Local Property Taxes on Energy Infrastructure
To provide greater transparency, property taxes will now appear as a separate line item on your bill.
Why Property Taxes Matter
Property taxes are part of the cost of delivering safe and reliable energy and are associated with infrastructure such as underground pipes, wires, and equipment that serve your home or business. We collect these costs from customers and pass them directly through to local governments without earning a profit.
These taxes have always been part of your energy bill but were historically included within the delivery charge. To provide greater transparency, property taxes will now appear as a separate line item on your bill.
1 To develop these service class-specific percentages, the Company relied on its embedded cost of service (ECOS) studies from the most recently approved electric and gas rate cases (i.e., Cases 25-E-0072 and 25-G-0073). The ECOS studies allocate property taxes, included in the Company’s delivery revenue requirements approved by the Commission, among customer service classes based on their respective share of electric and gas system infrastructure relied upon to provide service to customers. Resulting property tax allocation for each service class is then used to develop a ratio of their property tax cost responsibility to their delivery revenue targets established in the rate case.