The state Public Utilities Commission said Friday it has opened a new proceeding to investigate the impact on regulated utilities in Hawaii of the recently signed Tax Cuts and Jobs Act of 2017. The commission said it intends to ensure that Hawaii customers benefit from lower federal tax rates on their utility bills.

The 2017 Tax Act reduces the federal corporate income tax rate to 21 percent from 35 percent, among other tax changes.

“This legislation should provide substantial savings to customers of many public utilities in Hawaii,” PUC Chairman Randy Iwase said. “The Public Utilities Commission will work with regulated utilities and the Consumer Advocate to ensure these tax savings are passed on to customers.”

The PUC has directed public utilities to immediately begin tracking any savings incurred from lower tax rates until the PUC can issue final decisions regarding necessary utility rate adjustments to return the tax benefits to customers. The PUC said each public utility shall track and record the benefits resulting from the new tax law, including recognition of excess deferred income tax.