Seeks Comments on Corporate Federal Income Tax Rate Changes and the Effects on Commission-Regulated Public Utilities, Ratepayers; M-2018-2641242
[48 Pa.B. 1253]
[Saturday, February 24, 2018]
On February 12, 2018, the Pennsylvania Public Utility Commission (Commission) issued a Secretarial Letter to establish a docket and begin a proceeding by which the Commission shall seek to determine the effects of the Tax Cuts and Jobs Act (TCJA) (Pub.L. No. 115-97) on the tax liabilities of Commission-regulated public utilities for 2018 and future years and the feasibility of reflecting the impacts in the rates charged to Pennsylvania utility ratepayers.
Under the TCJA, effective January 1, 2018, various provisions of the Tax Reform Act of 1986 have been repealed or amended and one of these modifications is a reduction in the corporate Federal Income Tax (FIT) rate from 35% to 21%. Commission-regulated public utilities are corporations subject to the FIT. The Commission will seek to determine any effects of the TCJA on the tax liabilities of Commission-regulated public utilities for 2018 and future years. Therefore, the Commission has directed that specified utilities provide responses to data requests designed to calculate, among other things, the net effect on income tax expense and rate base as a result of implementation of the TCJA. The Commission has further requested that interested parties submit comments addressing, among other things, whether the Commission should adjust current customer rates to reflect the reduced annual State and Federal income tax expenses of public utilities due to the tax rate changes in the TCJA. Responses to the data requests and comments are due on, or before, March 9, 2018.
The Secretarial Letter and data requests can be found on the Commission's web site at www.puc.pa.gov under docket number M-2018-2641242.
[Pa.B. Doc. No. 18-316. Filed for public inspection February 23, 2018, 9:00 a.m.]
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