FOLLOWING TAX LAW ENACTMENT, REP. JOHN KATKO URGES NEW YORK STATE PUBLIC SERVICE COMMISSION TO REVIEW IMPACT ON CONSUMER RATES
SYRACUSE, NEW YORK – U.S. Rep. John Katko (NY-24) this week called on the New York State Public Service Commission to examine the potential benefits of the Tax Cut and Jobs Act and to determine whether to pass along savings to ratepayers.
The Tax Cut and Jobs Act, which Rep. Katko supported in the House, substantially lowers the tax rate for utility companies. As such, many companies are passing these savings on to ratepayers and nationwide, Americans are beginning to see the benefits of the federal tax law in their monthly energy bills. Regulators in states such as Indiana, Montana, and Louisiana are evaluating the implications of the new tax law for customers. Today, Rep. Katko urged New York to do the same.
In his letter to the New York State Public Service Commission, Rep. Katko stated, “I write today to ask this Commission to review impacts of this legislation on New York energy companies, and to report on expected rate changes for customers in our state in the coming year. I am hopeful that the New York State Public Service Commission will work to ensure hardworking New Yorkers are able to enjoy the benefits of this legislation, and realize a net reduction in their monthly energy bill in the coming months.”
A copy of the letter can be found here and below.
Dear Mrs. Burgess:
The Tax Cut and Jobs Act, which was signed into law on December 22, 2017, made the first comprehensive reforms to our tax code in nearly three decades. I supported this legislation because I believe it will unleash the economic potential of our nation, expand opportunities for small businesses, allow employers to invest in our workforce, and ultimately result in higher wages and more take-home pay for my constituents in Central New York.
This legislation levels the playing field for American businesses, making them more competitive and putting American workers first. Accordingly, we have already seen vast economic investment in our nation’s workforce. Daily reports indicate that, as a direct result of this legislation, companies nationwide continue to distribute bonuses and increase wages and 401(k) contributions to employees.
Importantly, Americans are also beginning to see the benefits of this legislation in their monthly energy bill. Across the nation, utility companies have announced lower rates for customers. Just this week, Baltimore Gas and Electric announced its intention to pass $103 million in tax savings on to consumers. In doing so, it joins Pepco, Pacific Power, Rocky Mountain Power, and Commonwealth Edison Company (ComEd) in filing for rate decreases with their respective state utility commissions.
States such as Montana, Kentucky, Indiana, and Louisiana are all reviewing the potential tax savings of the legislation and will address rates accordingly. I write today to ask this Commission to review impacts of this legislation on New York energy companies, and to report on expected rate changes for customers in our state in the coming year. I am hopeful that the New York State Public Service Commission will work to ensure hardworking New Yorkers are able to enjoy the benefits of this legislation, and realize a net reduction in their monthly energy bill in the coming months.
While I recognize that heated rhetoric from both sides dominated the tax reform debate, I hope that we can find common ground and work to pass on the clear benefits of this law to New Yorkers. I look forward to hearing from you on this issue and welcome your feedback and suggestions.
Member of Congress
Congressman John Katko represents the 24th Congressional District of New York, which includes all of Onondaga, Cayuga, and Wayne Counties and the western portion of Oswego County. For more information visit https://katko.house.gov or www.facebook.com/RepJohnKatko.