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Lower corporate taxes could yield utility bill savings

Among other changes, the new federal tax code set to take effect next week could result in lower utility bills for some ratepayers.

The bill reduces the corporate tax rate from 35 percent to 21 percent in 2018, which will result in millions of dollars in cost savings for investor-owned utilities such as Xcel Energy, which serves about 257,000 customers in western Wisconsin.

Because the electric and gas rates set by state regulators are based on estimated expenses, those savings should be passed on to consumers, said Tom Content, executive director of the Citizens Utility Board, which represents residential and small commercial ratepayers.

“This is customer money,” he said. “Taxes should flow right back.”

Content said Wisconsin’s investor-owned utilities could see savings of tens of millions of dollars.

Xcel spokeswoman Christine Ouellette said the company has not yet estimated its savings or how that will affect customer bills.

Earlier this month the Public Service Commission approved a 2018 rate request that will result in an increase of about $2 a month for the average Xcel residential electric bill and about $4.75 more for natural gas.

PSC staff will be talking with utilities next week and directing them to calculate the change in their expected tax bills and to defer the savings “until the commission directs how the savings are applied in the ratepayer’s best interest,” said PSC spokesman Matthew Spencer.

Because of its nonprofit status, La Crosse-based Dairyland Power Cooperative will not benefit from the tax law changes, said company spokeswoman Deb Mirasola.

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Reporter

Rhymes with Lubbock. La Crosse Tribune reporter and data geek. Covers energy, transportation and the environment, among other things.

(6) comments

Climatehoax

Ive been told a million times by libs that the only people who will benefit from the tax bill are millionaires. I think a lot of middle and lower income people heat their homes. More fake news from the liberal MSM

nels

Xcel and we energies have not paid a Penney of income tax for 8 years running ,nothing to save

canman

Anyone who believes that lower corporate tax rates will be passed back to the consumer is delusional, a few will invest the money back into their business, a minute handful will pass “some” of the saving back, while the overwhelming majority will put the tax savings directly into the pockets of the executive management team.

sybil

We've been here before and there were no new jobs created and no wage hikes and record high corporate profits. If AT&T can afford all those $1000 bonuses today, they could have afforded higher wages and more jobs over the past many years. I don't care what they do with their money. No one but their very wealthy clients will be able to afford their products. I have learned to do without a lot of "stuff". Ordinary people will see $60.00 more, maybe, in their paychecks come February, but higher healthcare premiums and costs or no insurance coverage at all; no CHIPS for the first time in 20 years; and by this time next year, Medicare and Social Security will be on the block for paring down because there is no revenue for all of the wars Trump will be waging by then. He threatens countries who will vote to sanction Israel with "no aid".....surely, they are shaking in their boots, as if they couldn't get that aide elsewhere if they really needed it, like, China, USSR, his buddies? They all look as gleeful as they did when they shut down the government....we'll see how long this glee fest lasts and if they will blame their failure on "Obama" this time.

Regards,

expert writer

https://writemyessay.pro

Slider

Apparently our "expert writer" can't figure out how to post on the Tribune site.

sybil

We've been here before and there were no new jobs created and no wage hikes and record high corporate profits.

If AT&T can afford all those $1000 bonuses today, they could have afforded higher wages and more jobs over the past many years.

I don't care what they do with their money. No one but their very wealthy clients will be able to afford their products. I have learned to do without a lot of "stuff".

Ordinary people will see $60.00 more, maybe, in their paychecks come February, but higher healthcare premiums and costs or no insurance coverage at all; no CHIPS for the first time in 20 years; and by this time next year, Medicare and Social Security will be on the block for paring down because there is no revenue for all of the wars Trump will be waging by then.

He threatens countries who will vote to sanction Israel with "no aid".....surely, they are shaking in their boots, as if they couldn't get that aide elsewhere if they really needed it, like, China, USSR, his buddies?

They all look as gleeful as they did when they shut down the government....we'll see how long this glee fest lasts and if they will blame their failure on "Obama" this time.

Regards,
expert writer
https://writemyessay.pro

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