Delaware utility advocate wants lower federal taxes to trigger lower electric bills


The Delaware Public Advocate says lower corporate taxes should lead to lower utility bills.

On December 22, President Trump signed the Tax Cut and Jobs Act of 2017 (TCJA) into law, This law will result in a reduction in the corporate tax rate from 35 percent to 21 percent, effective February 1, 2018.

The Division of the Public Advocate filed a petition with the Commission to reduce the rates of regulated utilities as a result of the TCJA corporate income taxes and other tax changes.

This petition asks the commission to direct each regulated utility to file an estimate of its determination of the effects on its cost of service and propose procedures for reducing rates to reflect those impacts on or before March 31, 2018.


“We have a responsibility to the customers of each regulated utility to safeguard against unjust and unreasonable rates. We believe, with the federal corporate tax changes, all additional money should flow back to the ratepayers and ask the Commission, and utilities, to approve reimbursement for this federal change” said Public Advocate Andrew Slater. “We look forward to working with the Commission, PSC Staff, and utilities to make sure refunds, due to the excess tax charges, are allocated to customers.”

Utility rate requests typically factor in various costs in calculating a rate of return on investment. That would presumably include income taxes paid by the company.

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