Customers of Wisconsin utilities are projected to save more than $275 million from the new lower rate for federal corporate taxes, based on estimates compiled by the Citizens Utility Board of Wisconsin and the Wisconsin Industrial Energy Group.
The corporate tax rate was lowered to 21% from 35% as part of the recent tax reform and tax cut legislation. Projected taxes are included as an expense when setting utility rates and the cost is passed onto customers.
The state’s utilities were required to file their projected tax savings with the Public Service Commission last month. Matthew Spencer, a spokesman for Public Service Commission, said the commission is expected to decide this year on how to apply the savings to customers’ bills.
Based on the PSC filings, the initial annual savings from the lower tax rates are:
- We Energies electric customer – $97 million
- We Energies natural gas customers — $20 million.
- WPS electric customers — $41 million.
- WPS natural gas customers — $7 million.
- Madison Gas & Electric — $6 million to $9 million for electric customers and $2 million to $3 million for natural gas customers (1.2% to 1.9% average reduction).
- Alliant electric customers — $40 million to $50 million
- Xcel electric customers — $25 million to $30 million.
The projected savings range roughly from 1% to 4% of customers’ bills, depending on the utility.