Utility companies are expected to save millions due to the corporate tax rates being cut under the tax reform signed into effect by President Donald Trump.
As the Missouri Legislature continues debating over bills that would enact a number of utility reform measures, including rate caps and rate adjustment mechanisms, one of the major caveats in the proposed utility legislation would enact a quick return to customers from the new tax savings.
Several experts and analysts have estimated the reduction could be in the range of two to four percent. A motion filed by Ameren Missouri before the Missouri Public Service Commission on March 26th shows that the number could lean to the higher side of the spectrum.
The filings show the federal tax cut has resulted in approximately $133 million in savings to the company.
If that amount were refunded to customers, then it would result in a 4.86 percent rate cut to customers.