Changes to federal tax law will help continue our efforts toward making bills affordable for DTE Energy customers. The Tax Cuts and Jobs Act, which took effect in January, reduced the federal corporate tax rate from 35 percent to 21 percent, a savings of more than $200 million annually across DTE’s customer population.
Those savings are being refunded to customers through a sequence of three bill adjustments over the next year, with the first of the series, Credit A, appearing on bills in August. For residential customers, this means a reduction of about 3 percent to power supply and distribution rates. This price reduction reflects DTE’s reduced tax rate going forward, so savings will be based on each customer’s individual usage.
A second credit, Credit B, is expected to appear on bills in early 2019 pending approval by the Michigan Public Service Commission. This credit, which is also based on usage, will refund excess tax money collected between January and July 2018.
A third adjustment, Credit C, will be implemented in 2019 as part of DTE’s power supply and distribution rates and will refund any additional tax money, including deferred taxes. More details will be available in the coming months on Credits B and C. We’ll be sure to keep you updated.