Tax Adjustment for Electric Customers
UniSource is expediting the return of federal corporate income tax savings to electric customers to help cushion the economic impact of the coronavirus pandemic and nationwide increases in the cost of natural gas and wholesale power.
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 monthly bill credits for all customer classes.
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 received an $11 credit, while small commercial electric customers with typical usage received a credit of about $13.
Continuing Bill Credits
In January 2022, the Arizona Corporation Commission (ACC) approved UniSource’s requests to return all tax savings until the ACC resets the company’s electric rates and to credit customer bills with approximately $3.1 million of deferred tax savings that accrued between July l, 2020 and January 31, 2022.
Residential electric customers with average use of 852 kWh per month will continue to receive bill reductions of about $1.68 a month beginning in February 2022 and continuing through January 2024.
These tax savings will be returned to electric customers as bill credits listed under “Delivery Services” on monthly bills.
Plan of Administration
View the revised tax adjustment plan of administration.