PROVIDENCE, RI- Governor Raimondo and Lieutenant Governor McKee are calling on National Grid to return to ratepayers $7.9 million of over-collections made after Congress passed a massive corporate tax cut. After Congress passed the 2017 Tax Cuts and Jobs Act, National Grid's federal corporate tax rate was reduced from 35 percent to 21 percent.
"This money belongs to Rhode Islanders, and National Grid needs to return every dollar to ratepayers-quickly," said Governor Gina M. Raimondo. "When President Trump and Congress decided to give corporations like National Grid a massive tax cut, I was concerned about the impact it would have on Rhode Islanders. While I'm pleased that National Grid has reduced their rate increase request in light of their tax cut going forward, they must also immediately reimburse ratepayers for these over-charges. Lt. Governor McKee was the first person to raise this issue earlier this year, and I applaud his work to advocate for ratepayers."
"I want to make it clear: We will not let nearly $8 million of energy rate relief fall through the cracks," said Lt. Governor McKee. "In January, my office made the first request for National Grid to reduce rates. I rallied support from the General Assembly with the help of Senator William Conley, Jr., Representative Brian Kennedy and Representative Kenneth Marshall who introduced resolutions calling for immediate reduction of rates. My office continues to intervene in proceedings at the Public Utilities Commission to ensure millions of dollars end up back in the pockets of hardworking Rhode Islanders. I thank Governor Raimondo for standing up for Rhode Island families and helping us deliver the rate relief consumers deserve."
A direct rebate is the simplest and most straightforward option to return these funds to ratepayers. Responding to pressure from the Raimondo Administration and advocates like Lt. Governor McKee, National Grid's rate case filing currently under review incorporates the lower federal tax.