Tax Adjustment for Gas Customers

Residential gas customer bill reductions of about $2.20 a month beginning in June through 2018.

UES residential gas customers will receive bill credits and other benefits beginning in June 2018 as a result of changes in federal corporate income tax rates.

UES will return all of its federal income tax savings to natural gas 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.

UES natural gas customers will receive bill credits totaling approximately $6.5 million over three years under a plan approved in May 2018 by the Arizona Corporation Commission.

Bill Credits

Some tax savings will be returned to natural gas customers as bill credits listed under “Delivery Services” on monthly bills. In 2018, UES will return $2.9 million to natural gas customers as bill credits.

Bill Credit Schedule
Credit period Per therm credit Residential monthly
bill credit*
2019 $0.0169 per therm $0.68
* This amount is based on average consumption of 40 therms per month.

Future Reductions in Bills

UES will gradually decrease bill credits for natural gas customers and defer a portion of tax savings that will be 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. In 2019 and 2020, UES will defer approximately $2.2 million for future bill reductions.

Plan of Administration

View the revised tax adjustment plan of administration.