Federal Tax Law Investigation
The new federal law reduced the corporate tax rate for most investor-owned utilities from 35 percent to 21 percent. Utilities that pay federal income taxes may recover them through rates on a dollar-for-dollar basis.
The OUCC is participating on behalf of Indiana consumers. All rate-regulated, investor-owned utilities are parties to the case. Municipal and not-for-profit utility rates are not at issue.
The investigation has two phases:
- Immediate rate relief
- Longer term tax issues
PHASE ONE: IMMEDIATE RATE RELIEF
Rates for most Indiana utilities have decreased to reflect the federal corporate income tax reduction utilities received on January 1, 2018. More specifically, tariffs have been adjusted to reflect the new 21 percent rate.
PHASE TWO: LONGER TERM TAX ISSUES
The case's second phase is examining longer term issues including customer credits for rates collected at the 35-percent tax rate since January 1, 2018 and deferred income tax accounting matters.
Each utility's Phase Two issues are being considered in separate subdockets, with links to each case file below. The OUCC has filed testimony in most of the subdockets, with evidentiary hearings to be held in the coming weeks.
Indianapolis Power & Light (IPL)
Phase One: A settlement agreement has received IURC approval.
Additional info: OUCC Testimony | Case File
Phase Two: All issues are being addressed in the utility's pending rate case. A settlement agreement in the rate case has been filed with the Commission.
Northern Indiana Public Service Company (NIPSCO)
Phase One: Approved Tariff
Phase Two: The Commission has granted NIPSCO's motion to hold the case in abeyance. Phase Two issues are likely to be handled in a rate case to be filed on or after October 31, 2018.
NATURAL GAS - LARGE UTILITIES
Citizens Gas is not a respondent as it is not an investor-owned utility.
NATURAL GAS - SMALL UTILITIES
Citizens Gas of Westfield has been dismissed from the case.
Switzerland County Natural Gas: The utility's proposed revised tariff has been denied.
WATER/WASTEWATER - LARGE UTILITIES
Phase One Approved Tariffs: Aboite Wastewater, Darlington, Lake County Sewer, Lake County Water, Sani Tech, South Haven, Southern Hills, Southeastern, Wedgewood Park, Wildwood, White Oak, Wymberly
South Haven: Pending Settlement Agreement | OUCC Testimony | Case File
All Other Territories: Pending Settlement Agreement | OUCC Testimony | Case File
Citizens Water/Wastewater is not a respondent as it is not an investor-owned utility.
WATER/WASTEWATER - SMALL UTILITIES
The Citizens Energy Group utilities serving Westfield have been dismissed from the case.
Other Small Water/Wastewater Utilities
The OUCC did not object to proposed tariffs from Devon Woods Sewer Utility and Howard County Utilities.
The OUCC did not object to dismissal requests from the following: Apple Valley Utilities, Bluffs Basin Utility, Doe Creek Sewer Utility, JLB Development, Kingsbury Utilities, Pioneer Water, Pleasantview Utilities, Wastewater One, and Webster Development.
All publicly filed documents in both phases of the investigation are available from the IURC's website.
This page will be updated based on case developments.