TOPEKA, Kan. (KSNW) – Black Hills Energy, Westar, and KCP&L are among the companies agreeing to lower their rates because of the tax cuts.
In December, Congress passed the Tax Cuts and Jobs Act of 2017. In addition to reducing the burden for the majority of taxpayers, the legislation also lowers the corporate tax rate from 35 percent to 21 percent. Since utility companies benefit directly from this rate decrease, Lt. Governor Jeff Colyer wrote to Kansas utility companies requesting they provide relief to Kansas utility consumers by sharing the savings.
“I am extremely encouraged by the response my letter has received from the Kansas utility community. Black Hills Energy, KCP&L and Westar understand, just as I do, how much energy costs affect every household in Kansas. I am pleased that they have agreed to pass these savings on to consumers,” said Lt. Governor Colyer.
In his response to Lt. Governor Colyer, Black Hills Energy General Manager, Jerry Watkins said, “Black Hills is [..] committed to working expeditiously with the Kansas Corporation Commission to develop a plan which provides customers the benefit of the corporate tax reduction in their rates.”
Mark Ruelle, President and CEO of Westar, added, “We agree with the KCC Staff and others that all these tax benefits should go to our customers,” said President and CEO of Westar Mark Ruelle.
The Lawrence Journal-World reports KCP&L expects to save up to $100 million a year, while Westar anticipates it will save about $65 million a year. Black Hills did not say how much it anticipates saving.