June 1, 2018 – The Michigan Public Service Commission recently approved settlement agreements with seven Michigan utility companies that will pass on savings to ratepayers from the federal tax rewrite. The savings will begin in July for customers of the seven utility companies. Three utility companies will not be impacted by the tax rewrite.
Dally Talberg, chairman of the MPSC, said, “Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes. Utilities are benefiting from the tax cuts and their customers should, too.”
The MPSC set up a three-step process in February for utilities operating in Michigan to calculate the amount of savings from the Tax Cut and Jobs Act. The Tax Cut and Jobs Act reduced the corporate rate from 35 percent to 21 percent and made other changes to tax rules. The process involved proposing how to pass the savings onto ratepayers.
“This is the first step in lowering ratepayers’ utility bills across Michigan as a result of corporate income tax changes,” MPSC Commissioner Rachael Eubanks said. “Savings will start to show up on bills in July, with even more reductions in the months to come. Customers are seeing the rate reductions more quickly than anticipated and we appreciate the speed in which utilities responded in making this customer benefit a priority.”
To learn more about ratepayer programs in your state, visit the LIHEAP Clearinghouse.
Source: media reports
