New Mexico Customers Could Be the First to See Rate Reductions as a Result of Lower Corporate Tax
Tax Partner Roger Reigner was quoted in a Utility Dive story, “New Mexico customers could be the first to see rate reductions as a result of lower corporate tax.” The story examines an order by the New Mexico Public Regulation Commission (“PRC”) that effectively lowers electric rates for Public Service Co. of New Mexico (“PNM”) customers. Reigner is quoted saying, “The interesting question is what is going to happen to excess deferred taxes.” According to the story, “At a large utility company, the deferred tax balance could be as high as $10 billion… As utilities adjust their books to reflect the new corporate tax rate, those excesses are going to be made public, and commissions are going to follow up, Reigner said. As that happens, there is a good chance that commissions across the country will direct utilities to pay the excesses out to rate payers.”