Federal tax credit adjustment to Idaho customer power bills

BOISE, Idaho (KIFI) — The Idaho Public Utilities Commission authorized Rocky Mountain Power to pass on savings from the federal Tax Cuts and Jobs Act of 2017 (TCJA) to customers beginning in 2018. The remaining $8.5 million of the deferred tax balance from the tax benefits will be fully returned to customers as of January 1, 2024.

As a result of the end of the TCJA savings, the company proposes to eliminate the credit currently being offered by Electric Service Schedule 197.

The proposed change to Electric Service Schedule 197 would increase the power bill of a typical residential customer by $1.43 per month and would take effect beginning January 1, 2024 upon approval from the Idaho Public Utilities Commission.

The federal Tax Cuts and Jobs Act of 2017 decreased the federal corporate tax rate from 35% to 21%, effective January 1, 2018. In response, the commission opened Case No. GNR-U-18-01 to investigate whether to adjust the rates of certain utilities so that the benefits from the reduced tax rate can pass to customers. As part of a stipulation between the company, commission staff and interveners in that case, Schedule 197 was developed to pass those benefits to customers.

In the company’s 2021 rate case, submitted under Case No. PAC-E-21-07, parties agreed, and the commission authorized with Order No. 35277, to refund the remaining $8.5 million of deferred tax over two years beginning January 1, 2022. Now that the balance has been fully returned to customers, the company proposed to eliminate the refund currently being offered through Electric Service Schedule 197.

Rocky Mountain Power said it understands the impact that price increases have on customers and will work to mitigate the impact of the TCJA credit change as much as possible.

The commission must approve the proposed changes before they can take effect.