Taxation of utilities is very fragmented.  Each state does what it wants to do, then local municipalities add on top of that.<p>There are states that specifically prohibit counties and cities from taxing residential use of gas and electricity.<p>So, in this case, the Feds got ahead of the states and enforced some uniformity.  I find it sexy.<p>Edit: Note that this law has been in place since October of 1998.  The &quot;news&quot; is that it no longer has an expiration date.  It did previously, and as such, had to be periodically renewed.