January 18, 2018
LETTER TO PSC:
January 17, 2018
Michael Schmitt, Chairman
Robert Cicero, Vice Chairman
Talina Matthews, Commissioner
Kentucky Public Service Commission
211 Sower Blvd.
Frankfort, KY 40602-0615
SUBJECT: Request expedited review of Federal Tax Cuts and Jobs Act as applied to Kentucky Power can offer rate reductions to power customers
Dear Chairman Schmitt, Vice Chairman Cicero and Commissioner Matthews:
On behalf of our constituents in eastern Kentucky, we write this letter to urge you to take prompt action to resolve the review of Kentucky Power’s corporate taxes to reflect the recent reduction in the federal corporate income tax rate.
Our residents in eastern Kentucky are relying on you to adjust the company’s revenue requirements to reflect this federal corporate income tax reduction so that the utility may use the savings to lower rates for Kentucky Power’s customers.
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act into law. This law significantly cuts corporate taxes for utilities, including Kentucky Power, by reducing the federal corporate income tax rate from 35 to 21 percent.
As an investor-owned utility regulated by the Kentucky Public Service Commission, Kentucky Power is authorized to charge rates set by you and recover its operating costs from its customers. Federal income taxes is one such cost.
We believe a rapid decision from the commission on this matter is prudent as the winter months in eastern Kentucky are a particularly critical time for many residents. Reductions to the utilities’ Federal income taxes will allow the company to lower power rates and ease the financial strain on customers in Appalachia.
We urge you to please take the necessary steps for expeditious action to pass the benefits of the corporate tax cut onto eastern Kentucky families and businesses as soon as possible. They deserve fair and reasonable electric rates from the federal tax savings realized from the Tax Cuts and Jobs Act. Thank you for your time and consideration.
Rep. Jill York, Rep. Chris Fugate,Rep. Tim Couch, Rep. Larry Brown, Rep. David Hale, Rep. Dan Bentley, Rep. John Blanton, Rep. William S. Wells, Rep. Toby Herald