Cleco looking into how to save customers money following federal tax reform
PINEVILLE - Cleco says savings related to the recent federal tax reform will allow them to help their customers save money.
According to the energy company, the Tax Cuts and Jobs Act reduced that amount of federal income tax they will have to pay. The federal corporate tax rate dropped from 35 percent to 21 percent. Officials within the company said this will allow them to help their customers financially.
"Since January 1, Cleco has been accruing the money collected from customers due to the change in the tax law with the expectation that it will be returned to customers," Cleco CFO Terry Taylor said. "In our ongoing commitment to customer affordability, we are working closely with the Louisiana Public Service Commission on how the tax changes will be reflected in customer rates.
The LPSC as directed utilities companies, including Cleco, to provide their recommendations by March 21, 2019, as to how the tax benefits will be flowed through.
"In an effort to promptly provide our customers with the benefits of the federal tax reduction, Cleco will deliver a plan to the LPSC outlining customer savings," Taylor said. "We have anticipated these savings and are prepared to pass them along to our customers at the direction of the LPSC."
Cleco services about 288,000 customers in Louisiana.