Indiana Utility Regulatory Commission launches investigation into federal tax legislation’s impact on utilities
The Indiana Utility Regulatory Commission (IURC) issued an order Wednesday beginning an investigation into the impact of the recent federal Tax Cuts and Jobs Act on investor-owned utilities in Indiana.
The legislation, which President Donald Trump signed on Dec. 22, 2017, includes provisions that reduce the corporate tax rate of 35 percent to 21 percent and modify the federal tax structure.
The IURC’s order directed that, because any benefits are already accruing, investor-owned utilities should begin using regulatory accounting immediately for differences resulting from the legislation and what would have occurred had the act not gone into effect.
“The Commission recognizes that the approved tax reform will create benefits for utility customers because of the reduced federal tax burden on Respondents (investor-owned utilities),” the order stated. “Accordingly, the purpose of this investigation is to review and consider the impacts from the Act and how any resulting benefits should be realized by customers.”
In a press release, the IURC welcomed comments from stakeholders and consumers.
