Bill Introduced To Pass State Utilities' Tax Savings To Consumers
A California lawmaker has introduced a bill aiming to pass any savings to utilities from recent federal tax changes back to consumers.
Sen. Jerry Hill Thursday introduced SB 1028, which would require the Public Utilities Commission to adjust the rates charged by utilities like Pacific Gas and Electric so any tax savings would be passed along to customers.
Utilities stand to save money via the reduction in federal corporate taxes resulting from the federal House Resolution 1, which was signed into law in December.
Among its provisions, H.R. 1 lowers corporate taxes, increases the timeline for deducting equipment costs and exempts utilities from any limitations on deducting interest on loans, debt or credit.
In response, in a Jan. 16 letter to the utilities commission, Hill said, "With the recent changes to the federal tax structure ... California's investor-owned utilities are anticipated to receive untold savings.
"I urge you to ensure any savings are returned to California's ratepayers," Hill said.
The bill would affect utilities including Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric and some water companies.