COLUMBUS, OHIO (July 1, 2020) – The Public Utilities Commission of Ohio (PUCO) today adopted an unopposed agreement authorizing Vectren Energy Delivery of Ohio (Vectren) to establish a credit on natural gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates.
Vectren will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rates. The $6 million credit, including interest, will be passed back to customers through the end of 2021.
Vectren will return to customers normalized excess accumulated deferred income tax (EDIT), estimated by the utility to be $74.6 million, over an approximately 25-year period.
Vectren will credit customers non-normalized EDIT of $25.9 million over a six-year period.
Each Vectren residential customer is estimated to receive approximately $270 in total credit over the duration of the refunds.
The TCJA was signed into law on Dec. 22, 2017, which, among other things, reduced the federal corporate income tax rate from 35 to 21 percent, effective Jan. 1, 2018.
On Aug. 28, 2019, the Commission approved a stipulation in Case No. 18-298-GA-AIR that, among other things, acknowledged Vectren’s intent to refund to customers savings associated with the TCJA.
On Jan. 7, 2019, Vectren filed an application to adopt a new tariff to pass to customers the savings due to the TCJA.
On March 4, 2020, PUCO staff filed its review and recommendations.
On May 28, 2020, Vectren filed a stipulation and recommendation signed by Vectren, PUCO Staff and the Ohio Consumers’ Counsel that resolves all substantive issues in the case.
A copy of today’s finding and order can be found on the PUCO website www.PUCO.ohio.gov by clicking on the link to Documents and Rules, then Docketing Information System (DIS) and searching case 19-29-GA-ATA.