(Lansing - December 28, 2017) - The Michigan Public Service Commission
has ordered all rate-regulated utilities to report to the Commission on the
impact passage of the new federal tax law will have on their customers.
Commission Chairman Sally Talberg said a special meeting was called to make sure
the savings are calculated from the effective day of the federal legislation,
which is Jan. 1, 2018.
The new law, signed by President Donald Trump on
December 22, is expected to reduce the amount utilities will pay in federal
“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
January 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 19 to file their comments with the Commission (Case No. U-18494) on how
they propose to return savings to ratepayers. Other interested parties will have
until Feb. 2 to respond to utility proposals. The Commission will then determine
how and when the savings will flow back to ratepayers.
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.
Don't expect any huge savings on your
utility bills. Since the amount of profit permitted to these regulated utilities
is controlled by the Michigan Public Service Commission, savings, if any, are
expected to be minimal.