Energy Taxes: Analyzing the Utility Bill.

Some facilities are exempt, but most are taxed on energy use. Is there any way to avoid the pain?

Many energy users in the industrial and manufacturing sectors were hopeful that deregulation would produce noticeable savings in their massive energy bills. While deregulation has had positive benefits for heavy energy users in states like New York and Pennsylvania--where energy costs are disproportionately high--such users in states like Wisconsin--where energy costs are disproportionately low--actually stand to suffer.

Regardless of whether one's company operates in a state where energy costs are high or low, steps can be taken to ensure that the organization maximizes its use of energy-tax exemptions and savings opportunities resulting from deregulation.

ENERGY TAXES AND EXEMPTIONS

Currently, the majority of states offer an energy-tax exemption. Depending on the state, exemptions are offered to companies involved in manufacturing, processing, fabricating, assembling, printing, recycling, farming, mining, and other qualifying activities (see Figure below for a look at states …