The Maine Public Utilities Commission has issued a final order in the distribution base rate case of Northern Utilities Inc. that will, as a result of the recent federal tax overhaul, reduce annual revenues.
In an order issued Feb. 28, the PUC approved an order that will result in a revenue decrease of $87,243. Prior to incorporating the impact of the tax overhaul, the rate order would have increased revenues by $2,072,647, according to a March 6 filing.
The commission also approved as part of the order a 9.5% return on equity, a capital structure reflecting 50% equity and 50% long-term debt, and the inclusion in the rate base investments related to the Targeted Area Buildout Program in Saco, Maine. The order includes approval for cost recovery of Northern Utilities' targeted infrastructure adjustment program as well.
In May 2017, Northern Utilities filed for a $6 million gas rate increase premised upon a 10.3% ROE and an 8.3% return on a year-end valued at $176 million for a calendar 2016 test year. The new rates are effective March 1.
Northern Utilities is a Unitil Corp. gas utility.
