Vectren Corp.'s natural gas customers in Indiana would see a reduction in their bills beginning 2018 as a result of the federal tax reform, following guidance issued by state regulators.
The Indiana Utility Regulatory Commission on the same day issued an order that gives guidance on the adjustments that utilities can make to reflect the federal tax rate reduction on customer bills. Vectren intends to ask the commission to adjust rates and charges to provide customers with lower energy bills, according to a Feb. 16 news release.
The utility estimates customer bills to drop by $20 to $35 per year if the request is approved.
"Customers' bills include the cost of income taxes and it only makes sense customers should directly benefit from this reduced cost resulting from the new, lower tax rate," Vectren Energy Delivery of Indiana - North President Mike Roeder said. "We continue to work with our regulatory agencies to ensure that the impact of lower federal taxes is passed on as quickly as possible."