Like it or not, the US Federal Tax Code’s tentacles wind up in nearly all aspects of our daily lives. I suppose if the Tax Code considers how many children you have, it isn’t far-fetched that it might also impact utilities like PNM.
As the New Mexico PRC considers the PNM rate case (more here) also called the Revised Stipulated Agreement (RSA) The proposed corporate tax reduction from 35% rate to 20% that is contained in the federal tax reform bill will directly offset rate increases imposed on 500,000 PNM customers.
Passage of the GOP tax package and corresponding language in the RSA allows for the mitigation of consumer utility costs to the tune of FIFTY MILLION DOLLARS. The fact that this is in the RSA shows incredible attention to detail and that no stone is being left unturned in the effort to get the best deal for New Mexico rate-payers.
In addition to favorable tax language the RSA has been approved by PRC staff, at the Attorney General of New Mexico and environmental groups including Sierra Club, WRA, and CCAE. A favorable RSA vote is a vote for compromise, cooperation and collaboration.
While the left often portrays corporate taxes as somehow being borne by companies alone, the reality is that all taxes are borne by the consumer. Nowhere is that more clear than in PNM’s RSA. It is time for New Mexico’s PRC to adopt the best plan available for New Mexico utility consumers and it’s time for Congress to make America’s corporate tax rate competitive on a global basis.