Hawaiian Electric customers to benefit from federal tax changes

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Expect money back from Hawaiian Electric, and your bill should be going down.

That’s because HECO is going to have to share its corporate tax windfall with customers.

The Public Utilities Commission worked to ensure HECO passes some of its savings on to you.

Instead of a jump of what could have been around $10 to $13, HECO customers could soon see a credit on their account, with the average resident saving around 76 cents a month.

“That may not seem like a lot to people, but think of where it could have been, and what the parties did to get it down this far,” said Randy Iwase, Public Utilities Commission chairman.

Iwase says an interim settlement was reached in November based on the old tax rate, “so effective Jan. 1 of 2018 to the effective date of the new rates, that period result in a credit.”

The new rate, according to Iwase, should be effective for the next two to three years. He says this could also affect rate cases for neighbor islands.

“We believe what is in this agreement provides a basis to govern as we move forward with the Maui Electric case,” he said.

Iwase says the same requirements will apply to Hawaii Electric Light Co. on Hawaii island, and those adjustments are being made.

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