Gov. John Bel Edwards is asking the Louisiana Public Service Commission (PSC) to consider reducing utility rates in light of a recent reduction in the federal corporate income tax rate.
The governor on Wednesday sent a letter to PSC commissioners asking them to review the recently signed federal “Tax Cut and Jobs Act” to see where savings might be passed along to Louisiana ratepayers.
The governor wrote:
“Just today, Dominion Energy announced that it plans an average rate reduction of five percent for customers in South Carolina thanks in part to lower corporate taxes under the new federal tax law. We hope to hear similar news from Louisiana companies as they carefully review the impact of the federal tax legislation on their bottom lines.”
The PSC sets utility rates based on a number of factors, including federal income tax rates. Given the reduction in federal corporate income tax rates from 35% to 21% in the new tax law, some Louisiana utility rates may merit a reduction, the governor told PSC commissioners.