House Consumer Affairs Committee Democratic Chairman Tom Caltagirone said today that the Pennsylvania Public Utility Commission’s order directing utility suppliers to pass along industry tax reductions to their customers is welcome news for families and seniors across the state.
The order requires a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, water and wastewater utilities, totaling more than $320 million per year. The consumer credits are the result of a substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act of 2017, which impacted the tax liability of many utilities.
“I fought hard for this credit because consumers, who have been paying state and federal taxes, deserve relief for the investments they’ve made in Pennsylvania’s utility infrastructure and delivery,” said Caltagirone, D-Berks. “Thank you to the PUC for capitalizing on an opportunity to provide consumer relief, especially for working families and seniors.”
According to a PUC release last week, the PUC also will 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. In those situations, the commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility.
Public utilities required to begin returning federal tax savings to consumers include Citizens’ Electric Co. of Lewisburg, Metropolitan Edison Co., Pennsylvania Electric Co., Pennsylvania Power Company, Pike County Light & Power Co., PPL Electric Utilities Corp., Wellsboro Electric Co., West Penn Power Co., PECO Energy Co. – Gas Division, National Fuel Gas Distribution Corp., Peoples Gas Co. LLC, Peoples Natural Gas Co. LLC – Equitable Division, UGI Central Penn Gas Inc., UGI Penn Natural Gas Inc., UGI Utilities, Inc. – Gas Division, Pennsylvania-American Water Co. and Pennsylvania-American Water Co. – Wastewater.
Utilities not required to take immediate action because of the continuing analysis of tax reform impacts on their current or pending rate cases include UGI Utilities Inc. – Electric, Columbia Gas of Pennsylvania Inc., Duquesne Light Co., PECO Energy Co. – Electric, York Water Co., Suez Water Pennsylvania Inc. and Aqua Pennsylvania Inc. In each of those situations, any tax savings will be considered as part of the broader evaluation of their rates.
