Pepco and Delmarva Power recently announced they will file with the Maryland Public Service Commission in early February, outlining plans to provide annual tax savings to more than 770,000 electric customers in Maryland.
If approved, Pepco and Delmarva Power would plan to begin providing a credit lowering customer bills beginning in the first quarter of 2018.
The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law Dec. 22, 2017, and became effective Jan. 1. The decrease in the corporate tax rate from 35 percent to 21 percent reduces the amount of federal income tax Pepco and Delmarva Power will have to pay.
“The tax law will result in lower bills for our customers and lower taxes for Pepco and Delmarva Power,” said Dave Velazquez, president and CEO, Pepco Holdings, which includes Pepco and Delmarva Power. “We are pleased to provide these savings to our customers, while at the same time ensuring we are making prudent investments in the local power grid to maintain the safe, reliable, and affordable service our customers have come to expect.”
The Maryland Public Service Commission will determine how the tax benefits will be provided to customers.