By PHYLLIS ZORN

Staff writer

Westar Energy electric customers may see lower rates soon, but Marion or Hillsboro electric customers won’t directly benefit from the company’s decreased tax bill.

The federal tax cuts and jobs act of 2017 will reduce corporate tax rates from 35 to 21 percent. Westar estimates it will see reduced costs of $65 million or more from the tax cut.

Ebony Clemons, community relations manager for Westar Energy, said the electric utility serves about two-thirds of the county. She did not know whether Hillsboro and Marion will see a reduction because customers of those cities do not purchase electricity from Westar.

Marion and Hillsboro have contracts with Kansas Municipal Power Pool, which pays Westar for transmission of power.

Marion city administrator Roger Holter said the power pool’s contract with Westar will be signed in October 2018 and take effect in June 2019.

It is not yet known whether any of Westar’s savings will be passed to its transmission customers, Holter said.

Additionally, Holter said, power pools are tax-exempt, while Westar is subject to corporate taxes.