fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Don’t Forget, Trump’s Tax Cuts Brought Down Your Electricity Bill

Despite what its detractors say, the Tax Cuts and Jobs Act passed last year has been an unqualified success. Unemployment is at its lowest rate since 1969, wages are rising in critical industries like manufacturing, and we now have a situation where employers are struggling to find employees, not unemployed people struggling to find jobs.

Economic gains were part of the sales pitch for the tax cuts, but Minnesotans have also experienced a host of unexpected benefits from them, including refunds from electric utilities.

Because the tax cuts reduced the corporate tax income tax rate from 35 percent to 21 percent, Xcel Energy had $136 million in tax savings that are being passed on directly to its customers.

According to the Strib, Xcel’s average residential electricity customer — someone who pays $85 to $90 per month — will get a refund of about $45 as a one-time bill credit. The company’s average residential gas customer — who pays around $48 a month — will get a one-time bill credit of about $8. Xcel said it expects the refunds will be made by year’s end.

Don’t forget, electric utilities aren’t really private companies, they are government approved monopolies, meaning they are guaranteed to make profits, even when they make poor investment decisions like replacing existing, affordable power plants with more expensive and less efficient sources of electricity.

“It’s money ratepayers paid that they should not have had to pay,” said Dan Lipschultz, a member of the Minnesota Public Utilities Commission (PUC).

So the next time you hear someone say they didn’t personally benefit from the tax cuts bill, you can point to at least one concrete example of how they saved about 4.4 percent on their electric bills directly because of the tax cuts.

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota Breakfast Series Featuring Isaac Orr

    Location: The Oaks at Eagle Creek 1000 26th Ave NE Willmar, MN 56201

    Please join Center of the American Experiment on Tuesday, August 27th at The Oaks at Eagle Creek for breakfast with Center policy fellow and energy expert, Isaac Orr. Following his discussion of his new report, Doubling Down on Failure: How a 50 Percent by 2030 Renewable Energy Standard Would Cost Minnesota $80.2 Billion, Isaac will be joined by Rep. Tim Miller, Rep. Dave Baker, and Sen. Andrew Lang for a conversation about renewable energy standards in Minnesota. Tuesday, August 27, 2019 The Oaks at Eagle Creek 1000 26th Ave NE, Willmar, MN 56201 7:30 AM Breakfast & Check-In 8:00 AM Presentation…

  • Fall Briefing Featuring Kimberley Strassel

    Location: Ordway Center for the Performing Arts 345 Washington Street, St. Paul, MN 55102

    Purchase Tickets Here

    Register Now