Power & Utilities Surge - Legislative update and impacts from potential tax rate increases

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August 13, 2020



Overview

In this podcast, Sal Montalbano (PwC US Power & Utilities Tax Leader), and Scott McCandless (PwC Principal, Washington National Tax Services), discuss tax proposals under new legislative efforts that will take place in the fall and the impacts those tax proposals would have on the power & utilities sector. A corporate tax rate increase hasn't happened in decades and the analysis will be different than what was done for the TCJA rate decrease. 

The accounting for the tax rate increase is complex.  Would accounting net against the existing regulatory liability?  Will there be new regulatory assets?  How soon would an unprotected regulatory asset be recovered vis-a-vis how quickly the unprotected EDT is being given back?  Would any of the rate increase be protected or will it all be unprotected?

Please reach out to Sal Montalbano with any questions.

Outline:

2:44 - Legislative discussion on Biden tax proposals

4:56 - What we are seeing from a tax rate standpoint

8:50 - How quickly do we expect legislation to move?

11:52 - Where would we be from a renewables extenders standpoint?

13:35 - Aspects of Biden proposals and impacts on Power & Utility companies from a rate making standpoint

22:43 - Minimum tax considerations from a GAAP and regulatory standpoint

 

*This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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Jonathan Swerling

US Tax Marketing Leader, PwC US

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