5.3. ERMUSR 12-15-2009 - Laserfiche WebLink

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Table 3 Net Taxes as Percent of Electric Operating Revenue, 2006 -Investor-Owned Utilities, by Region- fJumber of First Region Utilities Median Quartile Northeast ~ 29 4.3% 2.4% Atlantic 18 5.3% 4.0% East North Central 29 3.8% 3.4% East South Central 8 3.3% West North Central 12 4.5% 4.1 West South Central 11 3.7% 2.8% Mountain 1 NA. NA Pacific Northwest 5 3.6% Pacific Southwest 7 4.0% Total 122 4.2% 3.1 ° Quutiles not pro~~ded for fewer than 9 responses. Note: Hawaii is included in the toterls, but not in am• of the reb one Net Payments and Contributions as Percent of Electric Operating Revenue, 2006 Investor-Owned Systems by Region s.o~° o% 6.g% 5.g% a.o% 3.g% z.o°~ t.o% o.o% Third uartile 5.6% 6.9% 6.0% * 6.0% 5.1 NA * 5.9% 5.g% i The 34S utilities received $12.4 million in con- Yributions and sen~ices from the nnmicipalih~. This amount does not include any contributions or services for which the cit}' has been reim- bursed, either through direct billing or a trans- fer of fiords. Free or reduced cost office space and water are the major services provided, while operations and maintenance: legal ser- ~~ce, information technolobm,~ senrices, engineer- ing services and financial ser~~ce employees are the predominant type of employee contribu- tions received by the utility. The $12.4 mil- lion in free or reduced cost contributions and sen~ces pro~~ded by the municipalih to the utilih is subtracted from the 51,OSS.3 billion in pa} ments and contributions from the utility to state and local government. The result is 51,045.9 billion in net payments and contribu- tions by the 34S utilities in 2006. V. Summary of Amounts and Types of Payments & Contributions The study is based on a survey sent by APPA to all publicly owned utilities. The next two sections (sections V and VI) of the report summarize results for 348 public power utilities that completed the survey. (Excluded from the summaries are 34 `Tennessee Valley Authority distribution utilities, because these utilities' pa}~rnents and contributions are limited under the terms of their wholesale power contract with 'TVA. ) These 348 utilities made a total of just over $1.0 billion in patinrrents and contribu- tions to state and local government in 2006. As shown in Table 4, the overwhelming majority of pa}~rnents are pa}m~ents in lieu of taxes (also called transfers to the general fund). The second largest category is gross receipts taxes; these taxes are collected by the utility, included in the utility's operat- ing revenue and expense accounts, and remitted to the state or local government. In some states the gross receipts tax may be called a public utility tax or privilege tax. The number of utilities making each type of pa}>rrient or contribution is detailed in Table 5. VI. Methods Used To Determine Amount of Payments in Lieu of Taxes Payments in lieu of taxes are gen- erally thought of as payments to local government. However, some utilities, particularly those in Kentucky and ~A~ash- ington, make payments in lieu of taxes to the state government. Table 4 Net Payments & Contributions to State & Local Governments Amount Percent Millions of To al Payments in Lieu of Taxes ................................ ..............$711.5....... .......67.2% Gross Receipts Tax ............................................ .............. $166.2....... .......15.7% Other Taxes and Fees ....................................... .............. $126.7....... .......12.0% Free or Reduced Cost Electric Services ............ ................ $40.7....... .........3.8% Use of Employees ............................................. .................. $5.8....... .........0.5% Other, including Equipment and Materials ........ .................. $7.4....... .........0.7% Total $1,058.3 700.0% Less: Services & Contributions RECEIVED $12.4' by the Utility FROM the Municipality Net Payments & Contributions $1,045.9 '' t 42 American Public Power Associati°n ° 2009-10 Annual Directory & Statistical Report www.APPAnet.org NE Atl ENC ESC WNC WSC Mtn PNW PSW Region