In a joint letter dated January 9, 2018, state attorneys general and consumer advocates from 13 states (collectively, the State Advocates)1 urged the Federal Energy Regulatory Commission (Commission) to address the rate implications of Congress’ sweeping overhaul of the federal tax code that was signed into law on December 22, 2017. Among other changes, the Law to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act) reduced the marginal federal corporate income tax rate from 35 to 21 percent. The State Advocates challenged whether entities under the Commission’s purview are charging “just and reasonable” rates in light of the significant reduction in the federal corporate income tax rate.
Reed Smith Client Alerts
State attorneys general and consumer advocates from 13 states have asked the Federal Energy Regulatory Commission to initiate proceedings to address the effect of recent federal tax reform on jurisdictional rates.
Supreme endeavor: an analysis of major business cases accepted by the U.S. Supreme Court with opinions expected to be issued in the 2019-2020 term
16 October 2019