James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Clash Over Corporate Tax in North Carolina Utilities Commission
Author: James F. McDonough
Date: October 22, 2014
Key Contacts
Back
A decision by the North Carolina Utilities Commission has triggered internal protest that highlights a rift between Democrats and Republicans.
According to NewsObserver.com, the commission has ruled that the state’s utilities can continue to charge their customers for a corporate tax rate higher than the rate that they actually pay. This decision has introduced strong tensions between the commission’s Democratic minority – who controlled the commission for years – and a Republican majority recently put into place by Gov. Pat McCrory.
In a 4-3 decision, the commission ruled that North Carolina utilities can continue to charge consumers for a corporate income tax of 6.9 percent, despite the fact that the state’s corporate income tax was recently lowered to 5 percent by state legislature, the news source reported. Utility companies are allowed to pocket the difference.
“There is no set end to this over-collection, which will continue indefinitely each year until each utility’s next general rate case,” the commission’s three Democrats wrote in their dissent, according to the news source. “Even then, ratepayers will never be refunded the over-collected funds; the utilities have simply been afforded an unearned gain at the expense of North Carolina ratepayers.”
Utility Dive reported that the state’s utilities would be able to over-collect approximately $21 million per year based on the ruling. Ratepayers’ average electric bills would increase by about 1 percent and average natural gas bills would increase by between 3 and 4 percent.
The majority wrote in their decision that the amounts considered are too small to require a change, according to NewsObserver.com. Duke Energy Carolinas and Duke Energy Progress are two companies opting to pass the savings on to consumers. They noted, however, that their customers would likely only pay 9 cents more and 17 cents more per month extra, respectively.
- Practices: Tax and Trusts & Estates, Corporate Tax Planning, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.