BOISE, Idaho — On Dec. 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which will lower federal income tax rates and modify certain federal income tax deductions for corporations. As the law goes into effect this year, Idaho Power will be working with state public utility regulators to determine the potential impact on customers.
“Idaho Power is committed to keeping customer rates among the lowest in the country while continuing to provide reliable, responsible energy,” said Darrel Anderson, President and Chief Executive Officer of Idaho Power.
There is not a one-size-fits-all solution for all utilities. Idaho Power is different from many utilities in that it uses a flow-through income tax accounting method that has long reduced income tax expenses and contributed to lower rates for customers.
“Since 2012, our efforts to control costs and grow income have allowed Idaho Power to return more than $121 million to Idaho customers through our revenue sharing mechanism,” Anderson added. “We will work closely with both of our state regulatory commissions to help ensure potential new cost reductions from these changes in income tax law will benefit our customers.”
The impact of the Tax Cuts and Jobs Act will take months to calculate. The method through which potential cost savings would be assigned to customers, including adjustments to customer rates or to regulatory mechanisms, will require approval from the Idaho and Oregon public utility commissions.
About Idaho Power:
Idaho Power, headquartered in Boise, Idaho, and locally operated since 1916, is an electric utility that employs more than 2,000 people who serve approximately 542,000 customers throughout a 24,000-square-mile area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its diverse generation portfolio, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest rates for electricity. IDACORP Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also headquartered in Boise, Idaho.