PURA To Decide If Utilities Must Share Tax Savings With Customers
In Connecticut utility regulators are to decide Wednesday whether they will require the state’s largest utilities to pass along to ratepayers the federal tax savings they’ve received from the Trump administration.
The Trump administration cut federal tax on corporate profits from 34 to 21 percent. That has resulted in windfall profits for Connecticut’s two largest utilities: Eversource Energy, the parent company of Connecticut Light and Power, and Avangrid, the parent company of United Illuminating. Connecticut’s Public Utility Regulatory Authority, PURA, wants those profits passed on to ratepayers. The utilities say they’ve done this. Mitch Gross, a spokesman for Eversource, said the new tax rates are accounted for in the company’s current rate requests.
“As a result of our rate review settlements reviewed by PURA last year, our rates have been adjusted to reflect the change in the tax law. And we are pleased we’ve been able to pass those savings along to our gas and electric customers.”
Eversource saved $57 million in federal income tax on its Connecticut operations in the first three quarters of 2018. Avangrid reported an initial tax saving of $7.5 million for its Connecticut subsidiary.
PURA commissioners say they’ll base their decision on a review of the rate adjustments requested by the utilities as they relate to the federal tax cuts.