Avista says customers could collectively see a $50 million to $60 million annual benefit from federal tax reform.
However, company officials said Wednesday that the savings on individual customers’ bills won’t be known until later this year.
Corporate tax rates for the Spokane-based utility dropped from 35 percent to 21 percent effective Jan. 1, and savings from the lower taxes will get passed on to Avista customers in Washington, Idaho, and Oregon.
Washington customers could start seeing the tax benefit on their bills as early as May 1, when new electric and gas rates are expected to take effect. Avista has a pending rate case before the state’s Utilities and Transportation Commission. While the utility has asked the commission to calculate the tax benefit into the new rates, the decision is ultimately up to the three-member commission.
In Idaho, the state Public Utilities Commission has asked Avista to provide a report on expected tax savings by March 30. A decision on incorporating the savings into Idaho customers’ rates is expected later this year.
The anticipated annual savings is the result of both the lower federal tax rate and changes to Avista’s deferred tax liability related to depreciation costs. As the result of the depreciation changes, about $442 million will be returned to Avista customers over 35 years. (Spokesman-Review)
