Utility companies annouce plans to reduce customers' energy costs. (Screenshot)
From Washington, DC to Washington state, utility companies are crediting passage of Republicans’ Tax Cut and Jobs Act for their plans to lower their retail customers’ monthly bills.
Company press releases announcing the rate-cut plans specifically cite “the decrease in the Corporate Tax Rate from 35 percent to 21 percent” as the reason for reducing energy rates.
The utility companies that have reported plans to cut rates, thus far, include:
- Pepco plans to lower the bills of 296,000 electric customers in the District of Columbia,
- Pepco and Delmava Power plan to pass on savings to their 500,000 electric customers in Delaware and Maryland and approximately 129,000 natural gas delivery customers in northern Delaware,
- Baltimore Gas & Electric is passing on $82 million worth of tax savings, which it says will reduce the average customer’s monthly combined natural gas and electric by $4.27,
- Pacific Power, which provides electricity to 740,000 customers in Washington, Oregon and California, announced a yet-to-be-determined rate cut due to lower corporate tax rate,
- Rocky Mountain Power announced plans a rate reduction, which it says “will take several months to calculate” to its 1.1 million customers in Utah, Wyoming and Idaho,
- Commonwealth Edison Company (ComEd) is passing on $200 million worth of tax savings to its four million customers in northern Illinois. “Residential customer can expect to see an estimated $2-$3 decrease on their monthly bill related to the tax reduction,” the utility says.
All rate cuts are dependent upon the approval of their respective state public service and commerce commissions.