D.C. (Jan. 5, 2018) – Pepco today announced they will file
with the Public Service Commission of the District of Columbia in early
February, outlining plans to provide annual tax savings to more than 296,000
electric customers in the District of Columbia. If approved, Pepco would plan
to begin providing a credit lowering customer bills starting 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
on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the
Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal
income tax Pepco will have to pay.
“The tax law will result in lower bills for our customers
and lower taxes for Pepco,” said Dave Velazquez, President and CEO, Pepco
Holdings, which includes Pepco. “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.”
Ultimately, the Public Service Commission of the District of
Columbia will determine how the tax benefits will be provided to customers.