Minnesota Power to save $24 million on taxes
Federal tax reform will save Minnesota Power nearly $24 million a year, the company said in a filing with the Public Utilities Commission last week. That could translate to savings for customers.
“The company proposes to use the net tax benefits from all tax changes as an offset to other regulated costs, to the extent Minnesota Power is able to earn its allowed (return on equity), and flow the remainder of the benefits to customers through a new tax rider,” the utility wrote.
As a prod to state legislators who will need to pass a tax bill of their own to line up state laws with the far-reaching federal reforms, Minnesota Power wrote: “Any changes to state corporate income or property taxes should also flow to customers.”
The PUC will ultimately decide how Minnesota Power gets to use its tax windfall, which is largely the result of the corporate tax rate falling from 35 to 21 percent.