Consumers Power Co. v. Public Service Commission

Under the Tax Reform Act of 1986 (tra), the corporate income tax rate was reduced from forty-six percent to thirty-four percent. As a result of this reduction, the Michigan Public Service Commission, in an October 28, 1986, order, required all public utilities to file information setting forth the net effect of the tra on utility rates and requested proposals for any appropriate rate changes. Consumers Power Company filed information alleging that there should be no reduction in its gas and electric rates. Consumers claimed that its situation was unique because: (1) its existing rates were at…