Press Releases

PUC Approves Plan for PPL to Distribute Additional $44 Million in Federal Tax Reform Savings to Customers During 2020

November 14, 2019

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a petition filed by PPL Electric Utilities Corporation (PPL) to distribute an additional $44 million in federal tax reform savings to the utility’s customers during calendar year 2020.

The Commission voted 5-0 to approve the plan submitted by PPL to return the tax savings from the federal Tax Cuts and Jobs Act of 2017 (TCJA), that accumulated between Jan. 1, 2018 and June 30, 2018. PPL proposed to begin returning tax reform savings to consumers in the form of a “negative surcharge” or credit on their monthly utility bills during 2020.

Pursuant to orders approved by the PUC last year, the Commission established a process for utilities to return tax savings that accumulated during the first six months of 2018 – known as the “stub period” – to consumers as part of each utility’s next base rate case, if a rate case was filed within three years. Otherwise, if no rate case is filed, the utilities are required to return the stub period savings by May of 2021.

PPL proposed returning the stub period tax savings, valued at $39 million plus accrued interest, during the 2020 calendar year – rather than waiting until May of 2021 – to address the Commission’s stated intent to “avoid unreasonable delays in dealing with such funds.” These funds are in addition to the annual TCJA savings that PPL is already returning to consumers with their current monthly TCJA negative surcharge/credit (currently set at -7.81%).

Under the plan approved by the Commission today, PPL will file documents with the Commission on December 1, 2019, establishing a revised TJCA surcharge rate for the year 2020 – which will include the stub period savings (plus interest).

The PUC’s TCJA tax reform plan required 17 major electric, natural gas and water/wastewater utilities to return more than $400 million per year in tax reform savings directly to the consumers and businesses served by those utilities.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

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Docket No.: P-2019-3013366

Contact:Nils Hagen-Frederiksen
Press Secretary

Pennsylvania Public Utility Commission
Press Office
P.O. Box 3265, Harrisburg, PA 17105-3265
(717) 787-5722 FAX (717) 787-4193

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