Utility To Share Tax Savings With Customers
DES MOINES – Customers of MidAmerican Energy will benefit from the new tax law passed late last year through lower energy rates both now and in the future. Changes to the federal corporate income tax code lower the tax rate that MidAmerican Energy pays from 35 to 21 percent, which means customers will pay lower energy bills. In a filing with the Iowa Utilities Board yesterday, MidAmerican Energy proposed to return 100 percent of the savings from the income tax rate change to customers through lower bills. Iowa customers will get the savings, totaling $42 million for 2018, through a credit on monthly bills.
“We are proud to serve our customers every day by delivering reliable and affordable energy in a balanced and sustainable way,” said Adam Wright, president and CEO of MidAmerican Energy. “MidAmerican Energy realized savings from the lower corporate tax rate, and those savings will be passed on to our customers.”
In its IUB filing, MidAmerican Energy also proposed to use other tax-related benefits resulting from tax reform for the future to reduce the need for price increases. The company will create an account to capture these benefits which will reduce the size or need for a future rate case – fulfilling MidAmerican’s goal of keeping rates low well into the future.
The IUB issued an order on February 27 requiring rate-regulated utilities to file proposals detailing how they would provide customers with the benefits realized from the federal tax rate reduction. Under the proposal submitted by MidAmerican Energy, if approved by the IUB, customers will start to see savings beginning with their May monthly bill.
MidAmerican Energy has already received approval in Illinois to begin providing the tax benefits to customers in April, and will soon file plans with South Dakota regulators to return tax reduction benefits to its customers in that state as well.
About MidAmerican Energy Company
MidAmerican Energy Company is an energy provider serving 770,000 electric customers and 751,000 natural gas customers in Iowa, Illinois, Nebraska and South Dakota. It is headquartered in Des Moines, Iowa. Information about MidAmerican Energy is available at www.midamericanenergy.com and on company Twitter, Facebook and YouTube pages.