Washington Gas said this week it will file with state regulators in its three service territories, including the District of Columbia, Maryland, and Virginia, to pass through roughly $34 million in annual tax savings to more than 1.1 million customers.
If the recommendations are approved, the natural gas utility will begin lowering customers’ bills beginning in the first quarter of 2018, Kallanish Energy learns.
The federal tax savings are driven by the Tax Cuts and Jobs Act of 2017, the law passed on Dec. 22, that went into effect on Jan. 1. Reducing the corporate income tax rate from 35% to 21% lowers the amount Washington Gas will have to pay in federal income tax.
“We are pleased to pass along the savings from the reduction in corporate tax rates to our customers,” said Terry D. McCallister, chairman and CEO of the utility and its parent company WGL Holdings.
Washington Gas expects to file with the Public Service Commission of the District of Columbia, the Maryland Public Service Commission, and the Virginia State Corporation Commission this week, and each commission will establish how the benefits of the tax reduction will be distributed to customers.