Lower Electric Bills Expected With Federal Tax Overhaul
Customers of the Hawaiian Electric Companies, including Maui Electric could see lower electric bills as a result of the federal corporate income tax cut, according to a company announcement.
Company executives say changes to federal tax law will lower corporate rates from 35% to 21% starting this year.
That is expected to result in a lower tax bill for the company’s 460,000 customers with Hawaiian Electric, Maui Electric and Hawaiʽi Electric Light.
According to the announcement, state and federal taxes are included in the base electric rate and with a lower federal tax, the tax rate embedded in the bill will be reduced.
“We’re in the process of analyzing the impact of the tax overhaul but it’s pretty clear at this point
that this will benefit most customers,” said Tayne Sekimura, senior vice president and chief
financial officer of the Hawaiian Electric Companies. “We will work with our regulators and the
Consumer Advocate to determine the exact amount of the tax reduction and the best way to
pass on the savings.”
Any change in the base rate is subject to the approval of the Public Utilities Commission, which will also determine the timing of any change in rates.