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HANDOUT AT MEETING - PROVIDED BY CHAIR DIETZ <br /> Tax cut could change utilityrates <br /> The old,higher rates resentatives. 35% is expected to <br /> were factored in when Utility regulators in many Old tax rate pre-file a bill <br /> deciding how much other states are doing similar later this week <br /> investigations,as rates across 21% for the upcom- <br /> companies could charge. the country have been set New taxrate ing legislative <br /> assuming the old corporate session. <br /> By MIKE HUGHLETT tax rate of 35 percent.That $200M Savings <br /> mike.hughlett@startribune.com rate has been lowered to 21 Amount passed down <br /> percent. Minnesota's to individual <br /> Minnesota regulators are Several Minnesota utili- utilities residential <br /> looking at passing down to ties have made filings with could save ratepayers will <br /> ratepayers some of the mil- the PUC over the past month be moderate <br /> lions of dollars in savings that that offer few hard numbers —i.e.,don't expect a windfall , <br /> regulated utilities would get on savings.However,savings on your electric bill. <br /> fromthenewfederaltaxcuts. could total around$200 mil- It's not substantial when <br /> The Minnesota Public lion,said Rep.Pat Garofalo, you break it down to individ- <br /> Utilities Commission(PUC) R Farmington, chairman of nal ratepayers'monthly bill," <br /> opened an investigation in the Minnesota House Job said DavidSpringe,executive <br /> late December on how the Growth and Energy Afford- director ofthe NationalAsso- <br /> 2017 Federal Tax Act affects ability Committee. ciation of State Utility Con- <br /> electric and natural gas utility The state Legislature must sumer Advocates."But it is a <br /> rates and services.The PUC pass a bill to make utility say- big number whenyou look at <br /> is scheduled Tuesday to hear Ings from the tax cut retroac- it in the aggregate." <br /> preliminary reviews of the tive to Jan.1,Garofalo said. The "vast majority of <br /> law's effects from utility rep- Rep.Nolan West,R-Blaine, See TAX RATES on D3 I. <br /> DOW 24,345.75 V 117'1.21 I S&P 500 2,648.94 V 113.19 I NASDAQ 6,967.53 V -3.78 I 10-YR T-NO' <br /> State rethinks utility rate <br /> 4 TAX RATES from IN builds up deferred taxes.The <br /> states"have begun some sort new tax law could allow utili- <br /> of process to return part or all ties to recognize deferred tax <br /> of those aggregate savings to expenses at a lower rate than <br /> ratepayers,Springe said. when they were incurred—an <br /> For most companies,say- issue regulators are also likely <br /> ings from the tax cuts would to address. <br /> simply be extra income they The Minnesota attorney <br /> could give back to sharehold- general's office,which advo- <br /> ers,invest in new equipment cates for ratepayers,hasn't <br /> or use for worker raises.But yet weighed in on the tax cuts <br /> since most utilities are monop- with the PUC. <br /> olies,theirincomeisregulated. "We anticipate filing <br /> Lower taxes could essentially comments that any savings <br /> give utilities a higher rate of utilities get from these cuts <br /> return than prescribed by should be passed on to rate- <br /> regulators. payers,"said Ben Wogsland, <br /> Plus, many utilities have a spokesman for the office. <br /> been using accelerated depre- <br /> elation for several years,which Mike Hughlett•612-673-7003 <br />