Delmarva Power filed plans with the Delaware Public Service Commission to pass along tax savings to customers.
The company filed an update to its pending electric and natural gas rate cases with the PSC that will pass along $26 million in tax savings to its customers. This includes $19 million in annual tax savings for electric customers and $7 million in annual tax savings for natural gas customers.
Corporate income taxes are part of the cost of doing business and are part of the rate calculations of utilities. The state is expected to seek reductions from other private utilities.
“We are pleased that we have the opportunity to provide our customers with meaningful savings,” said Gary Stockbridge, Delmarva Power region president. “These savings will help offset the proposed rate changes that have been essential to our efforts in providing safe and reliable service for our customers.”
Delmarva Power expects that this will result in $2.99 in monthly savings for the average residential electric customer and $4.62 in monthly savings during the winter heating months for the average gas space heating customer. Commercial customers will also benefit from monthly savings.
Delmarva Power will work with the Division of the Public Advocate and the staff of the Delaware Public Service Commission to determine how soon these benefits can begin to be passed along to customers.
Delmarva Power filed the proposal to reduce rates as a result of the federal Tax Cuts and Jobs Act.