Tax Adjustment Credit
Residential customers will receive bill reductions of approximately $1.60 a month through 2020 as a result of this credit.
TEP customers began receiving bill credits and other benefits in May 2018 to pass along savings that resulted from reduced federal corporate income tax rates.
TEP will return all of its federal income tax savings to customers through a combination of monthly bill credits for all customer classes and by using a portion of the savings to help reduce future requests for new rates.
Some tax savings will be returned to customers as bill credits listed under “Delivery Services” on monthly bills. In 2020, TEP will return approximately $18 million to customers as bill credits.
|Credit period||Per kilowatt hour (kWh) credit||Residential monthly
|* This amount is based on average consumption of 800 kWh per month.|
Future Reductions in Bills
TEP will gradually decrease bill credits and defer a portion of tax savings that will be help reduce the impact of any future increase in the company’s rates. These deferred savings will help offset the costs of equipment and improvements that provide service to customers today.