Corporate tax cut could mean lower electric bills

The Maui News

Because of a federal corporate income tax cut, Hawaii electricity ratepayers could see lower electric bills, Hawaiian Electric Cos. announced.

The reduction brought corporate rates down from 35 to 21 percent starting this year, HECO said. And that’s expected to lower bills for Maui Electric, Hawaiian Electric and Hawaii Electric Light customers.

State and federal taxes are included in the base electric rate, and, with the lower federal tax, the tax rate imbedded in the bill will be reduced, HECO said.

“We’re in the process of analyzing the impact of the tax overhaul, but it’s pretty clear at this point that this will benefit most customers,” said Tayne Sekimura, HECO senior vice president and chief financial officer. “We will work with our regulators and the consumer advocate to determine the exact amount of the tax reduction and the best way to pass on the savings.”