Friday, March 17, 2006
Electric utility customers required to pay for companies' income tax,
even though many of those firms avoid paying what they collect.
NEW YORK (CNNMoney.com) - Many electric utilities are collecting money from customers to pay income taxes, and then never paying those taxes, according to a report published Wednesday.Full Article
The New York Times reports that the practice is legal and defended by the companies as a smart business practice. But consumer advocates told the newspaper that the practice is wrong and that if the companies don't owe the taxes, then customers shouldn't be forced to pay for them as part of state-approved electric rates.
