CHICAGO (Legal Newsline) — Illinois Attorney General Lisa Madigan announced Jan. 23 that her office will immediately push for state utility companies to pass on savings from the new federal tax law to consumers.
On Jan. 1, the federal corporate income tax rate was cut from 35 percent 21 percent. Madigan believes utility companies affected by this tax cut should begin to reduce their customers’ bills. According to Madigan, regulated utility rates should reflect actual costs incurred by the company. Because the companies saw a reduction in taxes, they should institute reductions in prices.
“The new corporate tax benefits are already growing for Illinois’ utility companies,” Madigan said in a statement. “Utility rates build in costs, and lower utility taxes should reduce rates and save customers immediately.”
Madigan began her effort to help utility company consumers by filing motions with the Illinois Commerce Commission, seeking to reduce pending rate requests by two utility companies in the state.
Madigan’s office noted that she had previously joined a coalition of states that urged the Federal Energy Regulatory Commission to reduce interstate transmission rates.