The Kentucky Public Service Commission ordered for-profit utilities to track their savings under the new federal tax law that takes effect Jan. 1, 2018, according to a Dec. 28 news release.
The Kentucky commission ordered utilities in the state to track the savings so that they can pass them on to electric, gas and water customers. The corporate income tax rate will decline to 21% from 35% under the federal tax law enacted earlier in December.
"While the exact amount of the tax savings and resulting rate reductions cannot be determined with precision at this time, each of the [companies] should use its best estimate to determine the amount to be recorded … subject to review and adjustment as part of this case," the commission said.
Utilities affected by the commission's order include Duke Energy Kentucky Inc., Kentucky Power Co., Kentucky Utilities Co., Louisville Gas and Electric Co., Atmos Energy Corp., Delta Natural Gas Co. Inc., Columbia Natural Gas of Kentucky, Kentucky-American Water Co., and Water Service Corp. of Kentucky.