The Delaware Public Service Commission approved a petition from the state’s Public Advocate to ensure that consumers will receive the benefits of any savings realized by regulated Delaware utilities under the federal Tax Cuts and Jobs Act of 2017.
The order directs each regulated utility to estimate the impact of the new tax formula on the utility’s cost of service and to propose procedures for reducing rates to reflect those impacts on or before March 31.
“This is about making sure Delaware consumers get a fair deal from their utility providers, and I’m pleased that the Public Service Commission has acted in support of that goal,” said Gov. John Carney. “I want to thank our Public Advocate for fulfilling his duty to the ratepayers, and the PSC for adopting this order.”
According to a release, Delmarva Power, which recently filed applications for both electric and natural gas rate increases, agreed with the Public Advocate that the Tax act should reduce the level of federal income taxes included in its rates. Delmarva will adjust its proposed increases in both of its pending rate cases.
“Today was a win for ratepayers. We want to thank the commission for its decision, the members of the public who submitted comments, and the bi-partisan group of Delaware legislators who wrote in support of our petition,” said Public Advocate Drew Slater. “With this order, we look forward to ensuring that Delaware ratepayers benefit from this corporate tax reduction in the form of lower rates for utility services statewide.”
All rate classes of all regulated utilities will likely see reduced rates, with procedural schedules to be set for hearings before the Commission. In approving this petition, Delaware joins several states that have instructed utilities to ensure that ratepayers receive the full benefit of federal tax cuts realized by utilities.
