Under the bill, the Public Utility Commission will lose the ability to adjust utility rates downward to reflect tax advantages enjoyed by electric utilities. As a result, utilities will gain the ability to charge customers an additional amount for federal income taxes — even in the absence of a greater tax liability by the utility.
In a guest editorial, the TCAP executive director draws attention to pending state legislation that would increase unfair tax collections by utility companies.
The financially beleaguered Energy Future Holdings has access to more than $500 million in “phantom taxes” paid by Oncor’s customers since 2008. EFH can access the money to stave off creditors.
TXU provides backup electric service for customers whose regular providers go bankrupt. But what if TXU itself goes bankrupt?