20180719press release - Suez.pdf

Case No: GNR-U-18-01
Order No. 34074
Contact: Matt Evans
[phone]
[phone]
www.puc.idaho.gov
Suez Water Idaho Inc. rates decline due to new tax
law
BOISE (June 15, 2018) – State regulators have approved a rate decrease for customers of
Suez Water Idaho Inc. that reflects the benefits of federal and state tax cuts.
The Idaho Public Utilities Commission’s decision reduces rates by about 5.6 percent.
The change took effect June 1 and is the result of a Commission decision in January that
ordered all utilities to report the impact of the tax law.
A main feature of the tax law that took effect Jan. 1 was to reduce the federal corporate tax
rate from 35 percent to 21 percent. Soon after the federal law took effect, Idaho Governor
C.L. “Butch” Otter signed into law House Bill 463, reducing the state’s corporate tax rate
from 7.4 percent to 6.925 percent.
Since a utility’s tax expenses are a factor in determining customer rates, the Commission
directed all regulated utilities in the state with more than 200 customers to report the
financial benefits of the law and how it planned to pass those benefits along to customers.
In its report filed in late March, Suez proposed addressing the impact of the new laws in a
future general rate case, noting that it had hired an outside consultant to determine the
consequences of the tax law on factors other than the income tax rate, such as deferred
liabilities.
Commission staff proposed an immediate rate reduction of $2,722,791, and the utility
agreed.
In its order, the Commission directed Suez to file an update to its deferred tax accounts
upon the conclusion of the consultant’s review, and to work with Commission staff to
determine any remaining benefits of the tax law.
To review the Commission’s decision and other documents filed in this case, including
those of other regulated utilities, go here. Or go to www.puc.idaho.gov and click on “Open
Cases” under the “Multi-Utility” heading and click on GNR-U-18-01.