State utility regulators say the tax cuts that President Trump signed into law late year will result in lower Appalachian Power bills as of July. The federal corporate income tax rate fell from 35 to 21 per cent, and the State Corporation Commission says it is ensuring that Virginia’s largest electric utilities pass those savings on to customers.
News release: The State Corporation Commission (SCC) is ensuring that Dominion Energy Virginia and Appalachian Power Company reduce rates in July so that their respective customers receive the benefits of the corporate tax cut contained in federal tax legislation passed by Congress in December 2017. The federal corporate income tax rate was reduced from 35% to 21% effective January 1, 2018. A week later, on January 8, the SCC ordered the companies to preserve the savings from this tax cut for the benefit of their customers. The July rate reduction is the first step to pass the corporate tax savings to customers. Further submissions by the two utilities will be made in 2019 to make certain the tax savings are properly calculated and reflected in rates as of April 1, 2019.