PPL Electric to Pass on $44 Million in Federal Tax Cut Savings to Pennsylvania Customers

The Pennsylvania Public Utility Commission approved PPL Electric Utilities Corporation’s plan to return $44 million in federal tax reform savings to customers in the form of a credit on their monthly bills during 2020. The amount, accumulated during the first six months of 2018, is in addition to the refund that the company is already distributing to consumers as a monthly negative surcharge of 7.81 percent. The federal tax law slashed the corporate income tax rate to 21 percent from 35 percent effective Jan. 1, 2018. 

The commission established a process for utilities to return savings accrued in the “stub period” from Jan. 1, 2018 to June 30, 2018 as part of each utility’s next rate case if filed within three years, or by May 2021. PPL proposed to flow back the stub period savings of $39 million, plus accrued interest, over the next year in accordance with the commission’s intent to avoid unreasonable delays in distributing the refunds. Under the plan, the utility will submit a revised surcharge rate Dec.1, 2019 to include the savings. 

The agency has directed 17 major utilities to return more than $400 million per year in tax cut savings to consumers and businesses they serve.

PPL Electric is a subsidiary of PPL Corporation.