GRIMES, IA. – May 4, 2018 — Iowa natural gas customers served by Black Hills Energy will soon see the benefits of the federal Tax Cuts and Jobs Act rate reduction from 35% to 21%. In cooperation with the Office of Consumer Advocate (OCA), and after receiving approval from the Iowa Utilities Board (IUB), customers will begin seeing these benefits on their June bills.
The average residential customer is expected to see a total annual benefit of approximately $12.37 on their energy bills which was calculated using the rate structure approved by the IUB. The tax savings are calculated based on customer type and usage so the actual benefits received will vary by customer and continue each year until the next rate adjustment.
“The Tax Cuts and Jobs Act reduced the amount of corporate income taxes our company pays and we are passing those savings along to our customers,” said Tracy Peterson, Vice President of Iowa natural gas operations. “We appreciate the IUB working with us to quickly provide the benefits of the change in corporate tax rates to our customers on their energy bills and we will continue to work to provide Iowans with safe and affordable energy.”
The total amount of the cost-savings related to the corporate tax rate reduction for Iowa customers is $2.43 million.