Exelon Utilities Passing Along $525M to Customers Because of Tax Cuts and Jobs Act
WASHINGTON, D.C.— Exelon Utilities announced it is delivering a surge of $525 million in savings from the Tax Cuts and Jobs Act to 10 million customers across five states and DC to reduce their monthly bills. Exelon’s subsidiaries, ComEd, BGE, Atlantic City Electric, Delmarva Power, PECO, and Pepco will all soon power customers at a lower rate.
- ComEd will pass along $200 million in savings
- BGE will reduce rates with $103 million in tax savings
- Atlantic City Electric will provide $23 million in savings
- Delmarva Power will pass along $39 million in savings
- PECO will deliver $91 million in savings
- Pepco will reduce rates with $31 million in savings
The good news of tax reform is electric as more than 400 other companies have announced reduced rates for customers or increased benefits, raises, bonuses and hiring investments for employees. Tax reform has not only given a surge to the economy, but for most entrepreneurs, business has never looked brighter.
To see Exelon’s full announcement, click here or read below.
To see the growing number of companies increasing wages, investments, jobs, and bonuses because of the Tax Cuts and Jobs Act, click here.
EXELON UTILITIES PASSING ALONG TAX CUT SAVINGS TO CUSTOMERS
April 3, 2018
At Exelon, we know how important reliable and affordable energy is to our customers. So, when Congress passed the Tax Cuts and Jobs Acts (TCJA), our teams immediately went to work figuring out how to pass the federal tax savings on to our customers. With the corporate tax rate decreasing from 35 percent to 21 percent, Exelon and its six utilities will be able to provide at least $525 million in savings to our 10 million utility customers across five states and the District of Columbia.
We’re committed to working with state and federal regulators to make sure these changes are implemented – and fast. Here’s a breakdown of the actions we’re taking:
The Illinois Commerce Commission has approved ComEd’s plan to pass along approximately $200 million in tax savings to its customers this year. ComEd residential customers can expect to see an estimated $2-$3 decrease on their average monthly bill because of the tax savings that went into effect in February.
The average residential electric customer of BGE is now receiving close to a $3 decrease on their monthly bill, and the average residential combined natural gas and electric customer will receive an estimated $5.41 monthly reduction. Commercial customers are also receiving monthly bill reductions, all of which took effect on Feb. 1, 2018, as part of the $103 million in annual tax savings being delivered to customers.
Atlantic City Electric
Atlantic City Electric will provide $23 million in annual tax savings to its customers. The company made a filing this month with the New Jersey Board of Public Utilities, which was approved on March 26, 2018. Customers will begin to see reductions on their bills around April 1, 2018.
Delmarva Power has filed customer benefits plans with the Delaware and Maryland state public service commissions to effectively pass on a combined $39 million in tax savings to its gas and electric customers. In Delaware, the benefits will include $19 million for electric customers (an average of $2.99 per month) and $7 million for natural gas customers (an average of $4.77 per month). Similarly, residential electric customers in Maryland will see a $3.82 decrease on their monthly bill for annual tax savings of $13 million.
Our Philadelphia-based utility plans to pass along approximately $91 million in tax savings once the Pennsylvania Public Service Commission approves the customer benefits plan PECO filed this month.
For Maryland residential electric customers with Pepco, the $31 million in annual tax reductions will result in a $2.92 average savings in their monthly bill. In D.C., the $39 million in annual tax reductions mean the average Pepco D.C. residential electric customer will see a $2.32 decrease on their monthly bill.
While passing savings along to customers, Exelon utilities continue to invest in energy infrastructure that will provide long-term benefits to customers, including enhanced reliability. For example, ComEd will install nearly 4 million smart meters by the end of 2018. PHI is aiming for record reliability with its investments in the local power grid. And BGE’s Strategic Infrastructure Development and Enhancement program has resulted in accelerated modernization of the natural gas system.
Through these and other efforts, Exelon and its utilities constantly strive to put customers first.