AARP PA Praises PUC Order Requiring Utilities to Pass Federal Tax Savings On To Consumers

Posted on 05/30/18 by Michael Capreri

Harrisburg, PA –AARP Pennsylvania today applauded an order by the Pennsylvania Public Utility Commission that will require 17 electric, natural gas, water and wastewater utility companies to return $320 million to consumers due to changes in Federal Tax law that took effect on Jan. 1.

Back in March, AARP Pennsylvania asked the PUC to adjust current customer utility bills to reflect changes in corporate tax obligations included in the Tax Cuts and Jobs Act of 2017. That law lowered the corporate tax rate from 35 percent to 21 percent.

“We at AARP applaud the PUC for moving swiftly to ensure that the much-lower federal tax obligations of utilities are immediately passed along to consumers,” said AARP Pennsylvania State Director Bill Johnston-Walsh.

Customers of the companies covered by yesterday’s order will see the distribution charges on monthly bills decrease from .56-percent to 8.55-percent, depending on the revenue and tax impact on each utility.

In addition to the 17 utilities included in yesterday’s PUC order, state regulators will continue to consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018.

“We believe that utility rates allowing companies to recover federal tax expenses at the previous 35% rate should not serve as an unwarranted windfall,” said Johnston-Walsh.

In Pennsylvania and throughout the country, AARP is a strong and effective voice that works to save consumers money and to ensure that utility costs are affordable and fair to consumers.

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