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Information about the Tax Cuts and Jobs Act

Tax cuts and jobs act

We’re passing the savings from the federal corporate tax rate reduction on to our customers. Lower taxes lead to a lower cost of delivering energy, which means savings for you now and in the future. We estimate the total customer benefit to be approximately $35 to $40 million each year.

We’ve been working closely with state utility regulators to determine how these credits will reach our customers in a straightforward and timely manner.

Arkansas customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ October 2018 bills. A typical residential customer will receive a monthly refund of about $4.64 per month ending in the middle of May 2019.

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Arkansas customers is $8.2 million.

We filed for a reduction to the general rate schedule adjustment, or GRSA, to reflect the savings associated with the federal Tax Cuts and Jobs Act. These benefits first appeared on both gas and electric customers’ July 2018 bills. 

For Colorado gas customers, the GRSA decreased from 0.827% to -2.59%. For Colorado gas distribution customers, the GRSA decreased from 8.56% to 4.41%.

Iowa customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ June 2018 bills.

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Iowa customers is $2.43 million.

Kansas customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ January 2018 bills.

The average residential customer bill was credited $7.33 in January in addition to small credits to the gas system reliability surcharge and the cost of gas adjustment.

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Kansas customers is $1,718,203.

Nebraska customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ July 2018 bills. 

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Nebraska customers is $3,842,364. 

South Dakota customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ October 2018 bills. 

The settlement agreement provides for the benefits of tax reform for 2018 to be passed on to customers through a one-time credit on their October bill. The aggregate 2018 benefit for all customers is estimated at $7.7 million. For 2019, the settlement agreement authorizes an $8.9 million aggregate reduction in base rates for customers. This reduction will be reflected on customers’ monthly bills beginning in January 2019.

We requested approval on Nov. 20, 2018, from the Wyoming Public Service Commission for a decrease in rates to account for the effects of the Tax Cuts and Jobs Act. Electric customers served by Black Hills Energy in Cheyenne, Wyoming, will see the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent.

In all other areas of Wyoming, we're in the process of working with local commissions to determine the best way for our customers to receive these benefits.