Press Release

PUC Approves Plans by Five Major Utilities to Return Additional $64 Million in Federal Tax Savings to Customers

Published on 6/16/2022

Filed under: Electric Gas

Savings from Federal Tax Cuts to be Refunded as Monthly Credits on Over 2 Million Customer Bills Through December 2022 

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved plans submitted by five major electric and natural gas utilities to return more than $64 million in tax savings associated with the federal Tax Cuts and Jobs Act of 2017 to over 2 million Pennsylvania consumers and businesses.  The additional tax savings will be refunded to customers between now and the end of the year.

The Commission voted 3-0 today approve petitions filed by Pennsylvania Power Company (Penn Power), West Penn Power Company (West Penn Power), Pennsylvania Electric Company (Penelec), Metropolitan Edison Company (Met-Ed) – which collectively serve approximately 2 million customers across Pennsylvania – along with the Peoples Gas Company (Peoples Gas) – which provides service to more than 63,000 residents and businesses in western Pennsylvania.

All the plans approved by the PUC today will distribute excess deferred income taxes associated with the federal tax cuts act, which will be refunded to consumers as a “negative surcharge” – or credit – on monthly customer bills.  This is the same mechanism already being used by these utilities to return savings from the federal tax cuts act.  The additional funds will be included in monthly bill credits starting in July and continuing through December 2022.

Added Tax Savings for Customers

Today’s PUC orders direct the following amounts of additional federal tax savings to be returned to utility customers:

• Penn Power – $5 million
• West Penn Power – $15.2 million
• Penelec – $26.8 million
• Met-Ed – $16.3 million
• Peoples Gas – $939,925

In each of these cases, customers will see an increase in the negative surcharge on their monthly bills for the remainder of this year.

About the PUC

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket Nos.:

P-2022-3030987
P-2022-3030988
P-2022-3030989
P-2022-3030990
P-2022-3031235

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov