With today’s Florida Public Service Commission (PSC) vote, Florida Public Utilities Company (FPUC) and its related divisions will return almost $1.6 million in savings to customers from its Gas Reliability Infrastructure Programs as a result of the Tax Cuts and Jobs Act of 2017 (TCJA).
Today, the PSC decided TCJA impacts for FPUC and its separate divisions in Indiantown and Fort Meade, as well as the Florida Division of Chesapeake Utilities Corporation. FPUC is a wholly owned subsidiary of Chesapeake Utilities Corporation.
Because all of these gas utilities are earning below the bottom of their authorized range of return, all retained some savings from the 35 percent to 21 percent TCJA tax reduction. The savings will be used for capital improvements and will delay expensive rate case proceedings.
FPUC will retain $1,678,308 in overall tax savings, FPUC-Indiantown will retain $7,862, FPUC-Fort Meade will retain $6,375, and Chesapeake will retain $880,179.
Because of the federal tax law changes, the PSC has ensured that Florida customers directly benefit from the savings. The Commission has either issued a final order on the TCJA issues or has hearings scheduled to resolve TCJA issues for all electric and natural gas utilities. Commission staff has also held informal meetings regarding the Act’s impacts for water and wastewater utilities and expects to finalize associated issues this year.
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