Utility Energy Savings State By State - Tax Cuts And Jobs Act

Written by TaxConnections Admin | Posted in Energy Tax Credits • Tax Credits - Federal

One of the biggest benefits of the Tax Cuts and Jobs Act is the savings to customers of utility companies. According to research conducted by Americans for Tax Reform these are the rate savings for utilities this year. This is a great reminder we have savings to be thankful for this year.

Arizona Public Service (Phoenix, Arizona)

The utility requested a $119 million bill reduction for customers due to tax reform. APS has requested the Arizona Corporation Commission approve a $119 million bill reduction for customers, based on federal corporate tax cuts, effective February 1, 2018.

If approved, the $119 million decrease will offset the $95 million revenue increase that resulted from APS’s last rate review. The savings of $0.004258/kWh will be passed directly to customers through the Tax Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was included in the company’s rate review, and customer savings will vary with actual energy usage. APS customers would receive the credit on their monthly bill. – Jan. 9, 2018 Arizona Public Service press release

Appalachian Power Company (Milton, West Virginia)

Appalachian Power Company saved $235 million dollars from the federal tax cuts and the company is proposing passing the money back to its customers in a variety of ways. – May 30, 2018, MetroNews article excerpt

Atlantic City Electric (Atlantic City, New Jersey)

The utility will pass along tax cut savings to customers: Atlantic City Electric will provide $23 million in annual tax savings to its customers. The company made a filing this month with the New Jersey Board of Public Utilities, which was approved on March 26, 2018. Customers will begin to see reductions on their bills around April 1, 2018. – April 3, 2018, Exelon Utilities press release

Alabama Power (Birmingham, Alabama)

The utility is passing along tax savings to customers. Alabama Power Company customers will see a reduction in their bills because of the federal income tax cut approved by Congress last year, the Public Service Commission announced at its monthly meeting today. The reduction in 2018 will be for $257 million, about a 9 percent cut, the PSC said. The cut requires no action by the PSC, which regulates Alabama Power. The reduction takes effect in July and continues through December.

“This is a great day for Alabama consumers and taxpayers,” Commission President Twinkle Andress Cavanaugh said. The commission approved two requests from Alabama Power related to the income tax cut. One would allow the company to apply up to $30 million of excess federal deferred income taxes this year to Energy Cost Recovery, a factor in rate-setting. The other request from Alabama Power was to make several changes to the PSC’s method of setting rates, called Rate Stabilization and Equalization, or RSE. The PSC said the changes would enable Alabama Power “to mitigate the credit quality impacts” resulting from the Tax Cuts and Jobs Act and preserve rate stability for customers. The changes would allow Alabama Power to increase the equity share of its capital investment, the PSC said.

In conjunction with that second request, Alabama Power committed to no increases in its base rates through 2020 and to credit customers $50 million next year, the PSC said. – May 1, 2018 AL.com article

Alagasco (Spire Inc.) (Birmingham, Alabama) The utility will pass tax cut savings on to customers. Spire is giving relief to its Alabama customers in the form of rate decreases as a result of the utility being a beneficiary of the Trump tax plan. Spire, formerly known as Alagasco, is among the companies giving back either to customers or employees due to receiving a tax cut. – February 2, 2018, AL.com article

Alaska Electric Light and Power (Juneau, Alaska)

More than 100,000 Alaskans could be in for a break on their bills by next winter as privately-held utility companies catch the windfall from a federal corporate tax cut. In December, Congress passed new tax law that included a major cut to the corporate tax rate — to 21 percent from 35 percent. That will likely mean major savings for the small number of Alaska utilities that aren’t cooperatives or municipally owned. – March 7, Anchorage Daily News

Alliant Energy (Madison, Wisconsin)

The utility will pass along tax cut savings of 140M to customers. 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. – May 26, 2018 Wisconsin State Journal article

Alpena Power Company (Alpena, Michigan)

The utility will pass along tax cut savings to customers. The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).

“Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes,” said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission press release

Ameren Illinois (Chicago, Illinois)

“Under the new tax plan, Ameren Illinois’ effective tax rate will decrease by nearly 13%,” said Richard Mark, chairman and president, Ameren Illinois. “The plan we have filed with the ICC gives us the ability to expedite the return of these savings to our customers.”

Ameren Missouri (St. Louis, Missouri)

The utility will pass cut savings to customers. 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. – July 6, 2018 KTTN article

Appalachian Natural Gas (Abingdon, Virginia)

The utility will pass along tax reform savings to customers. Appalachian Power Company saved $235 million dollars from the federal tax cuts and the company is proposing passing the money back to its customers in a variety of ways.The multi-pronged proposal is in a filing with the state Public Service Commission due Wednesday. The PSC is requiring all utilities to tell it their tax cut savings and what they plan to do with it. West Virginia Consumer Advocate Jackie Roberts told MetroNews the money clearly belongs to the customers. “They (the utilities) had taxes in their rates and now the taxes in their rates have significantly decreased—so they shouldn’t be able to keep collecting and keeping those higher taxes in their rates,” Roberts said.

Appalachian Power Company Communications Director Jeri Matheney agrees–the $235 million Appalachian Power will save belongs to its customers. “It is customer money. What we propose to do is provide a method to keep rates as stable as possible over the long term and as much as possible eliminate the need for rate increases,” Matheney said.The Appalachian Power distribution proposal for West Virginia customers includes:–$131 million to completely offset the company’s fuel and vegetation control program funding request that was part of an April filing with the PSC–$19 million reduction in the company’s base rate case filed earlier this month (taking the $115 million request down to $96 million)–$51 million to reduce next year’s fuel recovery cost rate case–$1 million for a pilot economic development grant program–$30.1 million to return to customers over the next three years – May 30, 2018 MetroNews article

Aqua Virginia, Inc (Rockville, Virginia)

The utility will pass tax cut savings on to customers. The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.

The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. -January 8, 2018, Virginia SCC press releases

Arizona Public Service (Phoenix, Arizona)

Atlanta Gas Light Company (Atlanta, Georgia)

The utility will pass along tax cut savings to customers. Atlanta Gas Light Co. received approval from the Georgia Public Service Commission for a stipulation that allows for $82 million in customer benefits as a result of the federal tax reform law. – May 16, 2018, SNL Daily Gas Report

Atlantic City Electric (Atlanta, Georgia)

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

Atmos Energy (Owensboro, Kentucky)

The utility will pass along tax cut savings to customers. “Atmos Energy, which serves western Kentucky, announced in March that it will be cutting the average residential bill by just over 3 percent. Other savings from tax reform will fund infrastructure upgrades across the Commonwealth. Companies in Kentucky have been able to expand their operation because of the Tax Cuts and Jobs Act.” – May 8, 2018 Rep Brett Guthrie statement on House floor

Avangrid (Orange, Connecticut)

The utility is passing savings from tax reform to customers. AVANGRID, Inc., a diversified U.S. energy company, today issued the following statement regarding the impact of the 2017 tax reform act. AVANGRID’s regulated natural gas and electricity companies will pass along to customers the full benefit of any tax savings that the companies realize as a result of the 2017 federal tax reform act. Among other changes, the tax reform act reduces the federal corporate tax rate from 35 to 21 percent. As a matter of fairness, AVANGRID believes that any resulting tax savings should be extended to customers.

Avista Corporation (Spokane, Washington)

The utility will pass federal tax reform savings to customers. Avista customers could collectively see a $50 million to $60 million annual benefit from federal tax reform, utility officials said Wednesday.The savings on individual customers’ bills, however, won’t be known until later this year. Corporate tax rates for the Spokane-based utility dropped from 35 percent to 21 percent effective Jan. 1. Savings from the lower taxes will get passed on to Avista’s utility customers in Washington, Idaho and Oregon, said Mark Thies, senior vice president and chief financial officer.

The anticipated $50 million to $60 million in annual savings is the result of the lower federal tax rate and changes to Avista’s deferred tax liability related to depreciation costs. As the result of the depreciation changes, about $442 million will be returned to Avista customers over 35 years, Thies said. – February 21, 2018 The Spokesman

Baltimore Gas & Electric (Baltimore, Maryland)

The utility is passing on $82 million worth of tax savings, resulting in lower gas and electric bills for customers. Today BGE will file with the Maryland Public Service Commission (PSC) to pass approximately $82 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. If approved by the PSC, the average BGE residential electric customer can expect to see an estimated $2.31 decrease on their monthly bill, and the average residential combined natural gas and electric customer can expect an estimated $4.27 monthly reduction, effective in February 2018.

“Reduced tax costs create an opportunity for BGE customers to benefit from further decreases in their total energy bills,” said Calvin G. Butler Jr, chief executive officer of BGE.

Bermuda Water Company (Phoenix, Arizona)

The utility will pass tax savings on to customers. The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers

August 24, 2018 Prescott News Online.

Black Hills Energy (Rapid City, South Dakota)

The utility will pass along tax savings to customers. “Black Hills Energy is currently reviewing the recently approved Tax Cuts and Jobs Act of 2017,” spokeswoman Brandy Johnson said in an email. “We will work with utility regulators to develop a plan to provide customers the benefit of the corporate tax rate reduction.”

California Water Service (San Jose, California)

The utility will pass along tax cut savings to customers. 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. May 30, 2018 Globe News Wire

Center Point Energy (Houston, Texas)

The utility is passing on tax savings to customers. 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, Center Point’s spokesman.

Central Maine Power Company (Augusta, Maine)

The utility will pass along tax cut savings to customers. 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 – State of Central Maine PUC Company Annual Filing

Chattanooga Gas Company (Chattanooga, Tennessee)

The utility will pass along tax cut savings to customers. 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”). – February 6, 2018 Tennessee PUC Report

Citizens Electric Company of Lewisburg (Lewisburg, Pennsylvania)

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

Additionally, the PUC will consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018. In those situations, the Commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility. – May 17, 2018 Pennsylvania PUC Commission press release

Cleco Corporation (Pineville, Louisiana)

The utility will pass tax savings to customers. Cleco confirmed it will pass along savings to customers related to the recent tax reform. The Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018, decreased the federal corporate tax rate from 35 percent to 21 percent, reducing the amount of federal income tax Cleco will have to pay.

“In an effort to promptly provide our customers with the benefits of the federal tax reduction, Cleco will deliver a plan to the LPSC outlining customer savings,” said Taylor. “We have anticipated these savings and are prepared to pass them along to our customers at the direction of the LPSC.” February 22, 2018 Cleco Corporation press release

College Utilities (Fairbanks, Alaska)

The utility will pass tax cut savings along to customers. In December, Congress passed new tax law that included a major cut to the corporate tax rate — to 21 percent from 35 percent. That will likely mean major savings for the small number of Alaska utilities that aren’t cooperatives or municipally owned. Those utilities include Enstar Natural Gas, which serves Anchorage, the Kenai Peninsula and Mat-Su; Alaska Electric Light and Power (AEL&P) in Juneau; and Golden Heart Utilities and College Utilities, water and sewer utilities in Fairbanks.-March 7, 2018 Anchorage Daily News

Columbia Gas of Virginia (Chester, Virginia)

Commonwealth Edison “Com Ed” (Chicago, Illinois)

To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.

The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. – April 25, 2018 The Chicago Citizen press release

Consumers Energy (Jackson, Michigan)

The utility will pass along tax savings to customers. Consumers Energy today issued the following statement from President & CEO Patti Poppe: ‘Today, Consumers Energy was pleased to submit a proposal to the Michigan Public Service Commission that would lower customer bills starting in 2018 by approximately $200 million, as a result of the recent federal tax reform changes. We are thrilled to be able to pass along 100 percent of the savings from tax reform to the people we are privileged to serve. This underscores our commitment to people, planet and prosperity for all of Michigan.” – January 19, 2018 Consumers Energy press release

Delmarva Power (Newark, New Jersey)

The utility will pass along tax reform savings to customers. Tax cuts passed by Congress in December have effectively caused Delmarva Power to reduce its power rate increase request in Delaware by $26 million, the company announced on Friday. – February 9, 2018 Delaware Online

Dominion Energy “SCE&G” (Cayce, South Carolina)

Dominion Energy (Utah)

The utility will lower rates for customers because of tax reform. As a result of federal tax cuts, Dominion Energy is passing on $17 million in savings to its consumers. The Utah Division of Public Utilities announced that the energy company filed January 31, 2018, for the multi-millions in adjustments that enables customers to get a break on their gas bills.

According to the Division of Public Utilities, Utah utility customers will begin seeing savings from federal tax reform over the next few months.A press release stated that the first wave of cuts should take effect in the next 30 days, providing $2.5 million in savings on infrastructure.

“Ever since federal tax reform legislation was passed, our Division of Public Utilities has been working closely with the Public Service Commission and utilities to determine the best method to pass on tax savings to Utah customers. Consumers should begin seeing lower gas bills soon and our Division will continue to ensure other tax cuts reach customer bills as quickly as possible,” stated Chris Parker, Division Director, in a press release.

Additional reductions will follow Dominion Energy’s gas cost filing later this spring. The Division is working with other agencies to immediately reduce base rates to customers by $14.5 million more, the press release stated. February 5, 2018 KUTV CBS Salt Lake City Article

DTE Energy (Detroit, Michigan)

The utility will pass along tax savings to customers. DTE Energy issued the following statement regarding the impacts of H.R.1, the Tax and Jobs Act. “The recent passage of the Federal Tax Cuts and Jobs Act will offer benefits to energy customers across the country – including DTE’s utility customers here in Michigan. The reduction of the corporate tax rate will result in lower bills for DTE’s 2.2 million electric and 1.3 million gas customers. In 2018, a savings of nearly $190 million will be passed along to customers. As this tax reduction works through the regulatory process, our average electric and gas customers will see a reduction in their rates of about 3 percent. The reduction in rates due to the tax law change will be a significant infusion into the Michigan economy as our customers will enjoy this benefit for years to come.” – January 23, 2018 DTE Energy press release

Duke Energy Carolinas And Duke Energy Progress (Charlotte, North Carolina)

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

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

“This is a unique opportunity that allows us to reduce customer bills in the short term while also helping to offset future rate increases,” said David Fountain, Duke Energy’s North Carolina president. “With a balanced approach, our customers can benefit from a reduction in the corporate income tax rate, while we continue to make smart investments on behalf of our customers.” February 1, 2018 Duke Energy press release

Duke Energy Florida (St. Petersburg, Florida)

The utility will pass along tax savings to customers. Duke Energy Florida today announced that customers will directly benefit from the new federal tax law and avoid a rate increase for power restoration costs associated with the company’s response to last September’s Hurricane Irma.

Instead of increasing customer rates, the company plans to apply federal tax reform savings toward those storm costs. On Dec. 28, 2017, the company had filed for recovery of $513 million – $381 million for power restoration costs and $132 million to replenish the storm reserve fund. Residential customers would have seen an increase of $5.20 per 1,000 kWh of electricity on a typical monthly bill over a three-year recovery period – an average of $187.20. Commercial and industrial customers were expected to see an increase of approximately 2.5 to 6.6 percent, though bills would have varied depending on a number of factors. Like many companies, Duke Energy has been working to analyze the benefits of tax reform. “We are pleased that this solution will prevent a rate increase for our customers,” said Harry Sideris, Duke Energy Florida state president. –January 24, 2018 Duke Energy Florida press release

Duke Energy Indiana (Plainfield, Indiana)

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

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

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

Duke Energy says it began reflecting the lower federal tax rate in customers’ bills earlier this year. The settlement, which included the Indiana Industrial Group and Nucor Steel, also proposes reducing base rates in September to reflect the lower tax rate. It also includes refunds of accumulated deferred taxes in 2018 and 2020. –June 28, 2018 Inside Indiana article

Duke Energy Kentucky (Cincinnati, Ohio)

The utility will pass along tax reform savings to customers. 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.” – April 13, 2018 Duke Energy press release

El Paso Electric (El Paso, Texas)

The utility will give refunds to customers due to tax reform. El Paso Electric (EPE) was one of the first utilities in the state of Texas to address and identify a mechanism to refund Texas customers due to the reduction in the federal income tax rate.

On December 14, 2017, the unopposed settlement approved by the Public Utility Commission of Texas (PUCT) included a provision to refund EPE’s Texas customers for the reduction in the federal income tax rate.

EPE is currently calculating the changes and impacts of the new tax law to determine the amount of the refund to be filed in mid-April. EPE expects Texas customers will begin to see the refund as a credit on their bills by mid-year 2018 following PUCT approval of its refund filing. – January 23, 2018 El Paso Electric Company press release

Enstar Natural Gas Company (Anchorage, Alaska)

The utility will pass tax reform savings to customers.

Entergy Arkansas (Little Rock, Arkansas)

The utility will pass tax reform savings to customers. If approved by the APSC, the multi-million dollars in tax savings will benefit customers in the following ways:

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

-February 28, 2018 Entergy Arkansas press release

Entergy Louisiana (Baton Rouge, Louisiana)

The utility will pass along tax reform savings to customer. 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.” -April 18, 2018 Entergy Louisiana press release

Entergy Mississippi (Jackson, Mississippi)

The utility will pass tax reform savings to customers. If approved by the MPSC, the multi-million dollars in tax savings will benefit customers in three ways: short-term bill credits, long-term rate reductions and alleviation of some future rate increases.

These are projected to begin this summer, when usage and bills are typically at their highest. Based on its plan, Entergy Mississippi expects residential customer bills to drop more than $30 per month during July, August and September, from a combination of lower-rates and short-term bill credits.

Without the tax reform, which reduced the corporate tax from 35 percent to 21 percent, substantial projects undertaken by Entergy to strengthen and modernize the grid would have required significant rate increases.

“We intend to ensure that our customers receive timely benefits from the new tax reforms, said Haley Fisackerly, Entergy Mississippi president and CEO. “The tax reduction will allow us to reduce rates, provide substantial bill credits and lower our customers’ bills during the high-usage summer months.” February 26, 2018 Entergy Mississippi press release

Entergy New Orleans (New Orleans, Louisiana)

The utility will pass along tax reform savings to customers. 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.” -April 11, 2018 Entergy New Orleans press release

Entergy Texas (The Woodlands, Texas)

The utility will pass along tax reform savings to customers. “Entergy Texas is also passing substantial savings from federal tax reform directly to customers. These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more reliable and affordable energy to customers.

Following the passage of the Tax Cuts and Jobs Act, the federal corporate tax rate was lowered, and Entergy Texas will flow back more than $200 million to customers over the next two years. This sum represents funds that Entergy Texas had collected from customers according to IRS rules to pay future taxes at the higher tax rate that is no longer in effect. Additionally, Entergy Texas’ new rates will reflect the lower tax rate going forward.”- May 15, 2018 Entergy Texas press release

Epcor USA (Phoenix, Arizona)

The utility will pass along tax reform savings to customers. ”Entergy Texas is also passing substantial savings from federal tax reform directly to customers. These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more reliable and affordable energy to customers.

Eversource Energy (Boston, Massachusetts)

The utility will pass along tax savings to customers. The newly passed federal tax law reduces the amount of taxes Eversource will be paying by millions of dollars and today the energy company has informed the Department of Public Utilities of its decision to voluntarily pass those savings along to customers.

“We believe it’s important that our customers reap the benefit of a lower tax rate,” said Eversource Massachusetts Electric Operations President Craig Hallstrom. “As a regulated power company our rates are based on our costs, including federal taxes, so if taxes are reduced ultimately costs are reduced and that benefits our customers.”

For example, customers in the company’s Eastern Massachusetts service territory will see a reduction in taxes of $47.6 million. This will cause a rate reduction of approximately $35.4 million, rather than the approved increase of $12.2 million (per the rate case decision Nov 30th). For Western Massachusetts, customers will benefit from a reduction in taxes of $8.3 million, reducing the approved increase of approximately $24.8 million to $16.5 million –January 4, 2018 Eversource Energy press release

Georgia Power (Atlanta, Georgia)

“Today’s announcement marks the second substantial, positive impact for Georgia Power customers tied to the new tax laws. In January, Georgia Power announced that customers would pay $139 million less than expected in 2018 for the Vogtle nuclear expansion currently under construction due to changes in federal tax laws and full receipt of the Toshiba parent guarantee payments. Beginning in April, the typical residential customer using 1,000 kilowatt-hours per month will pay $2.70 less than expected per month in financing costs for the Vogtle project. Additionally, Georgia Power bill credits totaling $188 million were approved by the Georgia PSC as part of its order to continue construction of Vogtle 3 & 4 as a direct result of the Toshiba parent guarantee payments for the Vogtle project. The credits, amounting to $75 per individual customer, will be distributed across three separate Georgia Power bills in 2018, with the first $25 credit appearing in the coming months.” – March 6, 2018 Georgia Power Company article

Golden Heart Utilities (Fairbanks, Alaska)

Those utilities include Enstar Natural Gas, which serves Anchorage, the Kenai Peninsula and Mat-Su; Alaska Electric Light and Power (AEL&P) in Juneau; and Golden Heart Utilities and College Utilities, water and sewer utilities in Fairbanks. – March 7, 2018 Anchorage Daily News

Granite State Electric “Liberty Utilities” (Salem, New Hampshire)

The utility will pass along tax cuts savings to customers. In this order, the Commission approves a distribution revenue decrease for Liberty Utilities, passing on to ratepayers the benefits of reduced corporate taxes resulting from recent changes to state and federal tax laws. This order also approves Liberty’s proposal to forego other distribution rate increases that were scheduled to take effect June 1, 2018, as a way to pass additional benefits of corporate tax reductions on to customers – May 31, New Hampshire PUC

Green Mountain Power (Colchester, Vermont)

The utility will pass along tax savings to customers. In a filing with the Vermont Public Utility Commission, Green Mountain Power is seeking to lower bills for customers by $6 million. The benefit comes from federal tax law changes that reduce GMP’s corporate tax rate from 35 percent to 21 percent. This change will be retroactive and take effect January 1, 2018 at the start of GMP’s new rate year. The reduction will be applied starting in the February bill cycle and will be returned monthly throughout 2018 as a bill credit.

“After the federal tax plan passed, GMP pledged to return 100% of the tax benefit to customers, and today’s letter sets in motion our plan to reduce rates to provide those savings to our customers immediately,” said President and CEO Mary Powell. “Keeping energy costs low and stable is a key focus at GMP and this decrease will help offset increased cost pressures in other areas outside of our control such as regional transmission costs.”

This rate reduction will help offset the recent rate increase that took effect in January. GMP customers will continue to see the benefits of the new, lower tax rate for as long as these rates are in effect because they will be reflected in future proposed energy rates. GMP is set to file its next rate case in April. –January 23, 2018 Green Mountain Power press

Gulf Power Company (Pensacola, Florida)

The utility will pass tax reform savings to customers. Gulf Power has filed a request with the Florida Public Service Commission seeking approval to pass along approximately $103 million in tax savings to its 460,000 customers.

If approved, the average Gulf Power customer using 1,112 kilowatt hours per month would see a $14 drop on their monthly electricity bill for 2018 — the largest decrease in company history. More than $30 million in savings for customers will continue into 2019 and beyond if approved by the FPSC.

The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, and became effective Jan. 1. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Gulf Power will have to pay and allows the energy provider to pass that savings along to customers. – February 14, 2018 Pensacola New Journal article

Hawaiian Electric, Maui Electric, Hawaii Electric Light (Honolulu, Hawaii)

The utility expects that rates will be lowered for customers thanks to tax reform. The 460,000 customers of the Hawaiian Electric Companies could see lower electric bills as a result of the federal corporate income tax cut. Changes to federal tax law will lower corporate rates from 35 percent to 21 percent starting this year. That is expected to result in a lower tax bill for Hawaiian Electric, Maui Electric and Hawaiʽi Electric Light. State and federal taxes are included in the base electric rate and with a lower federal tax, the tax rate imbedded in the bill will be reduced. “We’re in the process of analyzing the impact of the tax overhaul but it’s pretty clear at this point that this will benefit most customers,” said Tayne Sekimura, senior vice president and chief financial officer of the Hawaiian Electric Companies. “We will work with our regulators and the Consumer Advocate to determine the exact amount of the tax reduction and the best way to pass on the savings.” Any change in the base rate is subject to the approval of the Public Utilities Commission, which will also determine the timing of any change in rates. – January 10, 2018 Hawaiian Electric press release

Idaho Power (Boise, Idaho)

The utility requested to pass along tax reform savings to customers. Idaho Power has filed a settlement agreement with the Idaho Public Utilities Commission (IPUC) that, if approved, will result in reduced rates for customers within the company’s Idaho service area in 2018 stemming from recent federal and Idaho state tax rate changes.

According to an agreement between Idaho Power, IPUC Staff and the Industrial Customers of Idaho Power, customers will see a total benefit associated with reduced tax expense of $33.9 million, provided through: 1) a base rate reduction of approximately $18.7 million, 2) an additional $7.8 million decrease that will be provided through the 2018 Power Cost Adjustment mechanism, and 3) a non-cash annual benefit of $7.4 million in the form of an offset to other deferred costs.

If the proposal is approved by the IPUC as filed, the typical Idaho residential customer using 950 kilowatt-hours (kWh) of energy per month will see a monthly bill decrease of $2.15, beginning June 1. – April 13, 2018 Idaho Power press release

Illinois American Water (Urbana, Illinois)

The utility requested to pass along tax reform savings to customers. The Federal Tax Cuts and Jobs Act decreased the corporate tax rate from 35 percent to 21 percent. On April 19, 2018, the Illinois Commerce Commission approved an order for Illinois utilities to pass savings from the national tax reform on to customers.

Illinois American Water is returning about $10.8 million to customers over the next 11 months. Illinois American Water customers will see a credit on their May 2018 bill continuing through March 2019. After this initial 11-month timeframe, the credit amount will be reconciled and adjusted appropriately. The new credit amount will be communicated at that time.

According to Illinois American Water President Bruce Hauk, the credit to bills is a benefit provided through the financial model of a regulated investor-owned utility. He said, “We are pleased to be able to share this savings with our customers. In addition to this savings, our team works hard every day to control operational and maintenance costs so we can invest in our critical infrastructure and minimize impact to customer bills.”

Depending on service area, Illinois American Water service customers will see a credit on their bill for between about $1.39 a month to $2.35 a month. Wastewater service customers will see a credit on their bill between about $1.20 a month to $3.90 a month. – May 7, 2018, Business Wire article – May 7, 2018 Business Wire article

Indiana-Michigan Power (Fort Wayne, Indiana)

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

The Journal Gazette reports Indiana Michigan Power had initially sought a 20 percent rate increase to generate $263 million in new revenue. That was reduced under a settlement between the company, Indiana’s state consumer advocate and several cities, companies and advocacy groups. Some of the decrease was also attributed to the recent federal tax cuts. – May 31, 2018 AP article

Intermountain Gas (Idaho Falls, Idaho)

The utility will pass along tax cut savings to customers. State regulators have approved a rate decrease for customers of Intermountain Gas Company, to reflect the benefits of federal and state tax cuts. The decision returns approximately $5.1 million to customers. That is a 2.62-percent decrease for residential customers. It took effect June 1- June 22, 2018 East Idaho News

Iowa American Water (Davenport, Iowa)

The utility will pass along tax savings to customers. And Iowa-American Water Co., which provides service in eastern Iowa, would provide $1.5 million and $1.8 million to customers. – January 29, 2018 Des Moines Register article

ITC Holdings Corporation (Novi, Michigan)

The utility will pass tax reform savings to its customers. ITC Holdings Corp. (ITC), the nation’s largest independent electricity transmission company, today announced it is reducing its customer rates as a result of the lower federal corporate income tax rate the company received under the Tax Cuts & Jobs Act of 2017.

ITC’s wholesale electricity customers throughout the Midcontinent Independent System Operator (MISO) region will see an 8-to-10 percent reduction in transmission rates, retroactive to January 1, 2018, beginning with bills for services provided in March. A similar reduction will be made to ITC’s formula rate in the Southwest Power Pool region for future periods, effective back to January 1, 2018. – April 2, 2018 ITC Holdings Corporation article

Kansas City Power and Light (Kansas City, Missouri)

This will result in approximately $34.5 million in ongoing annual savings for KCP&L’s customers in Kansas. The Federal Energy Regulatory Commission recently approved KCP&L’s request to return the portion of tax reform savings set at the federal level to customers as quickly as possible. – May 1, 2018 KCP&L press release

Kentucky Utilities (Louisville, Kentucky)

“We had been supportive of the Tax Act all along because of the savings for our residential and business customers, so we are pleased that the commission acted quickly to enable us to deliver these savings so expeditiously. The other parties to this case — the Kentucky Attorney General and the Kentucky Industrial Utility Customers — truly had the customer in mind and a willingness to work together to reach a mutually acceptable solution,” said Kent Blake, chief financial officer at LG&E and KU. “With the colder-than-average winter, and subsequent high energy use, these savings will come at a key time for our customers.” – PPL Corporate press release

Liberty Utilities (Phoenix, Arizona)

The utility will pass along tax savings to customers. The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

The Commission has been working on rate adjustments every month since February. At the July Open Meeting, the Commission addressed federal tax adjustments for both Southwest Gas and Liberty Utilities with adjustments made to their revenue requirements of $20 million and $1.9 million respectively.- August 24, 2018 Prescott News Online

Liberty Utilities- Empire District (Joplin, Missouri)

The utility will pass along tax savings to customers. The Missouri Public Service Commission approved a proposal to reduce rates by $17.8 million. The rate decrease reflects a reduction in the corporate tax rate from 35% to 21% as a result of passage of the federal Tax Cuts and Jobs Act of 2017. For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, rates will decrease by approximately $5.16 a month. That decline is effective August 30. Liberty Utilities-Empire District serves approximately 151,700 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney. –August 16, 2018 KY3 News

Louisville Gas & Electric (Louisville, Kentucky)

The utility will pass tax cut savings to customers. If approved by the commission, customers would see nearly $180 million in savings in the form of a reduction on the Environmental Surcharge line item on their bill in March, followed by a new line item credit on the bill based on energy consumption starting in April.

Madison Gas & Electric (Madison, Wisconsin)

The utility will pass along tax cut savings to customers. 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. – May 26, 2018 Wisconsin State Journal

Metropolitan Edison Company (Akron, Ohio)

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

Michigan Gas Utilities (Monroe, Michigan)

Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).

“Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes,” said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” –May 30, 2018 LARA Public Service Commission press release

MidAmerican Energy Company (Des Moines, Iowa)

The utility will pass along tax reform savings to customers. Thanks to tax reform, utility bills will start going down soon. MidAmerican Energy says bills will be lowered for its Illinois customers starting in April, and probably for Iowa customers in May.

Spokeswoman Tina Hoffman says the company’s tax rate dropped from 35 to 21 per cent, and as a result Illinois electric and natural gas customers will save about 50 dollars per year. The average Iowa customer would save 30 dollars. But tax reform will affect more than just MidAmerican’s corporate tax rate.

“And what we’re proposing to do is create an account that captures these benefits that will help us in the long-term make sure that we reduce the size of even the need for future rate cases. So eventually that keeps rates low for customers well into the future.” Hoffman says the Illinois Commerce Commission has already approved the company’s proposal and the savings should show up in residential bills this month. However the Iowa Utilities Board has not yet approved MidAmerican’s proposal but she thinks it could lower Iowa bills beginning in May.- April 2, 2018 WVIK article

Minnesota Power (Duluth, Minnesota)

The utility will pass tax cut savings to customers. “When final rates go into effect late this year, customers will start receiving a 1.5259% credit on their monthly bill through a new line item, called the tax cut rider, totaling about $10 million a year refund until our next rate case,” Rutledge said. For a $100 power bill, that’s about $1.53 returned – August 10, 2018 Duluth News Tribune article

Missouri American Water (Joplin, Missouri)

The utility will pass along tax cut savings to customers. Officials also said the rates reflect $18 million in savings for customers because of the new federal tax cuts program. Missouri American is the first regulated water and sewer company in the state to adjust its customer rates based on the tax cuts. –May 16, 2018 News-Press Now article

Montana-Dakota Utilities Company (Bismarck, North Dakota)

The utility will pass along tax reform savings to customers. MDU requested a smaller interim natural gas rate increase that would reduce residential customers’ bills by $1 per month. It sought to reduce its interim rate increase from 12.5 percent to 7.4 percent. –February 27, 2018 Bismarck Tribune

National Fuel Gas Distribution Corporation (Erie, Pennsylvania)

National Grid (Waltham, Massachusetts)

The utility plans to pass along tax savings to customers. On the heels of expansive federal tax reform, National Grid will request a reduction in its pending natural gas distribution rate proposal with the Massachusetts Department of Public Utilities.

When federal tax reform legislation was signed into law in late December, the company began assessing how reductions in corporate tax rates could benefit customers. The company announced today it will update its rate proposal with the DPU for natural gas rates that will go into effect in October 2018: reducing the original $87 million request to an estimated $51 million.

“We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills,” said Cordi O’Hara, president and COO of National Grid in Massachusetts. “We’ll continue to seek opportunities to provide this benefit to all of our customers.”

National Grid Rhode Island (Providence, Rhode Island)

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

“Today’s announcement is a key indicator of how this new tax law can provide real benefits to National Grid’s customers,” said Tim Horan, president and COO of National Grid in Rhode Island. “We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills.” –January 11, 2018 National Grid press

Nevada Energy (Las Vegas, Nevada)

The utility is passing tax reform savings to customers. Effective April 1, 2018, we are passing on to you a monthly savings as a result of federal tax reform – Excerpt from NVEnergy’s Energy pricing plans

New Jersey American Water (Camden, New Jersey)

The utility will pass along tax cut savings to customers. New Jersey American Water customers also recently had a rate decrease as a result of the Tax Cuts and Jobs Act. On April 1, 2018, most customer water rates were reduced by 5.9 percent (and 2.3 percent for former Shorelands Water Company customers). The water bill for the average residential customer using 6,000 gallons a month decreased approximately $3.36 per month ($1.00 per month for former Shorelands customers), and the average residential wastewater bill decreased between $1.49 and $5.81 per month, depending on service area. The BPU is continuing their review of the overall impact of the new tax act, and further rate adjustments are anticipated in the coming months – May 11, 2018 Business Wire article

New Jersey Natural Gas (Wall, New Jersey)

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

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

For the rate decrease, a typical residential heating customer using 1,000 therms a year will see their annual bill go from $1,054 to $1,023, a savings of $31. When combined with the one-time refund, the customer will see an overall reduction of $78 or 7.4 percent this year. This adjustment will help ensure rates reflect the lower tax structure and any appropriate savings are passed on to customers. – March 2, 2018 New Jersey Resources press

Nicor Gas (Naperville, Illinois)

The utility will pass on tax reform savings to customers. Nicor Gas customers can expect their rates to go down about $1.73 a month, effective in early May, the company said.

The Illinois Commerce Commission has approved a reduction of Nicor Gas’ distribution rates totaling $43.6 million. The reduction stems from the Tax Cuts and Jobs Act of 2017, which lowered Nicor Gas’ annual tax expense, according to a statement. “We are pleased to share that benefit with our customers,” said Nicor Gas President Melvin D. Williams – May 3, 2018 Daily Herald article

Northern Indiana Public Service Company (Merrillville, Indiana)

The utility requested that customers’ natural gas rates be lowered. As a result of the newly enacted federal tax reform, NIPSCO submitted a request with the Indiana Utility Regulatory Commission (IURC) to lower its previous request to modify natural gas base rates by $26 million. The reduction means natural gas residential customers would pay nearly $2 less per month following the Commissions’ decision in the company’s natural gas rate proposal, which is expected in the second half of 2018. The average natural gas residential customer paying $50 per month is projected to see their bill go to $58.10 per month, subject to IURC approval, rather than $59.80 as originally proposed. Electric rate benefits from federal tax reform are being considered and reviewed separately. NIPSCO’s original proposal, which was made last September, is four months into a formal regulatory review process, which includes opportunities for public input and involvement. According to the IURC’s monthly residential bill comparisons, NIPSCO is currently the lowest natural gas cost provider in Indiana.”- January 29, 2018 Northern Indiana Public Service Company press

Northern States Power (Minneapolis, Minnesota)

“Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes,” said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission press release

North Western Energy (Butte, Montana)

North Western 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 North Western’s electric business. Half the money would be spent removing hazard trees that pose a fire or outage risk. – April 3, 2018 Billings Gazette article

NorthWestern Energy (Butte, Montana)

The utility will pass tax reform savings to its customers. 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.- April 3, 2018 Billings Gazette article

Oklahoma Gas & Electric (Oklahoma City, Oklahoma)

The utility will pass along tax savings to customers. Oklahoma Gas and Electric, a subsidiary of Oklahoma City-based OGE Energy Corp. (NYSE: OGE), announced today that it has asked the Oklahoma Corporation Commission to review the company’s request to recover its approximately $390 million investment in the Mustang Energy Center, the first, new, natural-gas fired plant the company has built in more than 30 years. The new plant includes seven, modern quick-start natural-gas turbines that replaced two of the oldest natural gas-fired units in the country.

The company initially planned to seek a rate increase of about $70 million per year to recover its investment. Following President Donald Trump’s signing of federal tax reform in December 2017, the company delayed its filing from late December to today to adjust its proposed filing to ensure customers benefited from the lower corporate tax rate. The company is now seeking just under $2 million per year, and the average Oklahoma residential customer will see no monthly bill increase. OG&E’s rates today are 24 percent below the national average, placing them among the lowest in the country.

“The president’s signing of tax reform in December was fortuitous for customer and the company,” said OG&E spokesman Brian Alford. “When it became evident in November that tax reform was a real possibility, we began having conversations at the Oklahoma Corporation Commission about incorporating the benefits of tax reform into our upcoming filing. Today’s filing reflects those benefits as well as our ongoing efforts to manage costs, which provide customers with a modern, highly efficient power plant at virtually no impact on monthly electric bills.”- January 16, 2018 Oklahoma Gas & Electric Company press release

Oncor Electric Delivery (Dallas, Texas)

The utility will pass along tax savings to customers. The company delivering electricity to most North Texans would likely save millions from the new corporate tax rate cut. But that entire windfall is expected to go back to consumers. That’s the result of a recently completed rate case where the state’s largest regulated utility agreed to return all tax cut benefits to its customers.

The $1.5-trillion tax overhaul hadn’t been completed when Oncor’s rate negotiation with the regulator was settled. And the Public Utility Commission of Texas, the agency that regulates the operations of electricity-distribution companies like Oncor, made sure to cover the possibility of a tax cut.

“Oncor will work with the PUCT to determine the best way to distribute those savings back to customers,” said spokesman Geoff Bailey via email. “In short, we are capturing these tax savings for future refunds to our customers.” – January 16, 2018 Dallas Morning News

One Gas Inc. (Tulsa, Oklahoma)

The utility will pass along tax cut savings to customers. One Gas is required to pass along corporate tax savings to utility customers, and the company established a related regulatory liability for the difference between what the company’s tax obligations are and how much customers are paying. The liability resulted in a $12.3 million reduction in first-quarter revenue, company officials said during a May 1 earnings conference call. – May 7, 2018, SNL Gas Week article excerpt

Otter Tail Power Company (Fergus Falls, Minnesota)

The utility will pass along tax reform savings to customers. Otter Tail sought to reduce its interim electric rate increase from 10.4 percent to 6.8 percent. Typical residential customers would see a reduction of about $3.10 a month, a company spokeswoman said, and business customers would see an $18.25 drop.

“Federal corporate incomes taxes are a cost of service to our customers,” Otter Tail said in its request. “The reduction of the federal corporate income tax rate from 35 percent to 21 percent reduces Otter Tail’s cost of providing service.”-February 27, 2018 Bismarck Tribune article

Pacific Gas & Electric (San Francisco, California)

The utility will pass along tax cut savings to customers. 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. – March 30, 2018 PG&E press release

Pacific Power (Portland, Oregon)

The utility will pass along tax savings to customers. The new Republican tax plan has brought a variety of tax cuts. Pacific Power says they are committed to passing the benefit of this tax cut on to customers.

“We strive to provide our customers reliable service while keeping rates low,” said Stefan Bird, President and CEO of Pacific Power. “The benefit of this tax cut should be passed on to our customers – and we will work with our regulators and stakeholders on the best way to do that.” –January 3, 2018 My Columbia Basin article

Pacific Corp (Draper, Utah)

The utility will pass along tax cut savings to customers. Utah regulators have approved changes to PacifiCorp’s electric service rates, reducing them by $61 million through the remainder of this year due to federal tax reform.

Changes in federal tax law passed in December 2017 will reduce rates for customers of PacifiCorp’s Rocky Mountain Power division in Utah by a 4.7% overall average, according to the Berkshire Hathaway Energy subsidiary. The Utah Public Service Commission on April 27 ordered the rate cuts to take effect on May 1. PacifiCorp said the average residential customer using 698 kWh a month would see a “tax cut adjustment” on their bill of about $4.17.

PECO Energy Company (Philadelphia, Pennsylvania)

Pennsylvania Electric Company (Akron, Ohio)

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

Pennsylvania Power Company (Akron, Ohio)

Pennsylvania- American Water Company (Hershey, Pennsylvania)

Pennsylvania- American Water Company-Wastewater (Hershey, Pennsylvania)

Peoples Gas Company LLC (Pittsburg, Pennsylvania)

Peoples Natural Gas Company LLC –Equitable Division (Pittsburg, Pennsylvania)

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

Pepco (Washington D.C.)

The utility will pass along tax savings to customers. Pepco today announced they will file with the Public Service Commission of the District of Columbia in early February, outlining plans to provide annual tax savings to more than 296,000 electric customers in the District of Columbia. If approved, Pepco would plan to begin providing a credit lowering customer bills starting in the first quarter of 2018.

The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Pepco will have to pay. “The tax law will result in lower bills for our customers and lower taxes for Pepco,” said Dave Velazquez, President and CEO, Pepco Holdings, which includes Pepco. – January 5, 2018 Pepco press release

Piedmont Natural Gas Company (Nashville, Tennessee)

The utility will pass along tax cut savings to customers.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”). – February 6, 2018 Tennessee PUC report

Pike County Light & Power Company (Milford, Pennsylvania)

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

Potomac Edison (Martinsburg, West Virginia)

The utility is passing on tax savings to customers. More than 85,000 Potomac Edison customers in the Eastern Panhandle should see lower bills in the coming weeks thanks to federal tax reforms adopted in December. The West Virginia Public Service Commission announced Friday that it approved rate reduction settlements for utility companies totaling almost $85 million annually, starting next month.

“Bottom line: starting Sept. 1, the tax reduction will lower bills for typical … residential customers by nearly $2 per month,” FirstEnergy spokesman Todd Meyers wrote in an email on Friday. FirstEnergy is the parent company of Potomac Edison. “That means our average residential customer using 1,000 kilowatt-hours per month will see their monthly (bill) fall to $108.25 from $110.22,” – August 24, 2018 Herald Mail Media

PPL Electric Utilities Corporation (Allentown, Pennsylvania)

Public Service Company Of New Mexico (Albuquerque, New Mexico)

The utility will pass tax reform savings to customers. The company will gain about $48 million from the lowering of the corporate income tax rate from 35 percent to 21 percent. It will pass those gains onto consumers starting this year as part of Public Service Co. of New Mexico’s latest rate case that concluded in December, allowing PNM to lower its newest rate hike to just 1.4 percent. – February 27, 2018 Albuquerque Journal article

Public Service Company Of Oklahoma (Tulsa, Oklahoma)

The utility will pass along tax cut savings to customers. A recommendation the judge filed in the case states evidence and testimony indicates the company accumulated the income thanks to the Tax Cuts and Jobs Act approved by Congress at the end of 2017.

“The tax cut provides an opportunity for real savings for customers, especially during the summer months when energy usage rises along with the temperature,” Hunter stated in a release. “We hope the members of the Oklahoma Corporation Commission complete their review as quickly as possible to benefit PSO customers.”- June 29, 2018 NewsOk article

Public Service Enterprise Group (Newark, New Jersey)

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

In its filing with the NJ Board of Public Utilities, PSE&G will reduce rates by approximately $114 million on an annual basis effective April 1 to reflect lower federal taxes the utility will pay. The typical residential combined electric and gas customer will save nearly $41 per year. – March 2, 2018 PSE&G press release

Puget Sound Energy Inc. (Bellevue, Washington)

The utility will pass along tax cut savings to customers. Washington state utility regulators approved electric rate reductions for Puget Sound Energy Inc. totaling $108.5 million for 2018, with two-thirds of that amount reflecting cuts to the company’s federal corporate income tax rate.

The federal tax overhaul of 2017 lowered the utility’s corporate income tax return from 35% to 21%, and the Washington Utilities and Transportation Commission determined that the financial benefit should be passed on to the company’s customers. Those customers will continue to see the benefits of the tax rate reduction in the years ahead as well because the regulators also agreed to cut Puget Sound Energy’s, or PSE’s, annual base electric rates by $72.9 million. – May 7, 2018, SNL Electric Utility Report

Quadvest (Tomball, Texas)

The utility will pass along tax reform savings to customers. “On behalf of the approximately 30,000 customers Quadvest Utility serves in Southeast Texas, we would like to thank you for your integral part in the development and ultimate passage of the Tax Cuts and Jobs Act of FY2017. The passage of this key piece of legislation has allowed Quadvest to proactively reduce our customers’ base water and sewer fees by 26% or almost $90 per year/family.” –Simon Sequeira, President of Quadvest

Quail Creek (Phoenix, Arizona)

Roanoke Gas (Roanoke, Virginia)

The utility will pass tax cut savings on to customers.The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.

Rocky Mountain Power (Portland, Oregon)

The utility company will pass along tax savings to customers. Rocky Mountain Power says it plans to pass some of its federal tax savings on to customers. But, the company isn’t sure how much or when.

“We strive to provide our customers reliable service while keeping rates low,” said Cindy Crane, President and CEO of Rocky Mountain Power. “The benefit of this tax cut should be passed on to our customers — and we will work with our regulators and stakeholders on the best way to do that.”

SEMCO Energy Gas Company (Port Huron, CA)

The utility will pass along tax cut savings to customers. The Michigan Public Service Commission (MPSC) approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes. Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).

“Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes,” said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission press release

Southwest Gas (Las Vegas, Nevada)

The utility will pass along tax cut savings to customers. Southwest Gas said its rate request incorporates reduced tax liability associated with the 2017 federal tax overhaul, which cut the corporate tax rate to 21%, among other changes. The tax cuts partially offset the rate increase the utility is requesting, the company said. – June 1, 2018 SNL Financial article

Spire Inc. (St. Louis, Missouri)

The utility will pass tax reform savings to customers. Typical residential customers in western Missouri will see their Spire natural gas bill decrease slightly by approximately 40 cents per month. This includes a decrease to the monthly customer charge from $23 to $20. Spire bills remain lower than a decade ago even while the company has upgraded hundreds of miles of pipeline since joining the Spire family five years ago. These savings are due primarily to the recent growth of Spire and federal tax reform. – March 22, 2018 Western Missouri press release

Suez Water Idaho Inc. (Boise, Idaho)

The utility will pass along tax cut savings to customers.“A main feature of the tax law that took effect Jan. 1 was to reduce the federal corporate tax rate from 35 percent to 21 percent,” noted one such release, from the Idaho Public Utilities Commission. “Soon after the federal law took effect, Idaho Governor C.L. ‘Butch’ Otter signed into law House Bill 463, reducing the state’s corporate tax rate from 7.4 percent to 6.925 percent. Since a utility’s tax expenses are a factor in determining customer rates, the Commission directed all regulated utilities in the state with more than 200 customers to report the financial benefits of the law and how it planned to pass those benefits along to customers.”

Utility rate reductions are as follows:

Avista – 5.3 percent for electricity and 6.1 percent for natural gas

Idaho Power – 7.06 percent

Intermountain Gas – 2.62 percent

Rocky Mountain Power – 1 percent

Suez Water Idaho Inc. – 5.6 percent

– June 19, 2018 Idaho Business Review

Superior Water, Light & Power (Superior, Wisconsin)

The utility will pass along tax reform savings to customers. 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.-May 29, 2018 Superior Telegram article

Tampa Electric (Tampa, Florida)

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

Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to cover the cost of restoring power after Hurricane Irma and several other earlier named storms. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019. – March 1, 2018 Tampa Electric press

Tennessee American Water Company (Chattanooga, Tennessee)

The United Illuminating Company (New Haven, Connecticut)

The utility will pass tax reform savings to customers.

Tucson Electric Power Company (Tucson, Arizona)

The utility will pass tax reform savings to customers. EP and its sister utilities “believe it is in the public interest to share a substantial portion of the expected income tax savings with their respective customers on an expedited basis,” the companies said.

TEP says its proposals may include a fast-tracked regulatory approval process to implement a billing credit as soon as possible; a higher seasonal credit that would help offset customer bills during higher usage months; or bill credits that would decline over time while still smoothing the bill impacts of future rate requests. – February 2, 2018 Tuscon.com article

UGI Central Penn Gas Inc. (Shippensburg, Pennsylvania)

UGI Central Penn Gas Inc. (Valley Forge, Pennsylvania)

UGI Utilities (Valley Forge, Pennsylvania)

Upper Michigan Energy Resources Corporation “UMERC” (Iron Mountain, Michigan)

Upper Peninsula Power Company (Marquette, Michigan)

The utility will pass tax reform savings to its customers. The Tax Cuts and Jobs Act (TCJA) was passed into law at the end of 2017, effectively lowering corporate tax rates from 35 percent to 21 percent. Upper Peninsula Power Company (UPPCO) is requesting approval of a proposal that would pass along the savings attributable to the TCJA to its customers. UPPCO’s proposal was filed with the Michigan Public Service Commission (MPSC) on March 30th as part of the process that is required by the state for determining how the benefits of the TCJA are to be credited to the utility’s customers.

“Under our plan, a typical residential customer consuming 500 kilowatt hours per month will see a reduction of approximately $1.30 on their monthly bills,” said Brett French, Vice-President of Business Development and Communications. “This is in addition to approximately $7 in monthly savings currently being seen by a typical residential customer because of the steps we implemented in January. We anticipate our customers will begin to see the additional savings later this summer after the MPSC approves our plan.”-April 2, 2018 WLUC News article

Vermont Gas Systems, Inc. (South Burlington, Vermont)

The utility will pass savings from tax reform to customers. Vermont Gas announced today that it will reduce 2018 customer costs by $2.4 million, the full benefit of December’s federal tax law changes. Vermont Gas has filed a notice with the Vermont Public Utility Commission to give customers a monthly credit on 2018 bills, starting February 1^st and continuing through October 2018. Each of Vermont Gas’ 51,000 customers will receive a credit on their heating bill, based on usage, over the next eight months. For families, this bill credit will total almost $40 over the year; business could see even more.

“Our commitment to our customers is to maintain affordable and competitive rates, while offering top-rate customer service. We are so pleased to return the full benefit of this new federal tax reduction to every family and business this year,” said Don Rendall, President and CEO of Vermont Gas.

Virginia American Water Company (Alexandria, Virginia)

Virginia Electric Power Company (Richmond, Virginia)

Virginia Natural Gas (Virginia Beach, Virginia)

Washington Gas Light (Washington D.C.)

We Energies (Milwaukee, Wisconsin)

The utility will pass along tax reform savings to customers. 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. – April 26, 2018 Milwaukee Journal Sentinel

Wellsboro Electric Company (Wellsboro, Pennsylvania)

West Penn Power Company (Greensburg, Pennsylvania)

WeStar Energy (Topeka, Kansas)

The utility will pass along tax savings to customers. 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.” -January 18, 2018 WeStar Energy press release

West Virginia American Water (Charleston, West Virginia)

The utility will pass tax savings on to customers. West Virginia American Water Company announced a settlement plan last week which — if approved by the PSC — would result in an average savings of $3.77 a month for water and sewer customers in the state.

“The recent federal tax reform will save our customers an estimated $4.6 million annually, so we are passing these savings on to our customers beginning next month,” Brian Bruce, president of West Virginia American Water. – August 21, 2018 Bluefield Daily Telegraph

Xcel Energy (Denver, Colorado)

The utility will pass tax savings on to customers. Colorado American Water Company announced a settlement plan last week which — if approved by the PSC — would result in an average savings of $3.77 a month for water and sewer customers in the state.

This information was obtained from www.atr.org

TaxConnections Admin

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2 comments on “Utility Energy Savings State By State – Tax Cuts And Jobs Act”

G Mesa
January 10, 2019 at 9:39 am
There seems to be an editing error regarding Xcel Energy. The paragraph discusses West Virginia American Water
- TaxConnections Admin
  January 10, 2019 at 12:22 pm
  G Mesa,
  You are awesome for bringing this to our attention so we could correct it.
  Kat Jennings