John Kartch

Tennessee 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 Saturday, September 4th, 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, Tennessee 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 Tennessee 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 Tennessee Public Utility Commission, Chattanooga Gas Company, Tennessee American Water Company, Atmos Energy Corporation, AEP Appalachian Power, and Piedmont Natural Gas Company passed along tax savings to their customers. 

AEP Appalachian Power: As noted in this February 12, 2019 AEP Appalachian Power press release

Beginning with February bills and going forward, AEP Appalachian Power customers in Tennessee will see rate reductions as a result of the Tax Cuts and Jobs Act of 2017.

Tennessee American Water Company: As noted in this August 12, 2019 Chattanooga Times Free Press excerpt:

Chattanooga water users will soon get a reprieve on their monthly bills due to cuts in corporate tax rates and investment incentives adopted by Congress nearly two years ago.

State regulators Monday approved rate changes by the Tennessee American Water Co., which should cut the typical water bill by more than 3% and save the average residential water customer in Chattanooga about 84 cents a month, effective immediately.

The Tennessee Public Utility Commission Monday voted to pass through the Chattanooga water utility's tax savings for the next three years through a 6.6% base rate reduction, which would reduce the average bill for a typical water customer using 4,154 gallons of water a month by $1.43 a month. At the same time, the state regulatory board approved the proposed capital cost recovery plan by Tennessee-American that calls for about a 2.6% increase, or 59 cents more a month, to the same average water bill.

Chattanooga Gas Company: As noted in this May 29, 2020 Chattanooga Gas Company press release

To minimize impact on customers’ bills, Chattanooga Gas is proposing accelerating the return of credits stemming from the 2017 federal Tax Cuts and Jobs Act (TCJA) to customers. The different tax savings from the TCJA would have been spread over multiple years, but Chattanooga Gas is proposing crediting all savings to customers in 2020. This allows customers to receive the benefit of the tax savings sooner and offsets a portion of the bill increase related to the ARM filing. 

Piedmont Natural Gas Company and Atmos Energy Corporation: As noted in this February 6, 2018, Tennessee Public Utility Commission Report excerpt:

During the Conference, the Commissioners voted unanimously to require Atmos Energy Corporation ("Atmos Energy"), Chattanooga Gas Company ("Chattanooga Gas"), Kingsport Power Company d/b/a AEP Appalachian Power ("Kingsport Power"), Piedmont Natural Gas Company ("Piedmont Natural Gas"), and Tennessee American Water Company ("Tennessee American Water"), to immediately apply deferred accounting treatment, specifically described herein, with respect to the impact of the lowering of the federal corporate income tax rate and to require the named public utilities to provide to the Commission no later than March 31, 2018, the amounts deferred and a proposal to reduce rates or otherwise make adjustments to account for the tax benefits resulting from the 2017 Tax Cuts and Jobs Act, Pub. L. No. 115-97 ("2017 Tax Act").

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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Missouri 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, 11:10 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, Missouri 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 Missouri 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 Missouri Public Service Commission, Ameren Missouri, Kansas City Power and Light, Missouri American Water, Spire Inc., Veolia Energy Kansas City, Inc., and Liberty Utilities passed along tax savings to their customers.

Ameren Missouri: As noted in this July 6, 2018, KTTN article excerpt:

The Missouri Public Service Commission has approved an agreement that reduces the annual electric revenues of Union Electric Company doing business as Ameren Missouri.

The rate decrease of approximately $166,500.000 reflects a reduction in the corporate tax rate from 35 to 21% as a result of the passage of the federal Tax Cuts and Jobs Act of 2017.  Residential customers using 1,000-kilowatt hours a month will see electric rates decrease by about $6.21 per month, effective August 1st.

Kansas City Power and Light: As noted in this May 16, 2018 News Tribune excerpt:

Commissioners approved a stipulation and agreement filed by KCP&L Greater Missouri Operations Company (GMO). The stipulation and agreement comes after a Staff-initiated investigation into its steam service rates after the passage of the federal Tax Cuts and Jobs Act of 2017.
 
The agreement included a 9 percent rate increase for GMO’s steam service operations as well as the elimination of the minimum coal standard and 85 percent sharing mechanism in its current quarterly cost adjustment.

Spire Inc.: As noted in this March 22, 2018 Spire press release

As a result of its recent rate case, Spire customers will pay less for safe and reliable natural gas service starting April 19. Typical residential customers in the St. Louis area will see their Spire natural gas bill decrease by approximately $2 per month. Spire bills remain lower than a decade ago, even while the company has upgraded hundreds of miles of pipeline across the region.

These savings are due primarily to the recent growth of Spire and federal tax reform. In the last five years, Spire has grown through acquisitions of natural gas utilities in Missouri, Alabama and Mississippi. Spire's growth into the nation's fifth-largest publicly traded gas utility has resulted in more than $70 million in annual savings for Missouri natural gas customers. These savings have been passed along to customers as a part of this rate case.

Spire is also the first Missouri utility to share the savings of federal tax cuts with customers. Spire asked the Public Service Commission to include the federal tax cut in the rate case to expedite savings to customers, even though the impact of tax reform fell outside the review period of the rate case.

Veolia Energy Kansas City, Inc.: As noted in this November 8, 2018 Missouri Public Service Commission document:

The agreement reflects the effect of the 2017 Tax Cuts and Jobs Act which reduced the federal corporate income tax rate from 35 percent to 21 percent for businesses, including utilities.

Missouri American Water: As noted in this May 16, 2018 News Tribune excerpt:

Water customers in Jefferson City using 5,000 gallons per month will see an increase of $4.21 per month for a total monthly bill of $40.23 plus taxes and fees, company officials said. This is an increase of approximately 11.7 percent.
 
"The rate request was in response to approximately $207 million of infrastructure investments made by Missouri American throughout its Missouri service areas that were not previously reflected in rates, and $48 million of previously approved Infrastructure System Replacement Surcharge investments," said Missouri American spokesman Brian Russell. "The approved rates reflect savings of $18 million for our customers due to the enactment of the Tax Cuts and Jobs Act of 2017.

Liberty Utilities: As noted in this June 7, 2018 Missouri Public Service Commission document

The agreement reflects the impact of the reduction in the corporate tax rate from 35% to 21% resulting from the federal 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.

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Louisiana 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, 10:44 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, Louisiana 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 Louisiana 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 Louisiana Public Service Commission, Entergy Louisiana, Entergy New Orleans, Cleco Corporation, Southwestern Electric Power Company, Atmos Energy, Ascension Wastewater Treatment, Inc., Pierre Part Natural Gas Company, Inc. and South Coast Gas Co.  passed along tax savings to their customers.

Entergy New Orleans: As noted in this April 11, 2018 Entergy New Orleans press release:

Entergy New Orleans filed with the New Orleans City Council Monday its proposal for implementing the benefits of the recent federal tax reform legislation. If approved by the council, customers would realize approximately $47 million annually in near-term tax savings and an additional $71 million in savings over the longer term.

"We're working to ensure that our customers receive timely benefits from the new tax reform legislation," said Charles Rice, president and CEO of Entergy New Orleans, LLC. "We're glad to pass on these additional savings by reducing rates below what they otherwise would be, especially during the hot summer months when energy usage rises along with the thermometer."

Cleco Corporation: As noted in this July 10, 2019 KTBS News excerpt:

SWEPCO and CLECO customers will get a break on their monthly bills in the coming months thanks to lower federal taxes, Louisiana Public Service Commissioner Foster Campbell announced Wednesday.

For the average SWEPCO customers, bills will decline more than $13 per month for the next three months. For CLECO customers, bills will go down more than $12 per month for the next 12 months.

To be more specific, an average SWEPCO residential customer using 1,282 kilowatt-hours will receive a credit of $13.62 on their August, September and October electric bills, while an average CLECO residential customer using 1217 kilowatt-hours will get a $12 credit beginning next month and running through July 2020.

Extending the benefit, average SWEPCO bills for November 2019 through July 2020 will reflect reductions of $3.03 each month.

The overall impact is a reduction of $24.4 million for SWEPCO’s 231,000 Louisiana customers and a drop of $84 million for CLECO’s 285,000 customers.

Entergy Louisiana: As noted in this April 18, 2018 Entergy Louisiana press release

Entergy Louisiana customers will see a series of rate reductions over the remainder of 2018 under an agreement approved today by the Louisiana Public Service Commission.

The first of the reductions will occur in May as a result of $210 million in federal tax reform-related savings, $105 million of which will be returned to customers over the next eight months, with the remaining half of these savings returned to customers over the following four years.  As a result, a typical residential customer using 1,000 kWh per month will see a roughly $4.20 decrease on monthly bills from May through December of this year.

A second reduction of approximately $2 per month on residential bills will occur in September 2018 as a result of additional credits tied to the Tax Cuts and Jobs Act approved by Congress in late 2017. At the same time, Entergy Louisiana will begin realizing approximately $130 million in annual tax savings to offset the cost of upgrading infrastructure.

“Along with customer refunds, tax reform also helps provide us the ability to invest in modernizing our system for the benefit of customers while maintaining some of the lowest rates in the country,” Phillip May, president and CEO of Entergy Louisiana, said

Southwestern Electric Power Company: As noted in this July 10, 2019 Shreveport Times excerpt:

Average SWEPCO customers will see their monthly bills decline more than $13 per month for the next three months due to lower federal taxes paid by SWEPCO, according to Public Service Commissioner Foster Campbell.

An average SWEPCO residential customer using 1,282 kilowatt-hours will receive a credit of $13.62 on their August, September and October electric bills. 

Extending the benefit, average SWEPCO bills for November 2019 through July 2020 will reflect reductions of $3.03 each month.

The overall impact is a reduction of $24.4 million for SWEPCO’s 231,000 Louisiana customers.  Exact impacts for customers will be based on their individual consumption.

Atmos Energy: As noted in this February 14, 2018 Louisiana Public Service Commission document

Income taxes, like all other prudently incurred costs, are passed through to our customers through our rates. Atmos Energy is committed to ensuring customers receive the full benefit of the changes in the utility’s cost of service resulting from the TCJA. As discussed in more detail below, the annual rate stabilization clause (“RSC”) process allows changes in the Company’s cost of service to be promptly reflected in its rates each year, as opposed to waiting for a general rate case. Through Atmos Energy’s RSC filing on December 22, 2017 (Trans La) and April 1, 2018 (LGS), the comprehensive impacts of TCJA will be reflected in customer rates as early as July 1, 2018, as described further below. However, if the Commission desires a quicker impact to rates, the Company is amenable to discussing accelerated solutions that will permit the current portion of the income tax expense savings to be implemented sooner. Below is a description of how these savings will be incorporated into Atmos Energy’s rates in the Louisiana Gas Service Rate Division (“LGS”) and the Trans Louisiana Gas Division (“TransLa”). 

A. LGS 

The Company will file its annual rate stabilization clause (“RSC”) filing before April 1, 2018. Included in this year’s filing will be an update to the federal income tax rate from 35% to 21% Based on the change in deficiency that results from the 35% to 21% income tax rate, the reduction to the 2017 LGS RSC filing for this item is expected to be approximately $5.9 million. 

The Company recorded excess deferred income taxes (“EDIT”) in its quarter ended December 31, 2017 related to LGS in the amount of $38.3 million. An estimate of the amortization period is not available at the time of this report. However if the EDIT is amortized over a period of forty years the annual reduction to cost of service is an additional $950,000, with a corresponding adjustment to rate base. 

The Company is working to establish an initial estimate for incorporating the EDIT into the RSC filing. The software modifications to incorporate the amortization into the books and records will take some months to perform. Therefore, the Company believes that an initial estimate is the best approach for this year’s filing. Any variances in the estimated amortization and actual amortization can be trued—up on a subsequent RSC filing. 

B. TransLa 

The Company filed its RSC filing on December 22, 2017; thus, the filing did not incorporate the impact of TCJ A. However, the Company and Commission Staff have agreed (Docket U—347l4) to suspend the April 1, 2018 implementation of rates to allow additional time for Staff’s consultant to conduct proper discovery and to incorporate the impacts of TC] A into the filing. The effect of reducing the income tax rate from 35% to 21% reduces the TransLa filing by approximately $2.5 million. 

The Company recorded EDIT in its quarter ended December 31, 2018 related to Trans La in the amount of $23.3 million. An estimate of the amortization period is not available at the time of this report. However if the EDIT is amortized over a period of forty years the annual reduction to cost of service is an additional $575,000, with a corresponding adjustment to rate base. 

The Company is working to establish an initial estimate for incorporating into discovery provided in the Trans La RSC filing. The software modifications to incorporate the amortization into the books and records will take some months to perform. Therefore, the Company believes that an initial estimate is the best approach for this year’s filing. Any variances in the estimated amortization and actual amortization can be trued—up on a subsequent RSC filing. 

Ascension Wastewater Treatment, Inc.: As noted in this March 20, 2018 Louisiana Public Service Commission document

In summary, AWT’s 2018 estimated current income tax expense savings resulting from the passage of the TCJA totals $53,604 for an estimated $0.31 monthly rate reduction per ratepayer. All requirements to both record and adjust any regulatory liabilities as it relates to the reduced federal rate of 21% along with any excess accumulated deferred income taxes will be made, accordingly, subject to AWT’s ability to verify the actual amount of tax savings.

Pierre Part Natural Gas Company, Inc.: As noted in this March 20, 2018 Louisiana Public Service Commission document

Pierre Part further understands there will be two impacts from the tax reduction. First, there is a reduction in annual federal tax expense incurred by Pierre Part. Second, there is a reduction in the amount of accelerated deferred taxes that Pierre Part is required to reflect on its balance sheet and a corresponding increase in rate base. Each of these impacts is discussed below. 

Regarding the reduction in annual federal tax expense, Pierre Part estimates the reduction will be approximately $5,075 based on June 1, 2017 - July 31, 2018 fiscal year data. Current rates are based on federal tax expense of $12,689, which would be reduced to 7,615 based on a 21% tax rate, for a difference of $5,075.

Regarding the reduction in deferred taxes, Pierre Part estimates the reduction would be approximately $853 per year. The reduction of deferred taxes on the balance sheet would be $22,800, amortized over 25 years, for an annual amount of $853 after offsetting the corresponding effect of increased base rate.

South Coast Gas Co.: As noted in this March 20, 2018 Louisiana Public Service Commission document

South Coast further understands there will be two impacts from the tax reduction. First, there is a reduction in annual federal tax expense incurred by South Coast. Second, there is a reduction in the amount of accelerated deferred taxes that South Coast is required to reflect on its balance sheet and a corresponding increase in rate base. Each of these impacts is discussed below. 

Regarding the reduction in annual federal tax expense, South Coast estimates the reduction will be approximately $88,131 based on June 1, 2017 — July 31, 2018 fiscal year data. Current rates are based on federal tax expense of $220,329, which would be reduced to $132,198 based on a 21% tax rate, for a difference of $88,131. 

Regarding the reduction in deferred taxes, South Coast estimates the reduction would be approximately $10,146 per year. The reduction of deferred taxes on the balance sheet would be $271,268, amortized over 25 years, for an annual amount of $10,146 alter offsetting the corresponding effect of increased rate base.

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


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

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Posted by John Kartch, Michael Mirsky on Friday, September 3rd, 2021, 2:57 PM PERMALINK

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

If President Biden and Sens. Maria Cantwell and Patty Murray hike the corporate income tax rate, Washington 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 Washington 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 Washington Utilities and Transportation Commission, Avista Corporation, Puget Sound Energy Inc., Cascade Natural Gas, Pacific Power and Light and Northwest Natural Gas Company passed along tax savings to their customers.

Puget Sound Energy Inc.: As noted in this April 30, 2018 the Seattle Times excerpt:

Puget Sound Energy (PSE) says it will pass all of a $96.5-million cut in federal taxes on to electric and natural gas customers.

The tax savings will cut residential electric bills by $3.50 a month and trim natural gas bills by $1.83 a month, according to a written statement from the organization. Those rate adjustments will take effect Tuesday.

Pacific Power and Light: As noted in this December 22, 2020 DailyEnergyInsider excerpt:

The first general rate case filed by Pacific Power in Washington since 2014, it also accelerates pass-through of remaining federal tax savings from the 2017 Tax Cuts and Jobs Act (TCJA) and depreciation of coal plant investments to remove coal, almost doubles the amount of wind generation being brought to Washington, establishes an advisory committee to oversee the development of new assistance programs for low-income customers and creates a new, flattened rate structure.

Cascade Natural Gas: As noted in this December 2019 Tri-Cities Area Journal of Business excerpt:

Rate changes for Cascade primarily are due to the purchased gas cost and decoupling mechanism, but they also include cost recovery for pipeline replacement, conservation programs, low-income assistance, and refunds related to excess deferred income taxes due to the Tax Cuts and Jobs Act. Kennewick-based Cascade serves more than 220,000 residential and business customers in 68 communities throughout the state, including Kennewick, Walla Walla, Sunnyside, Yakima, Wenatchee, Aberdeen, Bellingham, Bremerton, Longview, Moses Lake and Mount Vernon.

Northwest Natural Gas Company: As noted in this Northwest Natural Gas Company document:

The Order authorizes NW Natural to provide federal tax reform benefits to customers related to the Tax Cuts and Jobs Act enacted in December 2017. The Order directs NW Natural to provide customers with a rate reduction of $2.1 million over one year to reflect the benefit of the lower federal corporate income tax rate accumulating from January 1, 2018 through October 31, 2019, and provides an additional annual rate reduction initially set at approximately $0.5 million to reflect a benefit from the remeasurement of deferred tax liabilities of approximately $15.0 million.

Avista Corporation: As noted in this April 27, 2018 Avista press release:

Avista’s (NYSE:AVA) electric and natural gas general rate cases have concluded, with an order issued by the Washington Utilities and Transportation Commission (Commission or UTC). The Commission approved one-time electric and natural gas rate adjustments which will take effect May 1, 2018.

The Commission’s order approved electric rates designed to increase annual billed revenues by $10.8 million, or 2.1 percent and natural gas rates designed to decrease annual billed revenues by $2.1 million, or 1.6 percent. These revenues include the return to customers through base rates of approximately $26.9 million for electric service, and $5.5 million for natural gas service, as a result of the federal Tax Cuts and Jobs Act, which went into effect on Jan. 1, 2018.

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


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

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Posted by John Kartch, Michael Mirsky on Friday, September 3rd, 2021, 12:39 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, Arkansas 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 Arkansas 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 Arkansas Public Service Commission, Entergy Arkansas, Center Point Energy, Black Hills Energy, Oklahoma Gas & Electric, Arkansas Oklahoma Gas and Southwestern Power Electric Company passed along tax savings to their customers. 

Entergy Arkansas: As noted in this February 28, 2018 Entergy Arkansas press release excerpt:

Customer bill credits will begin in April so customers will begin to benefit almost immediately and prior to summer when usage is typically higher.

Residential customers will see a savings of an estimated $20 per month for every 1000 kWh consumed from April 2018 to December 2019.

Business customers also will see significant bill reductions, allowing them to reinvest those savings into their business in 2018 as they deem appropriate.

Other effects of the TCJA are being considered in a docket opened by the APSC, and we expect those customer benefits to be reflected in future rate changes.

Center Point Energy: As noted in this August 28, 2018, Northwest Arkansas Democrat Gazette article excerpt:

CenterPoint Energy, the largest natural gas utility in the state with more than 400,000 customers, has proposed to reduce its rates by $19.2 million beginning in October.

CenterPoint filed the request with the Arkansas Public Service Commission on Friday in response to an order by the commission to reduce rates as a result of the federal tax law change passed in December. Congress passed the Tax Cuts and Jobs Act that reduced the corporate tax rate from 35 percent to 21 percent.

If the commission approves the lowered rate, Houston-based CenterPoint's rates would drop 9.5 percent on bills from October to January and 7.3 percent in January. For a customer with a bill of $100, it would fall to $90.50 under the first scenario and to $92.70 under the second scenario.

"Tax reform is a win for customers and reduced costs are being returned to them through various mechanisms or rate proceedings within each of our operating jurisdictions," said Alicia Dixon, CenterPoint's spokesman.

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

Arkansas 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. A typical residential customer will receive a monthly refund of about $4.64 per month ending in the middle of May 2019.

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Arkansas customers is $8.2 million.

Oklahoma Gas & Electric: As noted in this Oklahoma Gas & Electric press release

OG&E today announced that its average Arkansas residential customer will see approximately $113 in savings on upcoming electric bills.

In October, customers will see a credit of approximately $57 on their electric bill. Then, beginning in November, customers will see a credit of approximately $4 per month through the end of 2019. The savings are made possible by the reduction in corporate tax rates approved by Congress and signed by President Trump in December 2017.

“We’re pleased to pass on to our customers the benefits of tax savings that resulted from the Tax Cuts and Jobs Act,” said OG&E spokesman Brian Alford.

The credit will be noted on October bills as “Tax Cuts and Jobs Act Credit.”

Arkansas Oklahoma Gas: As noted in this October 9, 2018 Arkansas Public Service Commission document

The purpose of this rider is to provide customers with certain tax benefits associated with the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA reduces the maximum corporate income tax rate from 35% to 21% beginning January 1, 2018. TA flows back to customers the net impact of the lower corporate income tax rate that includes annual tax savings, as well as changes to Accumulated Deferred Income Tax (ADIT) amounts. An adjustment for WNA impact for January 2018 through April 2018 will be included in the 2018 TA Rates.

TA applies to all natural gas service provided under any rate schedule, including rates under Special Contracts, subject to the jurisdiction of the Arkansas Public Service Commission. 

Monthly credits shall appear as a line item on the bill titled, “Tax Cuts & Jobs Act Credit.” 

Beginning with the November 2018 billing month through the December 2018 billing month, all retail base rates will be decreased by the amounts listed in Attachment A. The rates include carrying charges, calculated using the pre-tax rate of return approved in the Company’s most recent rate case in Docket No. 13-078-U, for the over collection in tax expense from January 1, 2018 until the date this rider became effective.

Southwestern Power Electric Company: As noted in this February 5, 2020 Arkansas Public Service Commission document:

On January 31, 2020, Southwestern Electric Power Company (SWEPCO) filed with the Arkansas Public Service Commission (Commission) proposed revisions to Rate Schedule 49, Federal Tax Cut Adjustment Rider (FTCA Rider) and the Supplemental Direct Testimony and Exhibits of Shawnna G. Jones. 

Ms. Jones testifies that the total true-up amount due to Arkansas retail customers is an additional refund of $s,866,955 with carrying charges in the true up resulting in an additional refund of $321,726. She requests that the Commission approve Rider FTCA to be in effect for the March 2020 billing month that begins on February 28, 2020. Other than the true-up revisions to Rider FTCA, Ms. Jones testifies that SWEPCO proposes additional language to Rider FTCA that any residual amounts, after the refund is applied in March 2020, will be included in SWEPCO's next Energy Cost Recovery Rider filing with interest. Ms. Jones testifies that the bill impact to an average Residential customer using 934 kWh per month is a credit of $22.91 or a 23.28 percent decrease to total monthly bill. She states that SWEPCO will reflect the true-up as a separate line item on the customer bills labeled "Tax Cuts & Jobs Credit." Jones Supplemental Direct at 6-9.

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On the basis of the evidence currently before the Commission, namely, the testimony and exhibits filed herein by SWEPCO and Staff, the Commission approves SWEPCO's Rate Schedule No. 49 filed on January 31, 2020, as Supplemental Direct Exhibit SGJ-2, to become effective for bills rendered on or after February 28, 2020, and remain in effect until March 31, 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


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

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Posted by John Kartch, Michael Mirsky on Friday, September 3rd, 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, Mississippi 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 Mississippi 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 Mississippi Public Service Commission, Entergy Mississippi, Mississippi Power Co., CenterPoint Energy Mississippi and Atmos Energy Mississippi passed along tax savings to their customers.

Entergy Mississippi: As noted in this June 27, 2018 Entergy press release

Beginning July 1, Entergy Mississippi customers will see more than $300 million in benefits under a plan approved by the Mississippi Public Service Commission.

“The plan, a result of the Tax Cuts and Jobs Act, will let us reduce future rates and provide prompt credits that will lower bills during the high-usage summer months,” said Haley Fisackerly, Entergy Mississippi president and CEO. “It also lets us avoid a rate increase that would have resulted from nearly $1 billion in improvements we’ve made to strengthen and modernize the grid for our customers during the past three years.”

Under the plan, the typical residential customer bill for 1,000 kWh will drop more than $12 per month from July through September. Of that amount, $7.59 stems from tax reform. The remaining $5.05 is from an MPSC fuel order last January that was designed to reduce bills during the hot summer months. That portion will remain in effect through February 2019.

This means that the current typical residential customer bill for 1,000 kWh will drop from $114.01 to $101.37 from July through September, and from the current $114.01 to $109. 24 from October through February 2019.

Bills are a combination of rates and usage. Customers who use more electricity than 1,000 kWh per month will see larger savings, while customers who use less than that will see lower savings.

The Tax Cuts and Job Act reduced the corporate tax rate from 35 percent to 21 percent.

CenterPoint Energy Mississippi: As noted in this Mississippi Public Service Commission document

The purpose of this rider is to provide customers with certain tax benefits associated with the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA reduced the maximum corporate income tax rate from 35 percent to 21 percent beginning January 1, 2018. Rider TCJA returns to customers the estimated Unprotected Excess Accumulated Deferred Income Tax (“ADIT”) amounts not subject to the normalization provision of the Internal Revenue Code. 

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The Unprotected Excess ADIT will be amortized over three years and allocated to the customer classes based on the currently approved allocation factors per Rate Regulation Adjustment (“RRA”) Schedule 3.10. The allocated amounts by class shall be divided by the customer count billing determinants to calculate a monthly per bill credit. 

Monthly credits shall appear as a line item on the bill titled, “Tax reform refund”.

Atmos Energy Mississippi: As noted in this October 23, 2018 Mississippi Public Service Commission document:

In its review of the Company's filing, the Staff reviewed the Company's reduction to the Stable Rate revenue adjustment to reflect the amortization of excess deferred income taxes ("EDIT")related to the change to the federal corporate income tax rate in the 2017 Tax Cuts and Jobs Act ("TCJA"). The Staff and Company discussed the potential that the earnings band provision in the Stable Rate Rider could prevent customers from receiving the full benefit of the TCJA. Therefore, the Staff and the Company have agreed that it is consistent with the public interest to remove at this time the provision imposing an earnings band of 50 basis points above or below the Performance Based Benchmark Return and incorporate a provision providing a de minimis threshold such that the Annual Evaluation will not result in a change in revenues if the revenue deficiency/excess reflected in the filing is less than $250,000. The Staff and the Company further agree that this modification to the Stable Rate Rider shall be reviewed in the Company's next general rate case, which is currently scheduled to be filed no later than February of 2022 pursuant to the Commission's Order dated August 20, 2015, in Docket 2015-UN-49, for a determination by the Commission as to whether it is just and reasonable to adopt these changes permanently.

Mississippi Power Co.: As noted in this August 7, 2018 Clarion Ledger excerpt:

The increase is lower than the company originally sought, in part because of federal corporate tax cuts approved last year.

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


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

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Posted by John Kartch, Michael Mirsky on Friday, September 3rd, 2021, 11:35 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, Kentucky 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 Kentucky 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 The Kentucky Public Service Commission, Atmos Energy, Duke Energy Kentucky, Inc., Kentucky Power Co., Delta Natural Gas, Kentucky-American Water Co., Kentucky Utilities and Louisville Gas and Electric Company passed along tax savings to their customers.

Duke Energy Kentucky, Inc.: As noted in this March 5, 2019 Duke Energy news release

Duke Energy customers will see $110.7 million in energy bill savings as a result of the Tax Cuts and Jobs Act of 2017, the company reports.

That money is spread between Duke’s Ohio and Kentucky customers. Electric customers will benefit most from this, with Ohio customers gaining $46 million and Kentucky customers $16.5 million in annual savings. Where natural gas is concerned, Ohio and Kentucky customers will each gain $3 million in savings, though another $37 million is under consideration in Ohio and another $5.2 million is under review by regulators in Kentucky.

In a single year, Duke said that this could gain individual households up to $70 for natural gas and $40 for electric in Ohio, while Kentucky customers could see up to $51 for natural gas annually and $55 for electric.

Kentucky Power Co.: As noted in this June 28, 2018 The Lane Report excerpt:

In a pair of orders issued today, the PSC approved changes that will have the net effect of reducing an average monthly residential bill by $5.90 for the remainder of 2018. The rates approved today take effect July 1 and will remain in place at least through 2020; Kentucky Power has agreed not to seek an adjustment to base rates to take effect prior to January 2021.

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The January base rate order addressed the immediate impact of the corporate income tax reduction – a cut from 35 percent to 21 percent – that took effect at the start of this year. The remaining portion, most of it tied to deferred federal tax liabilities, was dealt with through a complaint filed by the Kentucky Industrial Utility Customers, Inc. (KIUC), an organization representing large industrial power users.

Atmos Energy: As noted in this May 4, 2018 The Lane Report excerpt

The Kentucky Public Service Commission (PSC) has reduced the annual revenue of Atmos Energy, thereby lowering the average monthly bill for residential customers.

In an order issued today, the PSC reset rates that were established on an interim basis in March to reflect reduced federal corporate income tax rates that took effect at the first of the year.

The reduction in the monthly residential bill includes a reduction to zero of a $2.97 surcharge assessed to pay for an accelerated program to replace aging and potentially hazardous pipes in the Atmos distribution system. That surcharge was in addition to the interim $16.52 base monthly service charge.

The base monthly service charge will return to $17.50, which is the amount it was prior to the interim rates taking effect. The delivery charge for gas will rise from the interim $1.45 per 1,000 cubic feet to $1.73 per 1,000 cubic feet. A typical Atmos residential customer uses an average of 5,300 cubic feet per month.

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Atmos filed a rate increase request in September 2017, seeking an additional $10.4 million in annual revenue from gas distribution operations, an increase of about 6.1 percent. Following the passage of federal corporate income tax reductions, Atmos revised the requested increase to about $1.76 million.

Delta Natural Gas: As noted in this September 21, 2018 WYMT Mountain News excerpt

The Kentucky Public Service Commission (PSC) ordered Delta to give its customers monthly credit to reflect reduced federal corporate income tax rates.

The credit will come in two phases. In the first phase, the average residential customer using 5,000 cubic feet a month will get a monthly credit of $9.59. The PSC says this is a decrease of about 21 percent of the base rate costs. This first phase begins in October 2018 and ends in March 2019.

The second phase of monthly credit begins in April 2019. The average residential customer will then get a monthly credit of $3.84, about 8.5 percent of the base rate costs. This phase will continue until the next rate adjustment or federal tax laws change.

Kentucky-American Water Co.: As noted in this August 30, 2018 Kentucky Public Service Commission document

On August 20, 2018, Kentucky-American filed a revised schedule of rates reflecting the amounts recorded as a deferred liability for the lower tax expense under the TCJA for the period of January 1, 2018, through July 31 , 2018, and an estimated August 2018 reserve. Kentucky-American proposes that the reduction in its revenue requirements attributable to the lower tax expense under the TCJA be returned to customers via a reduction in rates. The proposed rate reduction is based upon only the FIT rate reduction , while the rate impact of the TCJA on Kentucky-American's ADIT will continue to accrue as a deferred liability and will be addressed later in this proceeding, or in Kentucky-American's next base rate case. The proposed rate reduction returns to customers over the next ten months the deferred FIT liability for the eight months of January through August 2018, along with an additional ten months' worth of annual FIT savings over that same period based on authorized revenues from the last rate case.

Kentucky Utilities: As noted in this March 20, 2018 Kentucky Public Service Commission document

The TCJA Surcredit will be applied for services rendered on and after April 1, 2018, through April 30, 2019. The parties do not anticipate the TCJA Surcredit continuing after that date because KU/LG&E plan to file for a change in their base rates - which will take into account the changes from the Tax Cut and Jobs Act, among other potential factors - effective May 1, 2019, either as approved by the Commission or placed in effect by KU/LG&E subject to refund based on the Commission's final orders in the anticipated rate cases. 

KU/LG&E estimate the benefits of the Offer and Acceptance of Satisfaction for services rendered on and after April 1, 2018, through April 30, 2019, as follows: 

Bill reductions to KU customers in the amount of $91,290,656, with $70, 180,255 taking the form of the TCJA Surcredit for an estimated 4.2 percent reduction to the monthly bill for the average KU residential customer.

Louisville Gas and Electric Company: As noted in this March 20, 2018 Kentucky Public Service Commission document

The TCJA Surcredit will be applied for services rendered on and after April 1, 2018, through April 30, 2019. The parties do not anticipate the TCJA Surcredit continuing after that date because KU/LG&E plan to file for a change in their base rates - which will take into account the changes from the Tax Cut and Jobs Act, among other potential factors - effective May 1, 2019, either as approved by the Commission or placed in effect by KU/LG&E subject to refund based on the Commission's final orders in the anticipated rate cases. 

KU/LG&E estimate the benefits of the Offer and Acceptance of Satisfaction for services rendered on and after April 1, 2018, through April 30, 2019, as follows: 

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Bill reductions to LG&E electric customers in the amount of $68,934,450, with $48,993,021 taking the form of the TCJA Surcredit for an estimated 4.3 percent reduction to the monthly bill for the average LG&E electric residential customer. 

Bill reductions to LG&E's gas customers $16,663,609, with $16,229,321 taking the form of the TCJA Surcredit for an estimated 3 percent reduction to the monthly bill for the average LG&E gas residential customer.

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


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

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Posted by John Kartch, Michael Mirsky on Thursday, September 2nd, 2021, 7:00 PM PERMALINK

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

If President Biden and Sens. Tina Smith and Amy Klobuchar hike the corporate income tax rate, Minnesota 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 Minnesota 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 Minnesota Public Utilities Commission, CenterPoint Energy, Minnesota Power, Minnesota Energy and Xcel Energy passed along tax savings to their customers.

CenterPoint Energy: As noted in an August 9, 2018 Minnesota Public Utilities Commission statement:

The Minnesota Public Utilities Commission (Commission) ordered Minnesota’s investor-owned utilities to return approximately $200 million in annual benefits reflecting lower corporate tax rates resulting from the federal 2017 Tax Cut and Jobs Act.

This $200 million in annual benefits includes the decisions made today in this current proceeding relating to accounting and taxes; the recent decisions made for CenterPoint Energy (approximately $21.3 million) and Minnesota Power (approximately $18.7 million) in their general rate cases; and a pending decision regarding Minnesota Energy Resources Corporation (currently estimated to be approximately $5.2 million) in its general rate case, which is scheduled to be taken up by the Commission in November of this year.

With respect to each regulated utility, the Commission acted to ensure that each utility’s rates reflect the new, lower federal income tax rates in the cost of providing service.

Minnesota Power: As noted in an August 9, 2018 Minnesota Public Utilities Commission statement:

The Minnesota Public Utilities Commission (Commission) ordered Minnesota’s investor-owned utilities to return approximately $200 million in annual benefits reflecting lower corporate tax rates resulting from the federal 2017 Tax Cut and Jobs Act.

This $200 million in annual benefits includes the decisions made today in this current proceeding relating to accounting and taxes; the recent decisions made for CenterPoint Energy (approximately $21.3 million) and Minnesota Power (approximately $18.7 million) in their general rate cases; and a pending decision regarding Minnesota Energy Resources Corporation (currently estimated to be approximately $5.2 million) in its general rate case, which is scheduled to be taken up by the Commission in November of this year.

With respect to each regulated utility, the Commission acted to ensure that each utility’s rates reflect the new, lower federal income tax rates in the cost of providing service.

Minnesota Energy: As noted in an August 9, 2018 Minnesota Public Utilities Commission statement:

The Minnesota Public Utilities Commission (Commission) ordered Minnesota’s investor-owned utilities to return approximately $200 million in annual benefits reflecting lower corporate tax rates resulting from the federal 2017 Tax Cut and Jobs Act.

This $200 million in annual benefits includes the decisions made today in this current proceeding relating to accounting and taxes; the recent decisions made for CenterPoint Energy (approximately $21.3 million) and Minnesota Power (approximately $18.7 million) in their general rate cases; and a pending decision regarding Minnesota Energy Resources Corporation (currently estimated to be approximately $5.2 million) in its general rate case, which is scheduled to be taken up by the Commission in November of this year.

With respect to each regulated utility, the Commission acted to ensure that each utility’s rates reflect the new, lower federal income tax rates in the cost of providing service.

Xcel Energy: As noted in this August 11, 2018 Minneapolis Star Tribune article:

Xcel Energy’s $136 million windfall from last year’s federal tax act will be passed directly to its Minnesota customers through refunds, state utility regulators ruled Thursday.

Customers of Minnesota’s other investor-owned utilities will also receive refunds — or smaller rate increases — due to the 2017 tax law, which slashed the U.S. corporate income tax rate from 35 percent to 21 percent.

Xcel’s average residential electricity customer — someone who pays $85 to $90 per month — will get a refund of about $45 as a one-time bill credit. The company’s average residential gas customer — who pays around $48 a month — will get a one-time bill credit of about $8. Xcel said it expects the refunds will be made by year’s end.

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


Vermont 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 2nd, 2021, 2:24 PM PERMALINK

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

If President Biden and Sens. Bernie Sanders and Patrick Leahy hike the corporate income tax rate, Vermont 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 Vermont 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 State of Vermont Public Utility Commission, Green Mountain Power and Vermont Gas Systems, Inc. passed along tax savings to their customers.

Vermont Gas Systems, Inc.: As noted in this February 15, 2018 State of Vermont Public Utility Commission document

The Company’s rate filing reduces overall rates by 3.8%. This change is the result of a 4% increase in the daily access and distribution charges (collectively referred to as “base rates”), use of $8.1 million from the System Expansion and Reliability Fund (“SERF” or the “Fund”), and a decrease in the natural gas charge of 14.8%. This filing also incorporates significant savings to customers resulting from the recent reduction in the federal income tax rate. For rates that are currently in effect, customers are receiving direct bill credits as proposed by VGS, supported by the Department of Public Service (“Department”) and approved by the PUC on January 24, 2018. This rate filing incorporates these permanent tax cuts into rates for the 2019 rate year and beyond so that customers will continue to receive the full benefit of the tax change.

Green Mountain Power: As noted in this August 30, 2018 S&P Global excerpt

The Vermont Public Utility Commission has adjusted base rates for Green Mountain Power Corp. to cover projected costs by effectively approving a nearly 2.7% increase for the fiscal year 2020 that will go into effect Oct. 1.

In an Aug. 29 decision (Docket No. 19-1932), Vermont regulators approved a 2.67% base rate hike for GMP, as recommended by the state Department of Public Service who recalculated the utility's rate need based on proposed reductions. Énergir LP subsidiary GMP had originally asked for a higher 2.92% increase. The utility still needs to modify the rates to meet proposed reductions recommended by the DPS.

The 2.67% rate hike will be on top of a 5.43% rate increase that officially went into effect at the start of 2019 but whose impact has been mitigated so far as a result of a windfall in federal tax cuts being passed along to ratepayers in the form of credits. With the tax credits expiring at the start of October, the full weight of the 5.43% rate increase will now be borne by customers. Line items related to the emerald ash borer infestation and major storm recovery costs are also going into effect.

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


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

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Posted by John Kartch, Michael Mirsky on Thursday, September 2nd, 2021, 11:25 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, Kansas 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 Kansas 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 Kansas Corporation Commission, Kansas City Power and Light, WeStar Energy, Kansas Gas, and Black Hills Energy passed along tax savings to customers.

Kansas City Power and Light: As noted in this Jan. 18, 2018 Kansas City Power and Light press release:

Updated rates will include an approximate $100 million benefit to Kansas and Missouri Customers

Today KCP&L announced its intention to file rate update cases with the Kansas Corporation Commission (KCC) and the Missouri Public Service Commission (MPSC) to pass approximately $100 million in annual tax savings to customers, resulting from federal tax cost reductions. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018. KCP&L is committed to passing 100 percent of the benefit from this tax cut on to customers.

"We commend both the KCC and the MPSC for already initiating a process to review the impact of the federal tax reduction," said Terry Bassham, President and CEO of KCP&L. "The federal tax cut has significant benefits which should be passed on to our customers in full. We look forward to working with our regulators and stakeholders on the best way to do that."

WeStar Energy: As noted in this Jan. 18, 2018 WeStar Energy press release:

Today Westar Energy announced it will file a request before the Kansas Corporation Commission (KCC) to reflect in its electricity rates the full amount of tax savings from the change in the federal tax law. Westar said that a detailed application is being prepared and will be filed later this month or early February. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017, and became effective Jan. 1, 2018. 

“We agree with the KCC Staff and others that all these tax benefits should go to our customers,” said Mark Ruelle, President and CEO of Westar. “This application to update rates starts that process.”

All utility rate changes must be approved by the KCC. That process typically takes a few months to review and confirm. While the company estimated the tax benefit to be $65 million annually, or more, the KCC Staff and other parties will confirm the precise figures before the KCC.  In addition to passing through the benefit of lower tax rates, regulators will review and update all other costs to provide electricity.”

Kansas Gas: As noted in this February 25, 2019 KWCH 12 News excerpt:

The Kansas Corporation Commission Monday issued an order instructing Kansas Gas Service to return about $16.6 million in tax savings to its customers.

The KCC says this means residential customers can expect a one-time bill credit of $21.06. The KCC says the savings resulted from the Federal Tax Cuts and Jobs Act reducing the corporate tax rate from 35 percent to 21 percent in January 2018.

Black Hills Energy: As noted in this January 14, 2019 Wichita Eagle excerpt:

About 37,000 customers in the Wichita area are getting a cut in natural gas bills starting this month to pass along federal tax reductions approved about a year ago.

Black Hills Energy customers in Wichita will see about a $7.30 reduction in their January gas bill and about a dollar a month in the future.

In total, the company is passing through about $1.7 million in annual savings to its customers, according to a statement issued Friday.

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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