Two weeks after AG Healey called on state utilities to pass their new tax savings onto customers, Eversource has agreed to use the corporate savings it will receive under the new federal tax law to lower rates for its 1.4 million Massachusetts customers.\n\nIn a Dec. 20 filing, AG Healey\u2019s Office urged the Department of Public Utilities (DPU) to recalculate Eversource\u2019s recently approved rate hike to reflect the reduction of the federal corporate tax rate from 35 to 21 percent. AG Healey is the first attorney general in the country to publicly call for across-the-board cuts in electric, gas, and water rates, following the passage of the new law.\n\n\u201cThis tax bill is being paid for by the people of Massachusetts, so the money should go back in their pockets,\u201d said AG Healey. \u201cOur office filed this action to ensure that these savings go to customers. We are glad that Eversource has done the right thing by agreeing to lower its rates and we call on all our state regulated utilities to do the same.\u201d\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. The AG\u2019s Office argued in its filing that because the DPU approved new rates based on Eversource paying the higher federal tax rate, the company\u2019s rates should be reduced to reflect the lower corporate tax rate, ensuring that customers see the savings. In its filing today, Eversource agrees that its rates must be changed to reflect the lower tax rate.\u00a0 The new rates will go into effect on February 1. \n\nIn its filing today, Eversource proposes to lower its existing rates for NStar Electric customers by approximately $35 million and reduce the rate hike for its Western Massachusetts Electric Company (WMECo) customers to $16 million, instead of the $25 million approved by the DPU. The AG\u2019s Office is reviewing today\u2019s filing including the company\u2019s calculations of the rate reduction and proposed implementation dates.\n\nIn late November, 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\nThe AG\u2019s Office also filed a petition with the DPU last month requesting that the Department recalculate the rates for all major electricity, gas, and water companies to reflect the lower corporate tax rate. Doing so, would lower all Massachusetts utility customers\u2019 rates.\n\nLast month, 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.