Several states have already reacted to the recently passed Tax Cuts and Jobs Act of 2017 (TCJA), which was signed into law by President Trump on December 22, 2017. Most of the provisions of the TCJA became effective as of January 1, 2018. Some states have opened proceedings to review the impact of the TCJA on utility rates, while others have signaled an intent to monitor how utility revenue requirements and rates may be impacted as a result of changes to the federal tax code, especially those reducing the corporate tax rate and revising the federal tax structure.

The Michigan Public Service Commission moved to establish a statewide reliability capacity charge that customers of alternative electric suppliers (AESs) would have to pay if those suppliers do not have enough power to serve their customers’ anticipated needs.