Unexpected Benefits Coming From The Trump Tax Cuts

The Washington Examiner posted an article today about a recent policy change from the Federal Energy Regulatory Commission.

The article reports:

The Federal Energy Regulatory Commission (FERC) issued a proposed rulemaking that would require all publicly-owned utility companies that own transmission lines “to revise” their rates to account for the benefits they received under the tax reform package.

The tax reform bill passed last December cut the corporate tax rate from 35 percent to 21 percent beginning in 2018. A number of states’ energy commissions have already directed the utilities they regulate at the retail level to account for the changes and grant credits to ratepayers.

…FERC also issued a policy statement on Thursday that provided ratemaking guidance for all companies under FERC’s jurisdiction to account for the tax benefits they received. Those companies include public utilities, owners and operators of natural gas and oil pipelines.

FERC also acted on 46 show-cause investigations, directing certain public utilities whose transmission tariffs used a tax rate of 35 percent to reduce their tax rates to 21 percent, or show why they did not need to do so.

As much as I generally don’t like federal regulations, if that is what it takes to pass the tax savings of publicly-owned utility companies on to their customers, then I support the regulations.

 

Federal Regulations Are Creating Economic Hardship For People As Wages And Net Worth Are Declining

On October 29, a website called Renewable Energy World posted an article asking the question, “Are Environmental Regulations Causing US Utility Bills to Surge?”

The article points out:

U.S. electricity markets face years of higher prices as clean-air regulations shut more coal-fired power plants than earlier forecast, cutting supply and forcing producers to rely more on natural gas.

…Midcontinent Independent System Operator Inc., or MISO, which manages the electricity network that runs from Manitoba to Louisiana, expects its power reserves to fall short of targets by about 2,000 megawatts by 2016, with deficits mounting after that. Even with the shale boom that’s cut gas prices, power generated with the fuel costs $30 to $35 a megawatt-hour, compared with about $25 for coal, according to Brattle.(the Brattle Group, a Cambridge, Massachusetts-based consulting company).

Please note that this is the result of Environmental Protection Agency (EPA) regulations–not the result of any law passed by elected officials. The EPA is accountable to no one (except possibly the President) and does not have to worry about elections. The EPA does not have to deal with the consequences (intended or unintended) of its actions.

It is time for Americans to take their country back. We need to be a country where laws and regulations are made by people who are accountable to the voters. The only way to stop the runaway train of over regulation is to elect Congressmen (and a President) who respect the U.S. Constitution and are willing to abide by it. If we don’t take our representative republic back soon, we will never be able to take it back. We will have to explain to our children and our grandchildren how and why we gave up their freedom.