(Missourinet) – Ameren Missouri is the first of the two largest utilities in the state to drop customer rates based on savings it’s receiving from a tax reduction.
Congress cut the nation’s corporate income tax rate from 35%-to-21% last December with the reduction taking effect January 1st. Ameren’s drop of customer rates to reflect its savings from the tax reduction started Wednesday.
The decrease is being implemented as part of far-reaching utility legislation passed this year in Jefferson City. Ameren says the drop of customer rates totals $167 million per year and will average out to $6.00 per month for residential customers. By comparison, Kansas City Power & Light (KCP&L) will pass its $67.5 million in corporate tax cut savings along to customers in either November or December. It’s involved in rate cases with the state’s Public Service Commission that’ll incorporate those savings when complete. But the likely end results for KCP&L customers will be no change or a possible increase in rates because of upgrades the utility is proposing to make.
Spokesperson Jeremy McNieve says the savings from the corporate tax cut will be used instead to finance a new customer information system, an expansion of KCP&L’s electric vehicle charging program and the creation of a renewable energy and solar subscription program. Ameren serves 1.2 million electric customers while KCP&L has 800,000.
