Michigan regulators authorized seven utilities to pass along approximately $50.3 million in customer benefits for seven utilities as a result of the federal tax reform law, effective July 1.
The rate decisions by the Michigan Public Service Commission represent the first of three sets of rulings reflecting the impact of the federal tax overhaul. Subsequent decisions will address tax savings due ratepayers from Jan. 1 through June 30, and excess deferred taxes or bonus depreciation not yet accounted for, according to a news release by the PSC.
For residential customers consuming 500 kW per month, Alpena Power Resources Ltd. subsidiary Alpena Power Company will reduce rates $506,888 annually, or $1.52 per month.
DTE Energy Co. subsidiary DTE Gas Co. will reduce rates by $38.2 million, or a monthly decrease of $2.12 for the residential gas customer using 10,000 cubic feet per month.
WEC Energy Group Inc. subsidiary Michigan Gas Utilities Corp. will see an annual decrease of $2,432,814, or a monthly decrease of $1.24 for the average the residential gas customer using 10,000 cubic feet per month.
Residential gas customers of Northern States Power Co. who use an average of 100 therms per month will see a monthly decrease of 23 cents, or a reduction of $67,905, in 2018, and 26 cents, or a reduction of $8,905, in 2019. Northern States Power's electric segment will see a total reduction of $513,313, with the monthly decrease already accounted for in its previous rate case. Northern States Power is a subsidiary of Xcel Energy Inc.
SEMCO ENERGY Gas Company customers will see rate cuts reflecting credits of $5,978,884 and $564,717, or a monthly decrease of $1.74 for average residential customers using an average of 10,000 cubic feet per month.
Customers in WEC subsidiary Upper Michigan Energy Resources Corporation's Wisconsin Electric Power Corp. zone will see a base rate revenue requirement cut of $1,384,745, customers in the Wisconsin Public Service Company electric zone would see a reduction of $593,183 and customers in the natural gas Wisconsin Public Service rate zone would see a reduction of $27,083. Those reductions amount to a monthly decrease of $1.93 for the residential customer using an average of 500 kW per month.
Three companies had no rate revenue impact from the tax law: Detroit Renewable Energy LLC subsidiary Detroit Thermal, LLC's bill credits are not applicable because the revenue requirement is below the company's projected expenses; Presque Isle Electric & Gas Coop is exempt from paying federal income taxes for being a nonprofit; and Wisconsin Electric Power Co. adjusted the special contract it has with its only Michigan customer, the Tilden Mining Company L.C.
The commission will later announce its decision for CMS Energy Corp. subsidiary Consumers Energy Co., DTE Electric Co., American Electric Power Co. Inc. subsidiary Indiana Michigan Power Co. and Upper Peninsula Power Co.
