Black Hills Energy Wyoming electric customers will see $2.3 million benefit of lower corporate tax rate
RAPID CITY, SD. – July 27, 2020 — Wyoming electric customers located in the Northeast region (Upton, Osage, Newcastle and Colony) served by Black Hills Energy will see the benefits of the federal corporate income tax rate reduction from 35% to 21%. Black Hills Energy received final approval from the Wyoming Public Service Commission allowing the company to pass on to customers the benefits of the lower corporate tax rate. Customers will begin seeing these benefits on their August bills via a one-time credit for 2018, 2019 and 2020 with ongoing benefits in 2021 and beyond.
“The Tax Cuts and Jobs Act reduced the amount of corporate income taxes our company pay and we are passing those savings along to our customers,” said Marc Eyre, vice president of electric operations in South Dakota and Northeast Wyoming. “We appreciate the commission working with us to provide the benefits of the change in corporate tax rates to our customers on their electric energy bills and we will continue to work to provide our Wyoming customers with safe and affordable energy.”
The settlement agreement provides for the benefits of tax reform for 2018, 2019 and 2020 to be passed on to customers through a one-time credit on their August bill. The 3-year aggregate benefit for all customers is estimated at $2.3 million. For 2021, the settlement agreement authorized a reduction in monthly electric base rates for customers beginning January 1, 2021. This reduction will offer the electric residential customers an average reduction of $4.30 per month on their electric bill.
The average one-time refund paid to residential customers on August 1, based on the electric rate classification are as follows: Residential Service Rate $173, Residential Service – Total Electric Rate $235, Residential Total Electric Net Metering Rate $166, Residential Demand Service Rate $341.
The average one-time refund paid to commercial customers on August 1, based on the electric rate classification are as follows: General Service – No Demand Rate $178, General Service Demand Rate $679, General Service Large Rate $11,749, General Service Demand TE Rate $443, Traffic Signal Rate $249, Municipal Pumping Rate $4,527.