With the end of monopoly in electric generation, utilities can assure savings by taking a creative approach to state and local taxation.
Deregulation of electric generation will force electric utilities to examine closely their state and local tax burden. Under deregulation, most state and local taxes will not be part of a reimbursable rate structure. Rather, such costs will directly influence bottom-line profitability.
Local property taxes take a big bite out of electric generation profits. Coal suppliers of utilities pay significant local taxes.