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Economy

Public Service Commision orders utilities to report savings from federal tax cut

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Michigan’s thirteen rate-regulated utilities will be required to submit a report on how savings from the federal tax cuts will be used.

Under the GOP tax plan, which took effect on the first of January, the corporate tax rate fell from 35 percent to 21 percent.

The Michigan Public Service Commission will require the state’s public utilities to submit reports on how much they save under the new rate, along with proposals on how to use those savings.

Nick Assendelft is with the MPSC. He said it’s the MPSC’s job to ensure ratepayers see a benefit from corporate savings.

“The public service commission makes sure that what utilities are charging is fair and equitable for ratepayers so it goes to follow that if utilities are going to benefit in someway there is a fair and equitable benefit for ratepayers as well.”

Assendelft said it isn’t clear yet how utilities will use the money until they see the proposals.

“It could be anything from immediate rate relief to long term future investments in projects that will create a more reliable, robust grid, which would benefit ratepayers too. But until we see the proposals and the ideas that the utilities have the public service commission doesn’t have any firm ideas yet.”

Assendelft said the state’s thirteen utilities will have until January 19th to submit reports on how much the companies will save and how they propose to use those savings to benefit customers.