BOSTON – The newly passed federal tax law reduces the amount of taxes Eversource will be paying by millions of dollars and today the energy company has informed the Department of Public Utilities of its decision to voluntarily pass those savings along to customers.
“We believe it’s important that our customers reap the benefit of a lower tax rate,” said Eversource Massachusetts Electric Operations President Craig Hallstrom. “As a regulated power company our rates are based on our costs, including federal taxes, so if taxes are reduced ultimately costs are reduced and that benefits our customers.”
For example, customers in the company’s Eastern Massachusetts service territory will see a reduction in taxes of $47.6 million. This will cause a rate reduction of approximately $35.4 million, rather than the approved increase of $12.2 million (per the rate case decision Nov 30th). For Western Massachusetts, customers will benefit from a reduction in taxes of $8.3 million, reducing the approved increase of approximately $24.8 million to $16.5 million.
Given the complexity of the newly enacted law, over the next several months the company will be conducting a full evaluation by its tax department to calculate the exact amount that will be returned to customers and to see if there are further forthcoming reductions. If so, those changes would be reflected in rates effective January 1, 2019.
Eversource is asking the DPU to both recalculate the approved revenue requirements and to incorporate the reductions due to the modification of the federal income-tax rate for corporations from 35 percent to 21 percent effective when new rates go into effect in February.
Eversource (NYSE: ES) transmits and delivers electricity, natural gas and water to 1.7 million customers throughout Massachusetts. This includes approximately 1.4 million electric customers in 140 communities, 300,000 gas customers in 51 communities, and 19,500 water customers in five communities. Recognized as the top U.S. utility for its energy efficiency programs by the sustainability advocacy organization Ceres, Eversource harnesses the commitment of its more than 8,300 employees across three states to build a single, united company around the mission of safely delivering reliable energy and water with superior customer service. For more information, please visit our website (www.eversource.com) and follow us on Twitter (@eversourceMA) and Facebook (facebook.com/EversourceMA). For more information on our water services, visit www.aquarionwater.com.