Effective tax rates for affiliated utilities

Journal Article · Thu Apr 12 04:00:00 EST 1979 · Public Util. Fortn.; (United States)

OSTI ID:6265217

By filing a consolidated tax return, a group of affiliated parent and subsidiary corporations usually pays a lower total tax than would have been paid had each affiliated company filed a separate tax return. This saving occurs primarily because income-producing companies are able to write off tax losses incurred by unprofitable affiliates while independent companies are obliged to carry deficits to other tax years as net operating losses. Recognizing the tax savings available to affiliated utilities, courts and commissions frequently have disregarded holding-company arrangements in calculating a proper income-tax expense allowance for rate-making purposes. Exactly how (and when) to adjust utilities tax rates is a matter of dispute, however, as shown by a number of Federal and state rate decisions, some of which are reviewed here.

• OSTI ID: 6265217
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 103:8; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
ALLOCATIONS
DECISION MAKING
GOVERNMENT POLICIES
INCOME
OPERATION
PROFITS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
STATE GOVERNMENT
TAXES