Tax Adjustment for Gas Customers
UniSource will expedite the return of federal corporate income tax savings to gas customers in June 2020 to help cushion the economic impact of the coronavirus pandemic.
UniSource will provide gas customers with bill credits and other benefits beginning in June 2018 as a result of changes in federal corporate income tax rates. The company planned to return its entire 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.
However, 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 gas customers with typical usage will receive a $6 credit, while small commercial gas customers with typical usage will receive a credit of about $63.
UniSource will no longer defer a portion of its federal income tax savings. Instead, the company will return all of its federal income tax savings to gas customers through monthly bill credits for all customer classes.
Continuing Bill Credits
Residential gas customers with average use of about 40 therms per month will continue to receive bill reductions of about $0.41 a month beginning in July 2020 and continuing until the ACC resets the company's gas rates.
These tax savings will be returned to natural gas customers as bill credits listed under “Delivery Services” on monthly bills.