RAPID CITY, S.D. – Sept 5, 2018 — South Dakota customers served by Black Hills Energy will see the benefits of the federal corporate income tax rate reduction from 35% to 21%. Black Hills Energy received final approval from the South Dakota Public Utilities Commission allowing the company to pass on to customers the benefits of the lower corporate tax rate. Customers will begin seeing these benefits on their October bills via a one-time credit for 2018, with ongoing benefits in 2019 and beyond.
“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,”
“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 Nick Gardner, vice president of electric operations in South Dakota. “We appreciate the commission 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 South Dakotans with safe and affordable energy.”
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.