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 Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
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.