachusetts; and New York State Electric & Gas and Rochester Gas & Electric.

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Under the new tax law, U.S. companies will pay a 21 percent rate on their corporate income taxes, down from 35 percent. In December, PURA approved electricity rates for United Illuminating amounting to $375 million in 2018. The new federal tax rate would reduce that total by between $10 million and $11 million, according to Rich Sobolewski, supervisor of utility financial analysis for the office of Connecticut Consumer Counsel Elin Swanson, wiping out nearly the entirety of an $11.5 million distribution increase PURA had approved for this year.

Eversource Energy: As noted in this April 18, 2018 New Haven Register article excerpt

State utility regulators have cut an electric distribution rate increase Eversource Energy had sought by more than half.

Connecticut’s Public Utilities Regulatory Authority issued its final ruling on a distribution rate increase request that Eversource Energy filed in late November 2017. The Hartford-based utility originally had requested a rate increase that would have brought in $336.9 million in additional revenue over three years, but PURA’s commissioners ruled that the company should only get $127.7 million more.

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“There was some hiring that they had originally planned to do, but didn’t,” Sobolewski said of Eversource. “And the impact of the (federal) corporate tax change knocked off about $55 million from their original request."

Connecticut Light & Power: As noted in this Connecticut State Office of Consumer Counsel document:

PURA approved a Settlement Agreement between Eversource, the Office of Consumer Counsel (OCC) and the Prosecutorial Staff of PURA (PRO) for rates effective April 1, 2018 that contained approximately $55 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential electric bill for CL&P/Eversource customers by approximately $2.00 per month and the average Business (Commercial) customer by approximately $15.00 per month.

Yankee Gas: As noted in this Connecticut State Office of Consumer Counsel document:

PURA approved a Settlement Agreement between Yankee Gas, the Office of Consumer Counsel (OCC) and the Prosecutorial Staff of PURA (PRO) for rates effective November 15, 2018 that contained approximately $8.7 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential gas bill for Yankee Gas customers by approximately $2.25 per month.

Aquarion Water Company: As noted in this Connecticut State Office of Consumer Counsel document:

PURA required AWC to defer about $4 million annually, until the company’s next rate case, associated with reduced federal income taxes associated with the TCJA. These future credits when applied could reduce future bills for the average residential customer by about $2.75 per quarter.

Connecticut Natural Gas: As noted in this Connecticut State Office of Consumer Counsel document:

PURA approved a Settlement Agreement between CNG, the OCC and PRO for rates effective January 1, 2019 approximately $4 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential gas bill for CNG customers by approximately $1.18 per month.

Southern Connecticut Gas: As noted in this Connecticut State Office of Consumer Counsel document:

Consistent with a prior settlement agreement, SCG is required to defer the federal income tax savings until the company’s next rate case. We estimate these as approximately $5.5 million annually. These future credits when applied could reduce future bills for the average residential customer by about $1.50 per month.

Connecticut Water Company: As noted in this Connecticut State Office of Consumer Counsel document:

In August 2018, PURA approved a settlement agreement between the Connecticut Water Company and the OCC, that included an offset to rates of approximately $1.5 million for reduced income tax expenses associated with the TCJA. We estimate this reduced the average residential bill by $3.00 per quarter.

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


Maryland 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, 9:42 AM PERMALINK

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

If President Biden and Sens. Ben Cardin and Chris Van Hollen hike the corporate income tax rate, Maryland 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 Maryland 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 Service Commission of Maryland, Baltimore Gas & Electric, Potomac Electric Power Company, Eastern Shore Natural Gas, Washington Gas Light, The Potomac Edison Company and Columbia Gas of Maryland passed along tax savings to their customers.

Columbia Gas of Maryland: As noted in this April 13, 2018 Columbia Gas of Maryland press release:

Tax calculations for our customers’ rates in this filing have been made reflecting the Tax Cuts and Jobs Act of 2017 (TCJA) which was signed into law December 22, 2017. Our proposed rate adjustment reflects the new 21% corporate federal tax rate, which was reduced from 34% under the TCJA effective January 1, 2018. Additionally, customers’ bills started to reflect the new tax rate in April of 2018, and we are currently passing back to customers the difference between taxes collected at the federal 34% tax rate versus the 21% tax rate from January 1, 2018 to March 31, 2018.

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

Washington Gas lowered customers' bills earlier this year by passing along federal corporate income tax savings as a result of the Tax Cuts and Jobs Act of 2017. Maryland customers received an annual rate decrease of $14.8 million beginning February 1, 2018, or about $2.16 per month for each residential heating customer. 

Baltimore Gas & Electric: As noted in this January 4, 2019 Public Service Commission of Maryland document

The Commission, in Order No. 88975, also directed BGE to refund approximately $1.7 million to customers as a result of excess taxes recovered in January 2018, soon after the federal Tax Cuts and Jobs Act of 2017 was implemented in December 2017. The payback must occur as a one-time bill credit within 60 days of the order.

Potomac Electric Power Company: As noted in this May 31, 2018 Public Service Commission of Maryland document

The Settlement results in a base rate decrease of $15,000,000. Although the Company revised its original request of $41,439,000 to $3,252,000, based largely on the impact of the Tax Cuts and Jobs Act of 2017 (“TCJA”), the rate decrease of the magnitude approved by this Order is significant.

Eastern Shore Natural Gas: As noted in this March 5, 2018 Public Service Commission of Maryland document:

Additionally, the settlement provides that ESNG is required to further reduce the 
settlement rates to reflect its new federal income tax rate, which will reflect impacts of the federal Tax Cuts and Jobs Act.

The Potomac Edison Company: As noted in this March 22, 2019 Public Service Commission of Maryland document:

The Company stated that the filing of its base rate case was driven by (i) investments in the electric distribution system to improve service and reliability for its customers; (ii) the desire to pass on to ratepayers the savings from the Tax Cut and Jobs Act of 2017 (“TCJA”) in a manner that is based on up-to-date, fully-vetted revenue needs and class cost allocations; and (iii) revisions to Company Tariffs necessitated by the Company’s divestiture of generation assets and the implementation of electric restructuring policies.

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


Wisconsin 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 Sunday, September 5th, 2021, 5:07 PM PERMALINK

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

If President Biden and Senator Tammy Baldwin hike the corporate income tax rate, Wisconsin 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 Wisconsin 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 Service Commission of Wisconsin, Alliant Energy, Madison Gas & Electric, Superior Water, Light & Power, We Energies, and Wisconsin Public Service Corporation passed along tax savings to their customers.

Alliant Energy, Wisconsin: As noted in this May 26, 2018 Wisconsin State Journal article excerpt:

The average residential customer of Madison-based Alliant Energy can expect some of the highest amounts back, with a one-time credit of $22.92 on their electric bills and $6.99 for natural gas during the June billing cycle, followed by monthly credits of $4.11 for electricity and $1.15 for natural gas. That totals $40 million in refunds for 2018.

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Alliant said its retail electric costs will rise by a total of $194 million in 2019 and 2020 as it brings on the 700-megawatt, natural gas-fueled West Riverside power plant near Beloit in the second half of 2019.

Alliant’s natural gas expenses are projected to rise $24 million over that period.

But rather than raising customer rates, the utility said it will cut costs via fuel savings and income tax reductions.

Madison Gas & Electric: As noted in this As noted in this May 26, 2018 Wisconsin State Journal article excerpt:

Madison Gas & Electric will return a one-time credit of $9.23 to its residential electric customers and $4.80 to natural gas customers by July 31. After that, electric bills will dip about $1.56 a month and gas bills by about $1 a month in 2018, MGE spokesman Steve Schultz said. That totals about $8 million worth of credits, according to PSC calculations.

The money represents excess taxes the companies have been collecting from ratepayers. Utility rates, set in advance, anticipated a 35 percent corporate tax rate. But Congress, in its tax reform package, lowered the rate to 21 percent.

Superior Water, Light & Power: As noted in this May 29, 2018 Superior Telegram article excerpt:

Residential customers of Superior Water, Light & Power will receive a $31.80 lump-sum credit on July bills as a result of savings accrued from the tax law Congress passed last year, according to an order issued Thursday by the Public Service Commission.

Customers in all categories will receive lump-sum and ongoing credits for each provided service. The largest electrical customer will receive a $61,807 lump sum credit and other non-residential customers will receive lump-sum electric credits varying from $13.70 to $3,106 depending on customer classification, according to the PSC order.

SWL&P estimated its total customer credits this year at $1.322 million.

We Energies: As noted in this April 26, 2018, Milwaukee Journal Sentinel article excerpt:

We Energies electric customers will receive a one-time credit in July and a slight decrease in electric rates in subsequent months from a portion of the savings from the company's lower federal corporate tax rate, state regulators decided on Thursday.

The Public Service Commission determined that 20 percent of the immediate savings from the lower tax rate should be passed on to customers.

The remaining 80 percent of the savings will go toward paying down deferred costs that stood at $424.5 million as of Dec. 31 but that are not included in current rates.

"It will be a win-win for our customers — providing an immediate bill credit while also helping to reduce future rate increases," Cathy Schulze, a We Energies spokeswoman, said in an email.

Wisconsin Public Service Corporation: As noted in this December 19, 2019 Public Service Commission of Wisconsin document

On March, 23, 2019, WPSC requested Wisconsin jurisdictional revenue increases of $48.6 million (4.9 percent) in 2020 and $48.6 million (4.9 percent) in 2021 for its electric operations and revenue increases of $7.2 million (2.4 percent) in 2020 and $7.1 million (2.4 percent) for its natural gas operations. To accomplish an effective rate increase of 4.9 percent in each year for WPSC’s electric operations (WPSC electric), WPSC sought approval to apply $16 million of unprotected tax benefits resulting from the federal 2017 Tax Cuts and Jobs Act (TCJA) for the benefit of customers in 2020, $21 million of 2018 WPSC deferred revenue sharing benefits to customers in 2020, $7 million of 2018 excess fuel collections in 2020, and another $24 million of unprotected tax benefits in 2021. To accomplish an effective rate increase of 2.4 percent in each year for WPSC’s natural gas operations (WPSC gas), WPSC sought approval to apply $7 million of unprotected tax benefits resulting from the TCJA for the benefit of customers in 2020

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


Montanans 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 Sunday, September 5th, 2021, 3:03 PM PERMALINK

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

If President Biden and Senator Jon Tester hike the corporate income tax rate, Montana 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 Montana 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 Montana Public Service Commission, Montana-Dakota Utilities and NorthWestern Energy passed along tax savings to customers. 

Montana-Dakota Utilities: As noted in a 2018 Montana Public Service Commission release

The Montana Public Service Commission voted unanimously to approve an agreement for Montana-Dakota Utilities’ electric business to refund to consumers the benefits they received from the Tax Cuts and Jobs Act. The agreement, or Stipulation, calls for a $1.5 million consumer refund as a result of the TCJA.

NorthWestern Energy: As noted in this April 3, 2018 Billings Gazette article excerpt:

The tax savings stem from the Republican Tax Cuts and Jobs Act, which Congress passed in December and was signed into law by President Donald Trump. Federal corporate tax rates fell from 35 percent to 21 percent.

Regulated utilities like NorthWestern cannot pocket the savings, which must be shared with ratepayers, who also pay the utilities' taxes. NorthWestern has about 345,000 customers in Montana. 

NorthWestern is proposing that its natural gas customers receive direct refunds for the entire $3.154 million in tax breaks associated with the utility’s natural gas business. The company’s electric customers would receive half of the $10.8 million in tax breaks associated with NorthWestern’s electric business. Half the money would be spent removing hazard trees that pose a fire or outage risk.

“With what we proposed, for a natural gas customer, it would be about $1.18 a month. An electricity customer would be 67 cents per month,” said Butch Larcombe, NorthWestern spokesman. 

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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Maine 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 Sunday, September 5th, 2021, 1:25 PM PERMALINK

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

If President Biden and Senator Angus King hike the corporate income tax rate, Maine 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 Maine 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 Maine Public Utilities Commission, Central Maine Power Company, Emera Maine, Northern Utilities, Maine Natural Gas and Maine Water Company passed along tax savings to their customers.

Central Maine Power Company: As noted in this June 21, 2018 State of Maine Public Utilities Commission Central Maine Power Company Annual Compliance filing:

CMP will decrease distribution rates by $16,429,187 to reflect distribution revenue requirement savings associated with the Tax Act. The decrease associated with the Tax Act -4- includes the one-time deferral of Tax Act benefits of $5,641,368 associated with the period January 2018 – June 2018.

Emera Maine: As noted in this Maine Public Utilities Commission document:

On October 2, 2017, Emera Maine filed a petition for an increase its distribution rates (Docket 2017-00198). Emera Maine requested a $10 million, or 12%, increase in its overall distribution revenues. In late December 2017, while the Company’s rate request was still pending before the Commission, Congress passed the Tax Cuts and Jobs Act (TCJA) which became law on January 1, 2018. Among its provisions, the TCJA reduced the corporate tax rate from 35% to 21%. The Commission required that Emera Maine update its rate request to reflect the impact of the TCJA on its proposed rates. By Order dated June 28, 2018, the Commission authorized the Company to increase its delivery rates by $4.5 million or 5.32% as of July 1, 2018. The Commission’s decision is based on a cost of equity of 9.35%. The approved rates reflect the current federal tax rate of 21%. The Commission’s decision also required that Emera Maine defer the difference between rates based upon the 34% and 21% tax rate for the period of January 1, 2018 to June 30, 2018. By Order dated September 11, 2018, the Commission granted in part a Motion for Reconsideration from the Company, deciding to reopen the question of how the savings associated with the TCJA for the January 1, 2018 through June 30, 2018 time period should be calculated. This issue is being considered in another docket (Docket 2018-00271) in conjunction with the review of the excess deferred income taxes that resulted from the TCJA. 

Northern Utilities: As noted in this Maine Public Utilities Commission document:

On May 31, 2017, Northern Utilities requested approval for an increase in distribution rates of $6.5 million. After incorporating the effect of the TCJA and the Commission’s determinations in the case, the Commission ordered Northern to decrease its rates by $87,243 as of March 1, 2018. The Commission did not approve any rate increase associated with the adjustments presented by the Company to its test year operating revenues.

Maine Natural Gas: As noted in this Maine Public Utilities Commission document:

On January 11, 2018, the Commission opened an investigation into the impact of the TCJA on Maine Natural Gas and whether any rate adjustments are warranted (Docket 2018-00005). The Company’s rates were adjusted to reflect the effects of the TCJA in its annual rate adjustment filing (Docket 2018-00057).

Maine Water Company: As noted in this March 15, 2019 Maine Public Utilities Commission document: 

According to the Stipulation, only five MWC Divisions – Camden and Rockland, Freeport, Oakland, Skowhegan, and Millinocket – will experience significant reductions in their overall federal income tax expenses as a result of the Tax Act. MWC has agreed to record a monthly regulatory liability for the reduction in its federal income tax expense beginning January 1, 2018, and continuing through the next applicable rate case, plus carrying costs set at MWC’s last allowed weighted average cost of capital (WACC) for those five Divisions. This accumulated liability will flow back to ratepayers over a period to be decided in each Division’s next general rate case, which will be filed no later than March 1, 2022. MWC will also record excess water infrastructure surcharge revenues, including carrying costs set at their last allowed WACC, from the same five Divisions beginning January 1, 2018, and continuing until the effective date of any adjustments made to the water infrastructure surcharge in the division’s next water infrastructure surcharge filing. With respect to the four Divisions that will not book a regulatory liability but have a decrease in water infrastructure surcharge revenue as a result of the Tax Act, the Company will make a full adjustment of the water infrastructure surcharge revenue in those Divisions’ next water infrastructure surcharge filing.

Additionally, MWC will treat excess deferred income taxes (EDITs) as an adjustment to rate base in each Division. The total EDIT balance at the time of a general rate filing will be allocated to the Division seeking to increase rates using the allocation method developed in Docket No. 2017-00163 and shown in Appendix B to the Stipulation. Adjustments generated by the Tax Act related to plant assets will be returned to ratepayers using the average rate assumption method as required by the Internal Revenue Service. MWC will amortize non-plant asset EDITs over a 10-year period beginning at the conclusion of each Division’s next general rate case.

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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Colorado 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 Sunday, September 5th, 2021, 1:15 PM PERMALINK

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

If President Biden and Sens. Michael Bennet and John Hickenlooper hike the corporate income tax rate, Colorado 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 Colorado 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 Colorado Public Utilities Commission, Public Service Company Gas Department, Public Service Company Electric Department, Black Hills Energy Electric Utility, Black Hills Energy Gas Utility and Colorado Natural Gas, Inc. passed along tax savings to their customers.

Black Hills Energy Electric Utility: As noted in this January 27, 2021 Black Hills Energy news release

Black Hills Energy’s Southern Colorado electric utility residential customers will see the benefits of a federal corporate tax rate reduction in the form of a $50.32 credit on February electric bills. The bill credit is part of a plan approved by the Colorado Public Utilities Commission to return funds to customers resulting from the 2017 Tax Cuts and Jobs Act (TCJA).

As part of the same agreement, Black Hills Energy will also provide residential customers with an additional annual bill credit of approximately $5 beginning in April 2021. The credit will appear on customer bills as a separate line item: "Tax Cuts and Jobs Act Adj."

Public Service Company Gas Department: As noted in this Public Utilities Commission of Colorado document

Effective March 1, 2018, the Company’s gas rate case provisional rates will be reduced to reflect the Company’s preliminary estimate of TCJA net impacts of $20 million, as set forth in Appendix A to this Settlement Agreement. The Settling Parties acknowledge that this preliminary estimate in Appendix A is based on high level early estimates using the limited information presently available. To this end, this preliminary estimate includes a contingency to  account for uncertainty and avoid a surcharge to customers in the event the final determination of tax law reductions to rates is lower than the preliminary estimate of the reduction to provisional rates. 

Public Service Company Electric Department: As noted in this Public Utilities Commission of Colorado document:

As set forth in more detail below, the Settling Parties agree that the following TCJA benefits be delivered to Public Service’s electric customers beginning June 1, 2018: 

Black Hills Energy Gas Utility: As noted on the Black Hills Energy website:

We filed for a reduction to the general rate schedule adjustment, or GRSA, to reflect the savings associated with the federal Tax Cuts and Jobs Act. These benefits first appeared on both gas and electric customers’ July 2018 bills. 

For Colorado gas customers, the GRSA decreased from 0.827% to -2.59%. For Colorado gas distribution customers, the GRSA decreased from 8.56% to 4.41%.

Colorado Natural Gas, Inc.: As noted in this Colorado Natural Gas statement:

At Colorado Natural Gas, our goal is to provide safe, reliable, clean burning and affordable natural gas to individuals, families and businesses in underserved areas of Colorado through exceptional customer service and a commitment to community.

To achieve that goal of providing safe and reliable natural gas to tens of thousands of Coloradans for home heating, hot water, cooking and more, we must maintain and invest in more than 1,200 miles of pipeline, while continuing to provide the quality customer service you’ve come to expect from your local natural gas utility.

All this costs money, which is why we filed a natural gas rate case in May of 2018 with the Colorado Public Utilities Commission (Commission). Until our 2018 rate case, we had not changed our rates since 2013, which meant the cost of providing safe and reliable natural gas exceeded what customers were paying.

After thorough review by the Commission and ample time for public input, the rate case settlement was approved on November 1, 2018. New rates went into effect on December 1, 2018.

New Rates:

---

You may have heard about the benefits of the federal income tax reform passed in 2017. We were happy to be able to pass on those benefits to our customers through this rate case.

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


Ohioans 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 Saturday, September 4th, 2021, 12:50 PM PERMALINK

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

If President Biden and Senator Sherrod Brown hike the corporate income tax rate, California 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 Ohio 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 Utilities Commission of Ohio, Cleveland Electric Illuminating Company, Dominion Energy Ohio, Duke Energy Ohio, Inc., Ohio Edison, Toledo Edison, Vectren, Suburban Natural Gas Company, Northeast Ohio Natural Gas Corp. and South Central Power Co. passed tax savings along to their customers.

Cleveland Electric Illuminating Company: As noted in a July 2019 First Energy Corp. press release:

“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters. 

“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”

"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” 

Dominion Energy Ohio: As noted in this December 5, 2019 WKTN article:

The Public Utilities Commission of Ohio (PUCO) today adopted an agreement that authorized Dominion Energy Ohio (Dominion) to establish a credit on gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates.

Dominion will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rate. The $50.9 million credit will be passed back to all customers over a 12 month period.

Dominion will return to customers annually approximately $18.9 million, which reflects the remaining tax savings not currently accounted for in rates, on a going-forward basis, until the Commission approves updated rates through a distribution rate case. Dominion is expected to file an application with the PUCO for its next distribution rate case in 2024.

Dominion will return to customers normalized excess deferred income tax (EDIT), estimated by the utility to be approximately $416 million, over a federally prescribed time period of approximately 38 years.

Dominion will credit customers non-normalized EDIT, estimated by the utility to be approximately $181 million, over approximately a six-year period.

A residential customer will see a bill reduction of approximately $5.80 per month for the first year, a $3.15 reduction in years two through six and a $1.55 reduction in year seven and beyond. 

Duke Energy Ohio, Inc.: As noted in this April 13, 2018, Duke Energy press release:

Duke Energy Ohio customers will receive approximately $20 million in annual tax savings on their electric bills beginning this month. The bill reduction is a result of the recent Tax Cuts and Jobs Act, which federal lawmakers passed in late 2017.

"The tax act provides a unique opportunity for us to reduce customers' bills by millions of dollars," said Jim Henning, president of Duke Energy Ohio and Kentucky. "And that's exactly what we're doing here – delivering real savings to our customers."

Duke Energy Ohio also plans to lower its customers' natural gas bills by about $3 million beginning in May – subject to the approval of proposals filed with state regulators.

"The tax act reduced our corporate tax rate – and that's a benefit we are pleased to pass along to our customers," said Henning. "However, the impacts on our business and customers go far beyond the reduction in the corporate tax rate. While some of the changes reduce our federal tax liabilities over time, others could actually increase our tax obligations.

"We considered all of these scenarios as we determined the best ways to pass along the benefits of the tax act to our customers. And we continue to work through various regulatory proceedings in our efforts to ensure that our customers receive the benefits of this new law." 

Ohio Edison: As noted in this July 17, 2019 First Energy Corp. press release:

“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters. 

“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”

"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” 

Toledo Edison: As noted in this  July 17, 2019 First Energy Corp. press release:

“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters. 

“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”

"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” 

Vectren: As noted in this July 1, 2020 Ohio Public Utility Commission statement:

The Public Utilities Commission of Ohio (PUCO) today adopted an unopposed agreement authorizing Vectren Energy Delivery of Ohio (Vectren) to establish a credit on natural gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates. 

Vectren will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rates. The $6 million credit, including interest, will be passed back to customers through the end of 2021. 

Vectren will return to customers normalized excess accumulated deferred income tax (EDIT), estimated by the utility to be $74.6 million, over an approximately 25-year period.

Vectren will credit customers non-normalized EDIT of $25.9 million over a six-year period.

Each Vectren residential customer is estimated to receive approximately $270 in total credit over the duration of the refunds. 

Suburban Natural Gas Company: As noted in this September 9, 2020 Ohio Public Utility Commission statement:

The Public Utilities Commission of Ohio (PUCO) today authorized Suburban Natural Gas Company to establish a credit on natural gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates. 

Suburban will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rates. The $454,785 credit, which includes interest, will be passed back to customers over a 24-month period. 

Suburban will return to customers normalized excess accumulated deferred income tax (EDIT), estimated by the utility to be approximately $1.6 million.

Suburban will credit customers non-normalized EDIT of $233,650 over a 10-year period. 

Northeast Ohio Natural Gas Corp.: As noted in this May 20, 2020 Ohio Public Utility Commission statement:

The Public Utilities Commission of Ohio (PUCO) today authorized Northeast Ohio Natural Gas Corp. (NEO) to establish a credit on natural gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates.

NEO will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rates. The $500,423 credit, including interest, will be passed back to customers over a 12-month period.

NEO will return to customers normalized excess accumulated deferred income tax (EDIT), estimated by the utility to be approximately $2.3 million, over a federally prescribed time period.

NEO will credit customers non-normalized EDIT of $50,867 over a 72-month period.

A residential customer, using approximately 10 Mcf per month, will see a bill reduction of approximately $1.37 per month for the first year. 

South Central Power Co.: As noted in this July 24, 2018 South Central Power Co. statement

As some of the year’s highest electric bills are hitting consumers’ mailboxes thanks to near-record heat this summer, South Central Power members are getting a one-time break on transmission charges that could decrease the average member’s July bill by around $10.

The bill reduction is a result of the recent Tax Cuts and Jobs Act, which federal lawmakers passed in late 2017. “Thanks to tax savings realized by our transmission provider, we received a credit of roughly $1.7 million toward our transmission costs,” said Allison Saffle, VP of member service for South Central Power. “We’ve passed those savings directly on to consumers, who will see them reflected in lower transmission charges on this month’s bills. Going forward, the impact of the lower tax rates will be passed directly on to consumers, who will see transmission costs lowered by roughly $1 per month.” 

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


California 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 Saturday, September 4th, 2021, 12:18 PM PERMALINK

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

If President Biden and Sens. Dianne Feinstein and Alex Padilla hike the corporate income tax rate, California 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 twelve California 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 California Public Utilities Commission, California Water Service, Pacific Gas and Electric Company, Golden State Water Company, Suburban Water Systems, San Jose Water Company, California American Water Company, California-Oregon Telephone Company, Southern California Gas Company, Southern California Edison, San Diego Gas & Electric, Calaveras Telephone Company and Sierra Telephone Company passed along tax savings to their customers. 

Southern California Gas Company: As noted in this January 2020 Energy Division document:

SoCalGas tax savings from the TCJA to be refunded to ratepayers is $75 million.

California Water Service: As noted in this May 30, 2018 California Water Service press release:

California Water Service (Cal Water) submitted a filing with the California Public Utilities Commission (CPUC) yesterday to decrease revenue needed in its service areas by almost $18 million, due to changes in federal tax laws and CPUC-authorized capital equity and debt financing costs. If approved as submitted, new rates reflecting the lower tax rates and financing costs will be effective July 1, 2018.

Pacific Gas and Electric Company: As noted in this March 30, 2018, PG&E press release:

PG&E is taking action to pass along approximately $450 million in annual tax savings to its customers. As a first step, today PG&E made three separate filings requesting to pass along approximately $325 million per year in federal tax savings from the  federal Tax Cuts and Jobs Act for 2018 and 2019. PG&E has proposed to the CPUC that the benefits of the federal tax savings be used to offset expected rate increases.

Golden State Water Company: As noted in this June 13, 2018 CBS Sacramento news excerpt:

Golden State Water Company, which services Rancho Cordova, Gold River, and Arden Manor, wants to lower water rates for customers.

The water agency filed paperwork with the California Public Utilities Commission to decrease the rate by 2.88% for metered customers and 2.86% for flat-rate customers. The change, if approved, would take effect July 1, 2018.

Golden State Water made the decision to cut rates after the Tax Cuts and Jobs Act lowered its income tax rate from 35% to 21% on January 1, 2018. Golden State Water may retroactively credit customers if it determines there was a revenue surplus from January 1, 2018-June 30, 2018. It is also adjusting its rate proposal for 2019-2021, which it submitted in July 2017- before the Tax Cuts and Jobs Act was signed into law.

Suburban Water Systems: As noted in this September 24, 2020 California Public Service Commission document:

This Resolution grants Suburban Water Systems’ (Suburban) request in Advice Letter No. 348 the authority to amortize the 2019 amount of $289,879 or 0.34% of authorized revenues, recorded in the Tax Cuts and Jobs Act Memorandum Account (TCJAMA) related to the 2019 excess accumulated deferred federal income tax (ADFIT) not reflected in rates for the period January 1, 2019 through December 31, 2019. The 2019 balance of the TCJAMA will be amortized as a single monthly bill credit based on the customer’s meter size. The credit amount includes interest and is to refund the excess ADFIT related to 2019 revenue requirement not currently reflected in rates. 

San Jose Water Company: As noted in this January 16, 2020 California Public Service Commission document:

This Resolution grants San Jose Water Company’ (SJWC) request in Advice Letter No. 537 & 537A, the authority to refund the over collected amount of $6,624,690 for the period January 1, 2018 through December 31, 2018, or 1.75% of authorized revenues,recorded in the 2018 Tax Accounting Memorandum Account (TAMA). The balance is associated with changes in tax expenses resulting fromTax Cut and Jobs Act signed into law December 22, 2017 that among other matters reduced the federal corporate tax rate from 35% to 21% effective January 1, 2018. The TAMA should be closed and the balance transferred to a 2018 Tax Accounting Balancing Account to amortize the refund. The 2018 balance in the TAMA will be refunded as a one-time bill credit based on the customer’s meter size. The bill credit is effective beginning on January 21, 2020 as shown below. Any over or under refunded balance in the 2018 Tax Accounting Balancing Account once the amortization period concludes should be addressed in the context of SJWC’s 2022 Test Year general rate case.

California American Water Company: As noted in this December 13, 2018 American Water press release:

The California Public Utilities Commission (CPUC) today approved a decision in the company’s general rate case for new water and wastewater rates for customers statewide.

The company’s rate request, which was filed in July 2016, will set rates through 2020. The decision approves approximately $103 million in capital investment in infrastructure replacements and improvements in 2018 and 2019.

“We are extremely proud of our significant level of system investment, combined with operational efficiency measures and innovative technologies, to ensure continued water quality, service reliability and fire protection for the more than 600,000 Californians who depend on us every day,” said Rich Svindland, President of California American Water. “This decision enables us to continue this important work on behalf of our customers, while balancing the cost impact for them.”

The decision approves a $10.3-million annual increase in authorized water and wastewater revenues for California American Water compared to previously authorized rates in the fall of 2016. The increase reflects savings generated by changes in federal tax law from the 2017 Tax Cuts and Jobs Act and the 2018 Cost of Capital decision.

California-Oregon Telephone Company: As noted in this August 9, 2018 California Public Service Commission document:

Staff has recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Cal-Ore’s deferred income tax liability balance was $1,182,356.  On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $730,279 causing an excess deferred tax reserve of $452,077.  This $452,077 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance.  The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules.   In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM).  But if the utility does not have the appropriate vintage data to use ARAM, an alternative method based on a composite rate is allowed.   

As a result, Staff recommends the $452,077 excess deferred income tax reserve should be returned to ratepayers over the weighted average of the remaining useful life of Cal-Ore’s depreciable assets as of December 31, 2017.  Appropriately, as the excess deferred tax reserve is returned to Cal-Ore’s ratepayers, rate base will be incrementally increased by $33,737 per year (as the $452,077 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

Southern California Edison: As noted in this August 16, 2018 San Diego Union-Tribune article:

Representatives from Southern California Edison told the Union-Tribune the utility is reducing the total revenue it is requesting before the CPUC in its general rate case by about $139 million this year, about $185 million in 2019 and $235 million in 2020, largely due to the tax cut.

Without the legislation, Edison expected residential customers would see an average monthly increase of $1.51 a month this year, $5.01 in 2019 and $6.83 in 2020.

With the tax cut, the figures would drop to a 6-cents decrease per month in 2018, a $3.98 increase in 2019 and a $5.56 increase in 2020, based on average monthly usage of 550 kilowatt-hours.

San Diego Gas & Electric: As noted in this January 2020 Energy Division document:

Sempra GRC Gas Highlights:

  • Disallowed SDG&E’s request to use 2018 tax savings from Tax Cuts & Job Act (TCJA) to offset expense for helicopter for fires and liability insurance, and to refund the $12 million tax savings to ratepayers over 2 years


Calaveras Telephone Company: As noted in this August 23, 2018 California Public Service document

Staff recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Calaveras’ deferred income tax liability balance was $145,643. On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $89,956 causing an excess deferred tax reserve of $55,687. This $55,687 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance, The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules. In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM).   

Accordingly, Staff has adjusted the $55,687 excess deferred income tax reserve and returned it to ratepayers over the weighted average of the remaining useful life of Calaveras’ depreciable assets as of December 31, 2017.  Appropriately, as the excess deferred tax reserve is returned to Calaveras’ ratepayers, rate base will be incrementally increased by $10,507 per year (as the $55,687 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

Sierra Telephone Company: As noted in this August 9, 2018 California Public Service Commission document

Staff has recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Sierra’s deferred income tax liability balance was $5,131,347.  On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $3,169,361 causing an excess deferred tax reserve of $1,961,986.  This $1,961,986 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance.  The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules. In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM). But if the utility does not have the appropriate vintage data to use ARAM, an alternative method based on a composite rate is allowed.    

As a result, Staff recommends the $1,961,986 excess deferred income tax reserve should be returned to ratepayers over the weighted average of the remaining useful life of Sierra’s depreciable assets as of December 31, 2017. Appropriately, as the excess deferred tax reserve is returned to Sierra’s ratepayers, rate base will be incrementally increased by $316,449 per year (as the $316,449 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

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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