Massachusetts AG Petitioned Department of Public Utilities to Clarify and Reconsider Decision to Allow Utility Companies to Keep Federal Tax Cut Savings

MARCH 7, 2019

Massachusetts Attorney General Maura Healey filed a motion asking the Massachusetts Department of Public Utilities to clarify and reconsider its February 2019 decision to allow utility companies to keep federal tax savings that resulted from the Tax Cuts and Jobs Act (TCJA). Utility rates in Massachusetts for the first half of 2018 did not reflect the reduction of the federal corporate tax rate under the TCJA from 35 to 21 percent, resulting in an estimated $40 million windfall for utility companies. AG Healey’s motion notes that the Department of Public Utilities acknowledged it had the authority to order utility companies to return the tax savings to consumers, but ultimately decided “without explanation” not to do so.