News Release      
  For Immediate Release: 12-21-17      
  Media Contact | Holly Ward      
  Direct | 602-542-3847      
  E-Mail |      
Commissioners Call for Federal Income Tax Reform Rate Reduction

PHOENIX — Following Wednesday’s passage of the federal tax overhaul legislation, Commissioner Justin Olson moved to address the impact of the tax reform on current utility rates.

“This legislation represents the most comprehensive federal tax legislation in over 30 years,” said Olson. “The changes affect every regulated utility that maintains a corporate tax liability as an element of its revenue requirement.”

The bill changes tax liability for corporations and pass-through business entities. Corporation Commissioners want to ensure swift action is taken by utility companies to make reductions to customer rates.

Commissioner Olson points out the Corporation Commission “has anticipated this legislation for several months.” Most notably, Commissioners voted for an adjustment provision within the recent APS rate case in the event of the passing of federal tax reform. In the recent December Open Meeting, the Commission approved two Commissioner Olson amendments that added similar provisions in two additional rate cases.

“I acknowledge it is a significant task to make these reductions to the rates of every utility that maintains recovery of federal tax in their revenue requirement,” writes Olson. “Still, it is imperative that this Commission and the regulated utilities work together to pass the tax savings onto the ratepayers.”

Commissioner Olson invited companies to submit any comments or proposals on the matter by January 20, 2018. He also requested Commission staff to schedule a workshop on the matter, followed by an Open Meeting before the Commissioners.

Corporation Commission staff formally opened a docket on this initiative today. Find the docket on our website and search docket number AU-00000A-17-0379. Read Commissioner Olson’s letter here:


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The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit