Trump tax cuts will likely save you money on electric, gas and phone bills

It’s highly likely you’ll get some cuts in your utility bills from the federal tax cuts that Congress and President Trump passed last month.

The Kansas Corporation Commission on Thursday ordered its staff and the state’s utilities to quantify the windfall from lower corporate taxes.

And the commission strongly indicated it will order those savings to be passed along to customers through lower rates for electricity and gas and lower phone bill assessments for the Kansas Universal Service Fund.

“The Commission finds it should open a general investigation to quantify the economic impacts of the new lower tax rates on Kansas utilities and where appropriate, direct that any cost savings be passed on to Kansas utility consumers and contributors to the KUSF,” the order said.

The KUSF is a charge on phone customers’ monthly bills that helps subsidize service for the poor and rural customers to ensure everyone can have a phone.

Westar energy spokeswoman Gina Penzig said the company estimates savings of about $65 million a year on taxes. That would knock about $3.50 a month off the electric bill of an average customer using 900 kilowatt hours of electricity, she said.

The Citizens’ Utility Ratepayer Board will review the estimates to make sure the full tax cut passes through to customers, said David Nickel, consumer counsel.

“When you reduce the cost of service, it should reduce the rates,” he said.

The commission order indicated that customer savings will be made retroactive to Jan. 1, the date the tax bill took effect. That could mean refunds on future bills in addition to permanent cuts.

“The Commission's intention here is not to materially impact regulated utilities' profitability, but rather, ensure that the affected utilities are neither positively nor negatively impacted by the passage of federal income tax reform,” the order said.

Westar issued a statement saying it agrees with the commission that the tax cuts are customers’ money and that the company will file for a rate reduction by early next month.

“We agree with the KCC Staff and others that all these tax benefits should go to our customers,” said Westar chief executive Mark Ruelle. “This application to update rates starts that process.”

The commission staff requested the rate investigation on Dec. 14, while Congress was working out the final details of a bill to cut corporate income tax.

The legislation passed on Dec. 20. Two days later it was signed into law by President Trump, who supported and claimed credit for the cuts.

The new law permanently cuts the income tax rate on corporate profits from 35 percent to 21 percent.

This story was originally published January 18, 2018 at 5:56 PM with the headline "Trump tax cuts will likely save you money on electric, gas and phone bills."