Entergy Louisiana estimates a savings of up to $100 million annually as a result of the federal tax cuts enacted by Congress last month, Public Service Commissioner Foster Campbell said.
“That money will translate into lower rates for Entergy Louisiana customers,” Campbell said.
Taxes paid to the federal government are a cost of doing business that helps determine electric rates charged by investor-owned utilities like Entergy.
Campbell said the Louisiana Public Service Commission has asked Entergy and other utilities to calculate their estimated savings from the Tax Cuts and Jobs Act, approved by Congress in December. The affected utilities, in addition to Entergy Louisiana, include SWEPCO, Cleco Power, CenterPoint Energy and Atmos Energy.
Effective this year, these companies will see their federal tax rate reduced from 35 percent to 21 percent.
“Many of these companies operate under annual rate reviews,” Campbell said. “That allows the LPSC to ensure that the benefits of these tax cuts are shared promptly with Louisiana consumers.”
Discussion of the federal tax cuts and their impact on Louisiana utilities is expected at the LPSC’s January 31 meeting in Baton Rouge.