Some Kentucky Utility Rates Will Drop Under New Tax Bill
The Kentucky Public Service Commission has ordered for-profit utilities to track their savings under lower corporate tax rates that go into effect today, January 1st. This means these savings will be passed onto customers in the form of lower electric, gas, or water rates.
The corporate tax rate will drop from 35 to 21 percent. The affected utilities will begin tracking their savings from this immediate reduction and the companies have been ordered to calculate the excess amount of future tax liabilities that they are carrying on their books and that will need to be refunded to rate payers.
So which utility companies fall under the order? Power companies include Duke Energy Kentucky, Kentucky Power Co, Kentucky Utilites Co., and Louisville Gas and Electric (LG & E). Natural gas companies include Atmos Energy Corp., Delta Natural Gas Co., and Columbia Natural Gas of Kentucky. Two water utilities affected are Kentucky-American Water Co. and Water Service Corp. of Kentucky.
A complaint filed by the Kentucky Industrial Utility Customers on December 21st argued that the rates of the four power companies listed above would no longer be "fair, just, and reasonable" as required by law once the federal tax cut goes into effect. The KIUC has estimated rate reductions could range from 4 to 7 percent.
HERE is a copy of the statement from the PSC.