Sussex Countian | by Submitted News
The Delaware Public Service Commission on Jan. 31 approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.
In 2018, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.
Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle:
- Artesian Water Co. customers will see an average usage billing cycle savings of $2.35 per bill, a 4.58 percent bill savings, for a yearly residential customer savings of $28.20.
- Long Neck Water Co. customers will see an average usage billing cycle savings of $2.04 per bill, for a yearly residential customer savings of $24.48.
- Suez Water customers will see an average usage billing cycle savings of $1.71 per residential bill, a 4.5 percent bill savings, for a yearly residential customer savings of $20.52.
- Chesapeake Utilities customers will see an average usage billing cycle savings of $1.52 per residential bill, a 1.57 percent bill savings, for a yearly residential customer savings of $18.20.
- Sussex Shores customers will see an average usage billing cycle savings of $1.71 per residential bill, for a yearly residential customer savings of $6.84, billed quarterly.
- Tidewater Utilities customers will see an average usage billing cycle savings of $8.17 per residential bill, a 4.21 percent bill savings. for a yearly residential customer savings of $32.68, billed quarterly.
Broadkill Beach, Wilkerson Water Co. and Inland Bay and Artesian Wastewater Management Inc. customers will not see a change, as these utilities did not collect more than 21 percent federal tax prior to the enactment of the Tax Cuts and Jobs Act.
In January 2018, the Public Service Commission granted the Delaware Public Advocate’s petition to reduce the rates of all regulated utilities due to the reduction of the federal corporate tax rate from 35 percent to 21 percent. The Jan. 31 decision is the culmination of the PSC’s efforts to reduce the rates for customers of regulated utilities in Delaware. Overall, the rate reduction to Delaware’s regulated utilities totals more than $18 million.
“These are substantial savings for all regulated utility customer classes and especially the residential sector. I want to thank the commission for approving our petition to reduce rates last year, the 38 members of the General Assembly for their support of that petition, led by Reps. John Kowalko and Kim Williams, and for today’s approval of the final rate reduction due to the Tax Cuts and Jobs Act of 2017,” said Drew Slater, public advocate. “These reductions, coupled with the overall reduction from Delmarva Power’s electric and natural gas rate cases, have ensured all excess taxes flow back to customers in the form of reduced rates.”
The Delaware Public Service Commission works to ensure safe, reliable and reasonably priced electric, natural gas, wastewater and water services for Delaware customers. The PSC is made up of five part-time commissioners, appointed by the governor and confirmed by the senate. The commissioners are supported and assisted by a staff of full-time state employees.
The Division of the Public Advocate advocates for the lowest reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes of consumers.