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.PLEASE `'BSTITUTE FOR RESOLUTION <br /> SUBMIT1rJ WITH DOCKET DATED 5/7/84 <br /> RESOLUTION N0. 5851-84 BY: Brown, Chinnock, Gallagher, Graham, <br /> McBride, Salmon, Wendling <br /> A RESOLUTION urging the appropriate elected representatives to the Congress <br /> of the United States to support and enact House Resolution No. 4923 relating to <br /> the regulatory treatment of certain Federal tax credits and deductions allowable <br /> to regulated electric utilities. <br /> WHEREAS, there is now pending before the Congress of the United States, <br /> House Resolution 4923 to establish certain rules regarding the regulatory <br /> treatment of certain Federal tax credits and deductions allowable to regulated <br /> electric utilities (cited as the "Phantom Tax Reform and Least Cost Electric <br /> Energy Planning Act of 1984"), and <br /> WHEREAS, this Council has learned that in 1983 the Cleveland Electric <br /> Illuminating Company of Cleveland, Ohio, collected from its customers approxi- <br /> mately $120 million for its federal corporate income tax bill, but under <br /> present Federal tax laws and public utility regulations, will end up paying <br /> only an estimated $12 million, and <br /> WHEREAS, Council has learned further that the Ohio Edison Company of <br /> Akron, Ohio,. collected $147 million in 1983 for its federal corporate income <br /> tax bill, but will pay only approximately $13 Million on its income for itself <br /> and its Pennsylvania subsidiary, and <br /> WHEREAS, the difference between what customers pay to electric utility <br /> companies and what is actually paid to the Internal Revenue Service by said <br /> companies is commonly referred to as a "phantom tax" and nationally it is <br /> estimated $34 billion is collected from rate payers but not paid to the <br /> Internal Revenue Service, and <br /> WHEREAS, the excess of taxes collected from electric customers over and <br /> above the amount paid to the Federal government amounts to an involuntary loan <br /> from such rate payers to the utility companies, and <br /> WHEREAS, with the enactment of House Resolution 4923 any tax benefit to <br /> the utility companies would inure to the consumer immediately through the rate <br /> making process, rather than taking up to 40 years which is possible under <br /> current laws and regulations, and <br /> WHEREAS, this Council determines that the provisions of House Resolution <br /> No. 4923 are in the best interest of electric utility customers and wishes to <br /> express its support of the adoption of House Resolution No. 4923; now, therefore <br /> BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LAKEWOOD, STATE OF OHIO: <br /> Section 1. That the Council of the City of Lakewood, Ohio, for and. on <br /> behalf of the citizens of the City of Lakewood, hereby expresses its strong <br /> support of House Resolution. 4923 now pending before the Congress of the United <br /> States and strongly urges the representatives to the Congress of the United <br /> States to support and enact said Resolution at the earliest possible time. <br /> Section 2. That the Clerk of Council be and she is hereby authorized and <br /> directed to forward a certified copy of this Resolution to United States <br /> Senators John H. Glenn and Howard Metzembaum and to United States Representa- <br /> tives Dennis Eckart, Edward F. Feighan, Mary Rose Oakar and Louis Stokes. <br /> Adopted: dl ~ ~ " v~ <br /> PRESID T <br /> RC <br /> <br /> Approved• ~.2 fr~ I LGy,,,~~, <br /> M OR <br /> <br />