Cozen O’Connor: Pa. Regulators Sizing up Tax-Cut Impact on Utility Rates

Pa. Regulators Sizing up Tax-Cut Impact on Utility Rates

Thursday, January 11, 2018

David Zambito, co-chair of Cozen O’Connor’s Utility, Environmental & Energy Practice Group, discusses the impact that federal tax reform may have on utility rates in the Central Penn Business Journal. Under state law, the Pennsylvania Public Utility Commission (PUC) is restricted from adjusting rates based on a single factor, such as tax expense. “Taxes may go down, but other expenses may go up,“ David states.  He continues that, while PUC staff initiated a proceeding on the topic, “it is still too early to say how the PUC will address the impact of the tax reform” and utilities may, on their own, reinvest savings on capital improvements to their systems. 

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