The chart
below shows the largest US Utility Corps with either stock market caps above $5 Bil or for private companies Book Value of Stockholders Equity above $5 Bil.
This chart
also shows the amount of money ($101 Bil) these US Utility Corps Owe Their
Utility Customers because these Utility Customers have overpaid their monthly
utility bills for perhaps the last 30 years.
Clearly the
Utility Corps agree that they now owe this $101 Bil because it is on their audited
Dec 31, 2017 Balance Sheet as a non-interest bearing liability owed to their Utility Customer over perhaps
the next 30 years.
Many of the Utility
Customers who have overpaid this $101 Bil over the last 30 years have already
died or will die during the next 30 years before they receive their full portion of
this $101 Bil.
Instead, the
entire $101 Bil will be paid to Future Utility Customers.
Why is there
this injustice?
Because the
Trump Tax Cuts Act dictates that this $101 Bil cannot be refunded immediately
to the Utility customers clearly owed.
This is not
right, not even close to being right.
And this effects US citizens and US businesses in every US State.
Included in the below chart are the US Utility subsidiaries of one Canadian Company Fortis Inc.
Excluded from the below chart is the huge London, UK-based National Grid plc, which has a huge US
Utility presence. It has not yet
reported these amounts owed to the US SEC.
Nearly all
of the below Utility Corps have a US Utility presence in many US States. Let me mention just a few of these US Utility Subsidiaries:
· Duke Energy has regulated utility
operations in North Carolina, South Carolina, Florida, Indiana, Ohio, Kentucky
and Tennessee
· Southern Co has regulated utility
operations in Georgia, Alabama, Florida and Mississippi
· Chicago-based Exelon Corp has
regulated utility operation in Illinois, Pennsylvania, Maryland, Washington DC,
New Jersey and Delaware
· American Electric Power has regulated
utility operations in Ohio, Virginia, West Virginia, Indiana, Oklahoma, Texas
and Louisiana
· Allentown, PA-based PPL Corp has
regulated utility operations in Pennsylvania and Kentucky
· Eversource Energy has regulated
utility operations in Massachusetts, Connecticut and New Hampshire
· Entergy Corp has regulated utility
operations in Louisiana, Arkansas, Mississippi, and Texas
· Berkshire Hathaway Energy has regulated
utility operations in Iowa, Oregon and Nevada
· Fortis Inc has US regulated utility operations
in Arizona and Michigan
· Xcel Energy has regulated utility
operations in Minnesota, Colorado, Texas and Wisconsin
· Ameren has US regulated utility
operations in Illinois and Missouri
· Alliant Energy has regulated utility
operations in Wisconsin and Iowa
· Avangrid has regulated utility
operations in Connecticut and Massachusetts
· London, UK-based National Grid has regulated
US utility operations in New York, Massachusetts, New Hampshire, Rhode Island
and Vermont
Further,
there are hundreds of regulated US Utility Corps which have stock market caps
under $5 Bil or Book Value of Total Stockholders Equity below $5 Bil.
The below
amounts were obtained by reviewing the SEC filings of these largest Utility
Corps. Several of them didn’t disclose
the precise amount and thus I used the change in Net Regulated Liabilities for
the year which should be a close approximation of the precise amount.
Amazingly,
only a handful of these 37 largest US Utility Corps specifically disclosed that their
amounts owed to their Utility Customers were grossed up for the tax
effect. That just doesn’t seem right to
me. To illustrate how significant this
gross up for tax effect is Merrillville,
IN-based NiSource disclosed that its gross up for tax was $400 mil, or by more
than 40% of its net deferred income tax liability reduction of roughly $900 mil
and Minneapolis, MN-based Xcel Energy disclosed that its $2.7 Bil reduction in
its deferred income tax liability related to its property assets was grossed up
for tax by another $1.1 Bil, also by more than 40%.
| TTCA | ||||
| Corp | US | |||
| Quarter | Federal | |||
| End | Income | |||
| When | Tax | |||
| Trump | Debt | |||
| Tax | Forgiveness | |||
| Cuts | Amount | |||
| US Utility Corporation | Act | Owed to | ||
| Stock Market Caps > $5 Bil or | State | TTCA | Utility | |
| Book Value of Stk Equity > $5 Bil | City Hqs | HQs | Signed | Customers |
| mils $ | ||||
| Duke Energy | Charlotte | NC | Dec 17 | 8,313 |
| Southern Co | Atlanta | GA | Dec 17 | 7,800 |
| Exelon Corp | Chicago | IL | Dec 17 | 7,315 |
| American Electric Power | Columbus | OH | Dec 17 | 6,085 |
| Berkshire Hathaway Energy Sub | Des Moines | IA | Dec 17 | 5,950 |
| PG&E Corp | San Francisco | CA | Dec 17 | 5,700 |
| Consolidated Edison | New York | NY | Dec 17 | 5,053 |
| Edison Internationa; | Rosemead | CA | Dec 17 | 5,000 |
| NextEra Energy | Juno Beach' | FL | Dec 17 | 4,500 |
| Xcel Energy | Minneapolis | MN | Dec 17 | 3,800 |
| Dominion Energy | Richmond | VA | Dec 17 | 3,100 |
| Eversource Energy | Springfield | MA | Dec 17 | 2,900 |
| Entergy | New Orleans | LA | Dec 17 | 2,900 |
| Public Service Enterprise Group | Newark | NJ | Dec 17 | 2,800 |
| WEC Energy Group | Milwaukee | WI | Dec 17 | 2,450 |
| DTE Energy | Detroit | MI | Dec 17 | 2,450 |
| Sempra Energy | San Diego | CA | Dec 17 | 2,402 |
| First Energy | Akron | OH | Dec 17 | 2,300 |
| PPL Corp | Allentown | PA | Dec 17 | 2,185 |
| CMS Energy | Jackson | MI | Dec 17 | 1,588 |
| Pinnacle West Capital Corp | Phoenix | AZ | Dec 17 | 1,520 |
| American Water Works | Vorhees | NJ | Dec 17 | 1,510 |
| NiSource | Merrillville | IN | Dec 17 | 1,500 |
| CenterPoint Energy | Houston | TX | Dec 17 | 1,300 |
| Ameren | St Louis | MO | Dec 17 | 1,273 |
| Alliant Energy | Madison | WI | Dec 17 | 1,273 |
| SCANA Corp | Cayce | SC | Dec 17 | 1,207 |
| Fortis | Saint Johns | Canada | Dec 17 | 1,170 |
| OGE Energy | Oklahoma City | OK | Dec 17 | 1,038 |
| Westar Energy | Topeka | KS | Dec 17 | 1,000 |
| Avangrid | New Haven | CT | Dec 17 | 900 |
| Great Plains Energy | Kansas City | MO | Dec 17 | 815 |
| Atmos Energy | Dallas | TX | Dec 17 | 746 |
| AquaAmerica | Bryn Mawr | PA | Dec 17 | 660 |
| Vectren | Evansville | IN | Dec 17 | 333 |
| MDU Resources | Bismark | ND | Dec 17 | 286 |
| UGI Corp | King of Prussia | PA | Dec 17 | 216 |
| Total all 37 | 101,338 |
