If you’re a customer of FirstEnergy, National Fuel or Pennsylvania American Water, you could see a savings on upcoming bills.
The Pennsylvania Public Utility Commission on Thursday issued an order that requires 17 electric, natural gas, and water and wastewater utility companies to give customers a monthly credit in the wake of a major decrease in federal corporate tax rates and other tax changes. More than $320 million per year in federal tax savings could be returned to customers.
Locally, National Fuel Gas Distribution Corp. will be filing to decrease rates, effective July 1, said company spokeswoman Carly Manino.
“Based on current rates and the overall 2.2 percent reduction referenced in the order, we estimate that the average residential customer’s bill could be reduced by approximately $19 per year. This estimate is subject to change following further review,” she said.
Meanwhile, FirstEnergy officials need to receive and then go over the written order, said Scott Surgeoner, spokesperson for FirstEnergy. The company includes Penelec and West Penn Power.
“It would be premature to provide any comment until we review their order,” he said.
However, Penelec customers could see a 8.50 percent and West Penn Power could realize a 7.34 percent reduction in their bills, according to information from the PUC.
For the Pennsylvania American Water, which operates a wastewater treatment plant in the Kane area, “The process of how the negative surcharge will be applied to customers’ bills and how much is to be determined,” said Gary Lobaugh, company spokesman. “We will communicate this information to our customers once it has been prepared, and then reviewed and approved by the PUC.”
Company officials expect the adjustment to start July 1, he said.
“The January-June 2018 period is expected to be addressed, with interest, in our next general rate case,” Lobaugh said.
Customers could realize distribution charges decrease from .56-percent to 8.55-percent, all dependent on revenue and tax impact on the utility companies, the PUC reports.
“As economic regulators, it is the Commission’s responsibility to ensure that utility rates are just and reasonable. Further, it is necessary for utility rates to reflect relevant tax expenses,” said PUC Chairman Gladys M. Brown in a statement. “I believe this work (by PUC staff) has resulted in an innovative answer by this Commission to effectively flow-through the benefits of the (Tax Cuts and Jobs Act) back to customers.”
Public utilities required to start giving back federal tax savings to consumers include Pennsylvania Electric Co., West Penn Power Co., National Fuel Gas Distribution Corp., and UGI Central Penn Gas Inc. (parts of McKean and Potter counties).
One of the utility companies that does not have to immediately act on PUC’s order is Columbia Gas of Pennsylvania Inc., which services McKean and Elk counties. PUC officials are continuing to look into tax reform impacts on current or pending rate cases.
“In each of those situations, any tax savings will be considered as part of the broader evaluation of their rates,” PUC said.
