HomeMy WebLinkAbout20220906_GNRU1801_de.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: DONN ENGLISH
DAYN HARDLIE
DATE: SEPTEMBER 6, 2022
SUBJECT: IN THE MATTER OF THE INVESTIGATION INTO THE IMPACT OF
FEDERAL TAX CODE REVISIONS ON UTILITY COSTS AND
RATEMAKING; CASE NO. GNR-U-18-01.
BACKGROUND
On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act of 2017
(“TCJA”). Effective January 1, 2018, the TCJA decreased the federal corporate tax rate from
35% to 21% and required companies to revalue their deferred tax amounts at the new corporate
tax rate which resulted in excess deferred federal income taxes. Balances associated with
regulated utility operations resulted in a balance sheet reclassification from a deferred tax to a
deferred regulatory asset or liability. In response, the Commission opened a multi-utility case to
investigate whether to adjust the rates of certain utilities that benefit from the reduced tax rate.
See Order No. 33965. The Commission directed all affected utilities to immediately account for
the tax benefits as a regulatory liability, and to report on how the tax changes affected them, and
how the resulting benefits could be passed on to customers. Id. at 1-2.
Staff worked with the affected utilities to determine how to return the tax benefits to
customers. In total, TCJA resulted in annual savings to Idaho customers of approximately $60.4
million. An additional $62.3 million in one-time savings was also returned to Idaho customers
through various rate making mechanisms.
DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff believes that Idaho utilities have either returned, or have an approved plan to return,
all tax savings associated with the TCJA as directed in Order No. 33965. As such, Staff
recommends that Case No. GNR-U-18-01 be officially closed.
COMMISSION DECISION
Does the Commission wish to close Case No. GNR-U-18-01 In the Matter of the
Investigation into the Impact of Federal Tax Code Revisions on Utility Costs and Rate Making?
_____________________________
Donn English
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