Evansville, Ind. – As a result of the newly enacted federal tax legislation, natural gas and electric customers of Vectren Energy Delivery (Vectren) will see lower electric and gas rates beginning this year. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. Today, the Indiana Utility Regulatory Commission (IURC) issued an order providing guidance on a process on how utilities can reflect in their rates and charges the effects of the recent reduction in federal tax rates. This guidance aligns with Vectren’s intention to request IURC authority to adjust rates and charges to begin providing the benefits of those tax reductions in the near term. If Vectren’s request is approved, the result will be lower energy bills for customers.
Initial estimates suggest that for Vectren electric customers the Federal tax reduction will reduce electric costs by $70 to $90 per year. In addition, Vectren customers who also have natural gas service will see an additional decrease between $20 to $35 on the gas portion of their energy bill.
“Customers’ bills include the cost of income taxes, and it only makes sense customers should directly benefit from this reduced cost resulting from the new, lower tax rate,†said Brad Ellsworth, president of Vectren Energy Delivery of Indiana – South. “We continue to work with our regulatory agencies to ensure that the impact of lower Federal taxes is passed on as quickly as possible.”
Revised rates reflecting the lower tax rate will require the approval of the IURC.
