Wisconsin Utilities Ordered To Refund $130 Million To Customers
Looks like the Federal Tax cuts that went into effect last year will result in some refunds to Wisconsin utility customers. Regulators from the State of Wisconsin have ordered utility companies to refund $130 million back to their customers based on the new tax rates.
Before Congress passed the Federal Tax reforms last year, the corporate tax rate was 35%; this is the percent that utilities use to base their charged rates on. With the passage of the reform, the new rate is 21%. However, those same utility companies didn't adjust their charges, meaning that they've been collecting 14% more than they need from each individual customer.
The Wisconsin Public Service Commission voted 3-0 on Friday to give customers their share of $130 million in credit overcharges. At this point, it's unclear how the utilities will spread the refunds out, so it's unclear exactly what the difference will be for individuals.
The changes voted on last year reflect the most aggressive reforms in decades on the U.S. Tax system overseen by the Internal Revenue Service. Already taxpayers have seen reductions in their commitment due to the IRS, which has resulted in higher net "take-home" paychecks.