Federal Tax Credit for New Mexico Customers Approved
The New Mexico Public Regulation Commission (NMPRC) today approved El Paso Electric’s (EPE) filing to begin issuing a credit in bills to reflect the reduction of the federal tax rate for New Mexico customers. The federal tax credit will be reflected on customer bills beginning May 1, 2018.
EPE estimates the credit for the average residential New Mexico customer will range from $1.67 per month in the winter to $2.68 per month in the summer. The credit will appear as a line item adjustment on monthly bills.
EPE estimates that customers will see an annual reduction of approximately $4.9 million in base rates or a credit for all customers at 3.87 percent.
Additionally, EPE worked with the New Mexico Attorney General’s Office (NMAG) on the proposed reduction.
About the Tax Cuts and Jobs Act of 2017
The tax rate decrease, from 35% to 21% effective January 1, 2018, is included in the Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017.
About El Paso Electric
El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 418,900 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico.