Families can look forward to another unexpected benefit from the tax cuts signed into law at the end of last year: lower energy and utility bills. Utility companies are passing on savings from federal tax cuts to customers by lowering their energy rates. That’s more good news for family budgets.
A slew of companies nationwide made announcements with either specific rate reductions or commitments to pass on the savings from lower tax rates to customers. Here’s a sampling:
– $200 Million – Commonwealth Edison Company (ComEd) plans to pass on approximately $200 million in rate reductions to 10 million customers
– $82 Million – Baltimore Gas & Electric is passing on $82 million worth of tax savings
– $34 Million – Washington Gas plans to pass on an estimated $34 million in annual tax savings in the rates charged to 1.1 million customers in the District of Columbia, Maryland, and Virginia
Other companies are figuring out how much and what form they will pass on savings such as:
– Rocky Mountain Power which serves 1.8 million customers in Utah, Wyoming, and Idaho
– Pacific Power serving customers in California, Oregon and Washington state
– Pepco serves 296,000 electric customers in the District of Columbia
– Dominion Energy, Virginia’s largest utility with 2.5 million customers
Utilities are reportedly required to pass on savings to customers as their cost of providing these services falls. State regulators actively asking these companies for their proposals for state approval.
Elected officials, regulators, and consumer advocates in over a dozen states also want Washington regulators to provide additional oversight to ensure that utility companies pass on savings from the corporate tax to customers.
Regardless of whether these lawmakers and regulators supported the Republican-led tax reform effort that cut corporate and individual tax rates, everyone is coming around to the benefits of tax cuts for regular households.
Families may get a little relief to their budgets on top of their expected tax relief. When you add up the savings on utility bills across all customers, it could be in the billions of dollars.
While tax relief is important, this is just part of the story of what the tax cuts and tax reform will mean for our economy. We can expect greater investment in businesses, higher wages, better-paying jobs, and a stronger economic growth.
Companies handed out bonuses and pay raises to their employers just after the Tax Cuts and Jobs Act was passed at the end of last year. Lower utility bills provide more good news from this pro-growth, pro-family, and pro-worker bill.