According to the Florida Power & Light Company they are going to use the federal tax savings of the company, which they received based on the new tax law, to cover the costs incurred after Hurricane Irma. The recovery costs after the natural disaster amounted to $1.3 billion. This lifted a heavy burden from the homeowners including those who are processing their Florida application for a tax ID.
Due to this decision of the utility company, it is expected that the average bill of a residential property from FPL will decrease to $99.37 from the usual amount of $102.72. If there are no surcharges due to the Irma storm which ranges from $4 and $5.50 every month until the year 2020, the average savings of the company’s subscribers will amount to $250. Currently, FPL has a total of 4.9 million customers.
FPL has already expressed their plan to gather a new charge due to the storm starting from the month of March and there is also the plan to get approval from the Public Service Commission of Florida to be able to charge additional until they are able to pay off the bill they have incurred because of the electric grid restoration.
According to the president of FPL, Eric Silagy, the federal tax reform came at the right time because they have just experienced one of the most expensive hurricanes that have visited in the history of Florida. It presented a good opportunity that has never happened before.
The public counsel of Florida, J.R. Kelly, expressed that the Office of Public Council together with various parties that made a deal with the utility company in 2016 have already expected the implementation of the corporate tax cuts. Trump has always been vocal about the plan of his Administration and that was a part of it. During the deal, the parties have already created a provision incorporated in the agreement regarding action they will take on the issue.
According to Kelly, taxpayers beginning their Florida Application for a tax ID should know that consumes pay based on their income taxes which is a factor.