180118 Tax code impact generic docket.pdf

Case No: GNR-U-18-01
Contact: Matt Evans
[phone]
[phone]
www.puc.idaho.gov
Regulators ask utilities to report impact of federal
tax changes
BOISE (Jan. 18, 2018) – The Idaho Public Utilities Commission has opened an
investigation to determine whether regulated utilities’ rates and charges should be
adjusted to reflect the impact of the federal tax law passed in late 2017.
The Tax Cuts and Jobs Act of 2017 reduced the federal corporate tax rate from 35 percent
to 21 percent, a significant reduction that will reduce the tax bill for many utilities.
Since tax expenses are a factor in determining rates and charges, the Commission wants to
protect Idahoans from paying rates calculated on an inflated tax rate.
The first step in the investigation is to require regulated utilities to report the financial
benefits gained from the tax rate reduction by March 30. Each report must include
proposed tariff schedules to account for the changes in federal tax law.
Once a report is filed, Commission staff will audit the utility and report the results to the
Commission within 60 days.
If Commission staff disagrees with a utility’s proposed tariffs of rates and charges, and
recommends changes, the Commission would issue an order directing the utility to
demonstrate why the recommendations should not be heeded.
The Commission’s order applies to all regulated utilities in Idaho except water companies
with fewer than 200 customers and the small electric utility Atlanta Power.
The Commission adopted a similar approach decades ago to determine the effects of the
federal Tax Reform Act of 1986.
For more information about this case, visit the Commission’s web site, www.puc.idaho.gov.
Click on the “Multi-Utility” heading under “Open Cases” and scroll down to case number
GNR-U-18-01.