More than 100 companies have promises bonuses and other benefits to employees in the wake of the Tax Cuts and Job Plan that was signed into law by President Donald Trump in December. Recently, a number of utility companies have announced that they are passing on benefits to their customers that stem from the new law. The corporate tax rate was cut to 21 percent.
Baltimore Gas & Electric will extend lower gas and electric bills for its customers, due to the $82 million in tax savings it received from the Republican bill:
"Today BGE will file with the Maryland Public Service Commission (PSC) to pass approximately $82 million in annual tax savings to customers, resulting from federal tax cost reductions. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018. If approved by the PSC, the average BGE residential electric customer can expect to see an estimated $2.31 decrease on their monthly bill, and the average residential combined natural gas and electric customer can expect an estimated $4.27 monthly reduction, effective in February 2018.
“Reduced tax costs create an opportunity for BGE customers to benefit from further decreases in their total energy bills,” said Calvin G. Butler Jr, chief executive officer of BGE, according to a press release.
Pacific Power will also offer savings to its customers. According to an article in My Columbia Basin, Pacific Power CEO Stefan Bird said: “We strive to provide our customers reliable service while keeping rates low,” and added, "The benefit of this tax cut should be passed on to our customers – and we will work with our regulators and stakeholders on the best way to do that.”
Pepco, which serves the Metro Washington DC area announced in a press release that the company will file a statement with the Public Service Commission of the District of Columbia in early February, that will outline "plans to provide annual tax savings to more than 296,000 electric customers in the District of Columbia. If approved, Pepco would plan to begin providing a credit lowering customer bills starting in the first quarter of 2018. The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Pepco will have to pay. According to the release, Pepco Holdings CEO Dave Velasquez said, “The tax law will result in lower bills for our customers and lower taxes for Pepco.” Velazquez went on to say, “We are pleased to provide these savings to our customers, while at the same time ensuring we are making prudent investments in the local power grid to maintain the safe, reliable, and affordable service our customers have come to expect.”
Rocky Mountain Power is planning to give its customers some benefit from its federal tax savings, according to Local News 8.
Commonwealth Edison Company (ComEd), which serves the Chicago metro area, will share $200 million worth of tax savings to its customers. According to a company press release, on January 5, ComEd filed a petition with the Illinois Commerce Commission (ICC) "seeking approval to pass along approximately $200 million in tax savings to its customers in 2018. If approved by the ICC, the average ComEd residential customer can expect to see an estimated $2-$3 decrease on their monthly bill related to the tax reduction." The release credited the Republican tax reform, which decreased the corporate tax rate from 35 percent to 21 percent, for reducing the amount of federal income tax ComEd will have to pay.