Press Release

PUC Continues Analysis of Federal Tax Reform on Commission-Regulated Utility Rates & Consumers; Issues Temporary Rates Order

Published on 3/15/2018

Filed under: Electric Gas Water and Wastewater Telecommunications Transportation and Safety

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued a Temporary Rates Order, in conjunction with the ongoing review of how the federal Tax Cuts and Jobs Act (TCJA) may affect the rates of PUC-regulated utilities and the ratepayers of Pennsylvania.

Today’s order, which was approved by a 5-0 vote, is part of the PUC’s ongoing efforts to determine how the reduced annual tax obligations may be addressed in rates charged to ratepayers by public utilities. The rates charged by Commission-regulated public utilities to their ratepayers reflect, among other things, annual taxes paid both to the federal and state governments. 

The order notes that the process for final resolution of this matter will require further review and analysis. While the Commission will process this matter as promptly as possible, given the complex nature of the tax law changes and the numerous public utilities involved, it is not certain as to when the issues in this matter will be finally resolved for each of the affected public utilities. 

Under the circumstances, the Commission today moved to declare the current rates and riders of affected utilities to be temporary rates – maximizing the PUC’s authority to establish refunds, negative surcharges or other rate adjustments that are deemed to be necessary, just and reasonable, in response to federal tax rate reductions.

A full list of the utilities impacted by today’s PUC order has been posted to the online docket for this matter: M-2018-2641242.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: M-2018-2641242

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov