Customers of Colorado-Based Excel Will Benefit From Savings In Federal Tax Cut

The bills when it comes to natural gas will be cut down by Xcel Energy Inc. therefore the company will be able to save around $20 billion thanks to the latest federal tax reform law. The new law states that corporate taxes in Colorado will move down to 21 per cent instead of 35 per cent. It is a good time for businesses to apply for a Co Tax ID because of the savings they will have compared to other states.

Xcel has approximately 1.4 million customers relying on natural gas within the states. In 2017, the energy company requested the approval of the Colorado Public Utilities Commission to spread the $139 million increase for the rates of natural gas within a period of three years.

Xcel planned to have the increase in order to earn back the capital investment they have made to their delivery system of natural gas. This includes various operations such as removing steel pipes and plastic covering 350 miles as well as cast iron pipes that are already useless.

The request is still waiting to be processed by the PUC while the temporary rates were imposed on the first day of January 2018.

Before the year ended, President Donald Trump has approved the new tax reform bill thus the state regulators from Colorado as well as all over the nation are urging utility companies to forward their savings from the federal taxes to their loyal customers.

Each of the customers might not have much in terms of savings but when counting the entire state the amount could reach up to millions.

The rates are set to fund the costs of the utility which includes their bills from federal tax. The lower the bill because of the tax rate, the lower the amount the utility company needs to gather from their customers.

Businesses with Co Tax ID will be able to feel the impact of the federal taxes soon and in a good way. This is why those in authority are suggesting that companies should pass on their savings to their customers in order to give back.