With the passage of the federal tax bill, Attorney General Maura Healey is calling on the Department of Public Utilities to reverse Eversource\u2019s recent rate hike and instead, lower customers\u2019 rates by more than $74 million dollars. \n\nAG Healey\u2019s Office, in a filing on Wednesday, urged the DPU to recalculate Eversource\u2019s rates to reflect the coming reduction of the federal corporate tax from 35 to 21 percent. By doing so, the Department can ensure that Eversource and other utilities do not receive a major windfall at the expense of customers and their corporate savings instead go to Massachusetts\u2019 residents.\n\n\u201cUnder this tax bill, Eversource and other utility companies are getting a major tax break, paid for by the American people,\u201d said AG Healey. \u201cWe\u2019re taking this action to ensure that the companies use these corporate savings to lower rates for Massachusetts customers instead of lining their own pockets.\u201d\n\nThe federal Tax Cut and Jobs Act, which passed by Congress this week, lowers the corporate tax rate from 35 percent to 21 percent effective on Feb. 1, 2018 \u2013 the same day Eversource\u2019s $220 million rate hike is set to go into effect. Since the DPU approved this rate hike last month based on the utility company paying the higher federal tax rate, AG Healey is urging the DPU to lower the rates customers will have to pay to reflect the lower tax rate. The AG\u2019s Office determined that the new federal law should result in a $50 million decrease from existing rates for NStar Electric customers and a 50 percent reduction in the rate hike for Western Massachusetts Electric Company (WMECO) customers to $13 million (instead of $25 million). \n\nLast month, the DPU issued an order allowing Eversource to increase its electric rates by $37 million in the first year and an additional 3.5 percent per year over the following four years. This equated to a $12 million increase in the first year for NStar customers and $25 million for WMECO customers. \n\nWhen the DPU determines a company\u2019s total revenue requirement, it allows the company to include the amount the company will pay in federal income taxes as an expense in the cost of service. Since the NStar and WMECo revenue requirements were based on Eversource paying the higher tax rate, the AG\u2019s Office determined that the DPU should reduce NStar\u2019s revenue requirement by $62 million and WMECo\u2019s by $11.8 million. As a result, Eversource customers will see a decrease in their existing rates totaling $50 million. WMECo customers\u2019 rates will get a 50 percent reduction in their hike, from $25 million to $13 million.\n\nThe AG\u2019s Office also filed a petition with the DPU requesting that the Department recalculate the rates for all major electricity, gas, and water to reflect the lower corporate tax rate. Doing so, would lower all utility customers\u2019 rates.\n\nIn 1986, the DPU required all utilities to recalculate their revenue requirements and lower their rates after President Ronald Reagan lowered the corporate tax rate from 46 to 34 percent. \n\nAG Healey and her office challenged Eversource\u2019s proposed rate increase over the past year including questioning the company during the discovery process, cross-examining witnesses during evidentiary hearings on the case, along with and testifying at 10 public hearings across the state. The AG\u2019s Office advocated that the DPU should reject the company\u2019s request for a $284 million rate increase and should instead order the company to decrease its rates.\n\nOn Wednesday, the AG\u2019s Office filed an appeal of the DPU\u2019s decision in the Eversource rate case, specifically the DPU\u2019s approval of a 10 percent shareholder return, one of the highest allowed by an electric distribution company regulator in the country. The AG\u2019s Office also filed a motion for reconsideration, again urging the DPU to reduce customers\u2019 annual rate increases under Eversource\u2019s five-year rate plan, along with reconsidering how it treats the accounting and recovery of certain vegetation management expenses, which would save customers over $40 million.