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APS secures approval to pass additional tax cut savings to ratepayers

Arizona Public Service Co. on March 13 received approval from Arizona Corporation Commission to implement the second phase of its federal tax adjustment.

For phase II, the Pinnacle West Capital Corp. subsidiary proposed to refund an additional $86.5 million of savings from the 2017 federal tax overhaul on its excess deferred income taxes. APS plans to refund these savings over an accelerated 12-month period beginning in April. This refund will result in a bill decrease of approximately $3.35 for a residential customer using 1,100 kWh per month.

For phase I, the utility will replace its existing tax expense adjustor mechanism bill credit with a modified rate, resulting in a bill increase of approximately 80 cents for a residential customer using the average amount of electricity.

APS proposed combining the two bill credits as a single item on customer monthly bills, which will result in an approximate $2.55 bill decrease per month for a residential customer using 1,100 kWh on average.

The company said the approval of the second reduction brings the total customer benefit from the tax overhaul to $200 million. (ACC Docket No. E-01345A-18-0003)