Tax Adjustment for Electric Customers
UniSource will expedite the return of federal corporate income tax savings to electric customers in June 2020 to help cushion the economic impact of the coronavirus pandemic.
UniSource will provide electric customers with bill credits and other benefits beginning in June 2018 as a result of changes in federal corporate income tax rates. The company will return its entire federal income tax savings to electric customers through a combination of monthly bill credits for all customer classes and by using a portion of the savings to help reduce future requests for new rates.
In May 2020, the Arizona Corporation Commission (ACC) approved UniSource’s request to return deferred tax savings from Jan. 1, 2019 to June 30, 2020 through larger usage-based bill credits intended to assist customers affected by the pandemic. In June 2020, residential electric customers with typical usage will receive an $11 credit, while small commercial electric customers with typical usage will receive a credit of about $13.
Continuing Bill Credits
Residential electric customers with average use of 835 kWh per month will continue to receive bill reductions of about $0.84 a month beginning in July 2020 and continuing until the ACC resets the company's electric rates.
These tax savings will be returned to electric customers as bill credits listed under “Delivery Services” on monthly bills.
Future Reductions in Bills
UniSource will continue to defer a portion of tax savings that will be used to help reduce the impact of any future increase in the company’s rates. These deferred savings will help offset the costs of equipment and improvements that provide service to customers today.