INDIANAPOLIS – The Indiana Utility Regulatory Commission issued an order today initiating an investigation of the impact of the newly signed federal Tax Cuts and Jobs Act on investor-owned utilities in the state.
The Tax Cuts and Jobs Act, which was signed into law by President Donald Trump in December, contains provisions reducing the corporate tax rate of 35 percent to 21 percent and revising the federal tax structure.
According to a release from IURC, the commission “recognizes that the tax reform will create benefits for utility customers because of the reduced federal tax burden on investor-owned utilities. ... Accordingly, the purpose of this investigation is to review and consider the impacts from the act and how any resulting benefits should be realized by customers."
The law went into effect Monday.
"Because customer utility services rates today reflect a now materially altered tax structure, the reform-derived benefits are accruing today and going forward. Accordingly, the commission finds it is appropriate ... to immediately begin using regulatory accounting, such as the use of regulatory assets and liabilities, for all calculated differences resulting from the act and what would have been recorded if the Act did not go into effect."
NIPSCO, one of the biggest utilities in Indiana which provides gas and electric service to much of northern Indiana, issued a statement saying it will watch the review.
“It’s too early to tell the overall impact on customers’ bills, but we will be working through the process outlined by the Indiana Utility Regulatory Commission to determine a deliberate and thoughtful process for addressing these changes and their impacts,” the utility said in a statement released by Nick Meyer, director, external communications for NIPSCO.
The commission will seek comments from stakeholders and consumers on the issue. The public can provide comments to the IURC consumer counselor, the state agency that represents the public before the Commission. Comments can be emailed to uccinfo@oucc.in.gov.
