Lower NV Energy consumer rates proposed to reflect tax reform
NV Energy announced Thursday its intention to lower customer rates by nearly $84 million as a result of the federal Tax Cuts and Jobs Act of 2017.
On Wednesday NV Energy submitted a request to the Public Utilities Commission of Nevada to allow for the reduction, which, if approved, would start in April.
The average northern Nevada single-family residential electric customer would see a reduction of $2.81 per month, or 3.19 percent, according to NV Energy. Southern Nevada single-family residential customer bill will be reduced by $4.08 per month, or 2.81 percent.
For those who receive their gas through NV Energy, the average northern Nevada single-family residential gas customer will see a reduction of $1.08 per month, or 2.72 percent. Carson City natural gas is supplied by Southwest Gas and not NV Energy.
NV Energy has asked the Public Utilities Commission of Nevada to allow these bill reductions to go into effect starting on April 1, 2018.
“The federal tax reform bill has resulted in a direct reduction in our tax obligations, and as opposed to waiting until the next general rate reviews, which are required by law every three years, passing these savings on now is simply the right thing to do,” said Paul Caudill, NV Energy Chief Executive Officer. “The prices our customers pay today are very competitive when compared to the regional and national markets. This opportunity is an important one in our commitment to keep prices low for another decade.”
Among other things, the Tax Cuts and Jobs Act of 2017 reduces the federal income tax rate paid by corporations from 35 percent to 21 percent.
In late December 2017, the PUCN ordered an annual rate reduction of $26.4 million for NV Energy’s southern Nevada customers that will go into effect on February 15, 2018. The reduction in expense related to the federal Tax Cuts and Jobs Act of 2017 is separate from the decrease ordered in December 2017.