Lower electric, utility bills may follow tax reductions
A letter signed by an 18-state coalition asks the Federal Energy Regulatory Commission to adjust utility rates in accordance with recent tax reductions
Lower electricity and utility bills may be on the horizon for Americans as an 18-state, bipartisan coalition urges action on rate reductions.
Texas’ attorney general, Ken Paxton, has joined 17 other states in urging the Federal Energy Regulatory Commission to adjust revenue requirements of public utilities subject to the committee’s jurisdiction, including electric transmission and oil and gas pipeline owners.
The move follows Congress’ recent passing of the Tax Cuts and Jobs Act, which included a federal corporate tax rate reduction from 35 to 21 percent.
“Unless the Commission adjusts the Public Utilities’ revenue requirements to reflect this federal corporate income tax reduction, utility customers nationwide will be overpaying for their electric and gas service by hundreds of millions of dollars,” a letter from the coalition states.
According to the letter, adjusting rates and formulas would “ensure that customers promptly receive the full economic benefit of the tax reduction,” and prevent utility providers from “reaping a windfall” from the reduction in corporate income tax rates.