If their calculations are correct, you — if you are a typical residential customer in Michigan — should end up saving more than three-and-a-half bucks on your monthly electric bill from I&M thanks to the federal Tax Cut and Jobs Act.
Indiana Michigan Power reports today that regulatory commissions in both Michigan and Indiana have now incorporated savings generated by the federal Tax Cut and Jobs Act into the bills of their electrical customers.
The Michigan Public Service Commission (MPSC) approved bill credits this week totaling $8.7 million for Michigan customers. The bill credit resulting from the federal corporate tax cut will provide a savings of $3.64 per month for a typical residential customer who uses 1,000 kiloWatt hours of energy per month.
Indiana customers are seeing a savings of about $85 million in I&M rates related to the corporate tax cut. Savings for Indiana customers are included in new Indiana rates the Indiana Utility Regulatory Commission approved earlier this year as part of I&M’s Building the Future plan. The tax cut was one of the factors that enabled I&M to reduce its rate request from more than $250 million to less than $100 million.
In Michigan, the MPSC established a three-step process for the credits. The reduction approved this week will credit customers for the impact of the tax cut from September 1st going forward. In September, Michigan customers will receive pro-rated bills, and the full amount of the credit will show up in October billing statements. Two additional adjustments of lesser amounts connected to the corporate tax cut will be determined at a later date.
Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its 2,450 employees serve more than 593,900 customers. More than half of its generation is emission-free, including 2,278 MW of nuclear generation here in Michigan, 450 MW of purchased wind generation from Indiana, 22 MW of hydro generation in both states and approximately 15 MW of large-scale solar generation in both states. The company’s generation portfolio also includes 2,600 MW of coal-fueled generation in Indiana.
American Electric Power, based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to customers. AEP’s more than 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 219,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.4 million regulated customers in 11 states.
