§ 16-108.21 — Accelerated repayment of excess deferred income tax

Illinois § 16-108.21

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 220: UTILITIES
• Act 220 ILCS 5/: Public Utilities Act.
• Art.: Article XVI - Electric Service Customer Choice And Rate Relief Law Of 1997

Text

(a) The General Assembly finds: (1) That a portion of each utility's compensation from ratepayers is attributable to reimbursement for federal taxes paid by the utility. (2) Due to the enactment of the 2017 Tax Cut and Jobs Act, the federal income tax rate for corporations was lowered, resulting in excess deferred income tax for distribution utilities in the State that serve more than 100,000 customers. (3) In proceedings before the Commission, it was determined that the repayment period to ratepayers by the utilities which serve more than 100,000 customers in this State for this excess deferred income tax would be 39.5 years. (4) The COVID-19 pandemic has harmed many customers of all rate classes in the State, and resulted in the Commission adopting a number of measures to provide relief for customers. (5) It would be in the interest of the State for the repayment of the excess deferred income tax referenced in Commission Dockets 19-0436, 19-0387, 20-0381, and 20-0393 to be paid back to ratepayers on a timetable greatly accelerated from that set forth in the dockets. (b) Notwithstanding the Commission Orders in Dockets 19-0436, 19-0387, 20-0381, and 20-0382, the excess deferred income tax referenced in those dockets shall be fully refunded to ratepayers by the respective utilities no later than December 31, 2025. (c) The Commission shall initiate a docket to provide for the refunding of these excess deferred income taxes to ratepayers of the utilities referenced in those dockets, and shall set forth any necessary provisions to accomplish the reimbursement on the schedule delineated in subsection (b).

Legislative History

(Source: P.A. 102-662, eff. 9-15-21.)