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1st Quarter
2005 |
URInformed |
Inside this Issue
Utility Resources Corporation |
DTE Energy Electric Rate Case Settled on November 23, 2004 The rate case for DTE Energy was finally resolved on November 23, 2004. The 131-page order has now been reviewed by Utility Resources Corporation (UR) and the bottom line is your electric costs are going to increase a minimum of 7.34% effective January 1, 2005. Furthermore, many current DTE customers who are buying electricity from independent suppliers may be better off choosing become to a DTE tariff customer when their current supplier contract expires. Here are the facts: 1) If you decide you want to return to DTE any time before September 30, 2005, you must give written notice to DTE Energy by December 31, 2004. 2) If you fail to give notice by December 31, 2004 and return to the utility before September 30, 2005, you will pay the tariff rate plus 10% or the market rate plus 10%, whichever is higher. 3) If you return to DTE Energy, you must stay for a period of 12 months before you can return to the open market. 4) If you want to return to DTE Energy before the summer of 2006, you must give notice by December 1, 2005. You will receive a letter from DTE Energy, and possibly from your current supplier, about these issues. If you would like UR to review your options at no cost or obligation, please fax any information you receive to 913-649-2557 along with the most current DTE Energy and supplier bill and someone will contact you. Please remember that if you choose to become a DTE tariff customer, after 12 months you will have the opportunity to return to the open market if market prices at that time will produce savings for you. If you have any questions or need any further clarification, please do not hesitate to give us a call at 800-313-6661.
New York Advisory Opinion Exempts Sales of Electricity to Landlords Who Lease Space to Manufacturers In advisory opinion TSB-A-04(24)S issued September 28, 2004, the New York Department of Taxation granted a refund of sales taxes paid on the purchase of utilities used in manufacturing. What is unique about this opinion is that the building’s landlord claimed the refund for electricity used in manufacturing by the landlord’s tenant. The landlord, Company A, was a manufacturer and leased part of its building to Company B, also a manufacturing company and an affiliate of Company A. Company A purchased electricity from the utility company that it subsequently bills to its affiliate based upon usage as estimated by a percentage of floor space. The affiliate received an invoice for rent and a separately stated charge for electric and gas usage, which was treated as additional rent. Company A and Company B both use electricity in the operation of welding machines and large equipment in production activities. The electricity used by Company A in manufacturing was exempt from sales tax; in addition, a portion of the electricity purchased by Company A and consumed by Company B was also partially exempt from sales tax. Frequently Asked Questions: Why can't we just do this on our own? UR offers expertise in the volatile utility market. Our expertise and large client base allows us to get the best pricing and compare that pricing to other companies behind the same utility. |
