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Upper Peninsula Power Company and SEMCO Energy Gas Company are among the utilities being ordered by the Michigan Public Service Commission to report on the impact passage of the new federal tax law will have on their customers.
The new law, signed by President Trump on December 22nd, is expected to reduce the amount utilities will pay in federal taxes.
The commission wants to make sure the savings are calculated from the effective day of the federal legislation.
“While regulatory accounting isn’t always the most headline-grabbing topic, the guidance the Commission is providing in today’s order is important because it maximizes our future options
as we sort through the totality of impacts the new federal tax law will have when it takes effect Jan. 1,” Commissioner Rachael Eubanks said. “The information we receive in this docket will be incredibly useful in understanding the magnitude of the expected reduction in federal taxes that the utilities pay, which is likely to be
significant. It will also provide broader input regarding the appropriate avenue for how to extend benefits to customers.”
Utilities have until January 19th to file their comments with the Commission on how they propose to return savings to ratepayers.
Other interested parties will have until February 2nd to respond to utility proposals.
The Commission will then determine how and when the savings will flow back to ratepayers.
The order applies to Alpena Power Co.; Consumers Energy Co.; Detroit Thermal, LLC; DTE Electric Co.; DTE Gas Co.; Indiana Michigan Power Co.; Northern States Power Co.; Upper Peninsula Power Co.; Upper Michigan Energy Resources Corp.; Wisconsin Electric Power Co.; Presque Isle Electric and Gas Co-Op; Michigan Gas Utilities Corp.; and SEMCO Energy Gas Co.
