Many homeowners across the commonwealth will be noticing a pleasant surprise in their utility bills. The state Public Utility Commission says substantial savings triggered by the new federal tax rates have begun to take effect.
In May, the PUC ordered seventeen major electric, gas, water, and wastewater companies to begin adding credits or “negative surcharges” to their customers’ monthly bills because of the substantial decreases in federal corporate tax rates and other new tax reforms. The original estimate was a total of $320 million in annual savings, but that has increased to $400 million.
Among the seventeen companies are Penelec, West Penn Power, Peoples Gas, and Pennsylvania American Water Company, which all have customers in Indiana County.
Electric utilities were ordered to reduce their distribution charges by 4.74 percent per month. Gas company distribution rates will be reduced by 4.92 percent, and water and wastewater rates will be cut by 2.57 percent.
