Black Hills says will deliver tax reform benefits to Arkansas utility customers
Black Hills Corp. announced that its Arkansas gas utility subsidiary, Black Hills Energy, will provide federal income tax reform benefits, resulting from the December 2017 passage of the federal Tax Cuts and Jobs Act, to its customers in Arkansas commencing Oct. 15, 2018. The Arkansas Public Service Commission on Sept. 26, 2018, approved Black Hills Energy's request to pass along the benefits to customers of a lower corporate federal income tax rate, which was reduced from 35% to 21% beginning Jan. 1, 2018. The commission approved the company's request to refund $8.2M of tax reform benefits accumulated from Jan. 1 through Oct. 15, 2018, to utility customers through a monthly credit to their bills beginning in mid-October and continuing through May 2019. For periods after October 15, 2018, the benefits of the reduced federal income tax rate will be included in customer rates. Those benefits will total approximately $1.5M for the period October 15 to December 31, 2018 and approximately $6.2M per year thereafter.