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Star-Telegram Backs Regulation Of REP Pricing For Failure To Pass On Tax Cut Savings

August 06,2018

The Fort Worth Star-Telegram in an editorial is supporting a proposal, which was exclusively first reported by, from Texas State Senator Kelly Hancock who has suggested that the failure of retail electric providers to make a "public commitment" to flow through to customers the savings on distribution fees charged to REPs from federal tax cuts, "would result in legislative action to clarify the regulatory scope of the Commission during the upcoming 86th Regular Session."

We would note Hancock's letter was specific to the pass-through of tax cut savings reflected in reduced regulated TDU rates charged to REPs, and did not opine on whether REPs' should reduce their rates as a result of REPs' own lower tax liability (apart from TDU rate savings).

The Star-Telegram editorial, however, goes further, saying customers should get a "big chunk" of the lower taxes paid by REPs themselves, not only the lower TDU rates

See the editorial here

Texas   Pricing  

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