In the US, National Grid of Rhode Island has reduced its energy base distribution rate proposal filed with the Rhode Island Public Utilities Commission (RIPUC) following the adoption of the Tax Cut and Jobs Act.
National Grid has reduced its electric and gas base distribution rate proposal by $25 million.
The RIPUC, as part of its review of National Grid’s base rate case filing, issued a data request on December 21 asking the Company to recalculate its proposal to reflect changes from the federal tax reform. National Grid has been examining how the legislation could benefit customers since the law passed last month and provided the new figures to the RIPUC last week.
According to a company statement, "National Grid initially requested an increase of more than $71 million to support operations and new initiatives in National Grid’s gas and electric business. The new proposal incorporates more than $19 million in tax savings. When coupled with other adjustments made during the recalculation the proposal comes in at approximately $45 million in total. The adjusted figures estimate a request for $27 million on the electric side and $18 million on the gas side."
The RIPUC is expected to review the utility’s final proposal over the next eight months. Any approved rates would not be effective until September 1, 2018 and will be announced after extensive community consultation.
In December, RIPUC had requested the National Grid to review its proposal in which it sought permission to increase energy tariffs. The energy tariff proposal was filed in November 2017 and is the utility’s first since 2012.
The proposal included increasing energy tariffs which would enable National Grid to raise $71 million to support daily operations and new initiatives.
Tim Horan, COO of National Grid, said: “Today’s announcement is a key indicator of how this new tax law can provide real benefits to National Grid’s customers.
“We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills.”
In addition to customers in Rhode Island, the new tax law will benefit the company’s customers in Massachusetts and New York.
Image credit: 123rf.