Massachusetts orders utilities to lower rates after tax cut

[TexasTowelie]

BOSTON — State regulators are ordering Massachusetts utilities to lower their rates to reflect the reduction in the federal corporate tax rate approved by Congress.

The Department of Public Utilities on Friday instructed the utilities to account for any revenues associated with the difference between the previous and current federal corporate tax rates.

The agency also ordered the utilities to submit by May 1 their proposals to lower their rates to incorporate the reduction in the federal corporate tax rate.

Democratic Attorney General Maura Healey called the DPU decision "a huge victory for ratepayers" and said the agency had agreed with her office that all utility companies in Massachusetts must use the corporate savings from this federal tax bill to lower rates for customers.

Eversource had already agreed to lower their rates.

http://www.bostonherald.com/business/business_markets/2018/02/massachusetts_orders_utilities_to_lower_rates_after_tax_cut

[bitterross]

1. Interesting. I wonder how many other states will do that?

Every state's public utility commission operates differently. I wonder how many others will require the utilities in their state to do this?

[TexasTowelie]

2. I've been reading about this occurring in many states around the country.

While on the surface it is good for consumers, it could also have a negative effect as far as jobs being cut at public utilities.

[bitterross]

3. I can see how it might affect jobs in the short-term.

While the taxes should be a pass-through and have no net effect on income I would think the cash flow is a different story. However, businesses pay their taxes on a quarterly or more frequent basis electronically these days. So they don't really get much time to play with the cash from the tax on the customer's bill.