Important Information Regarding 2019 Non-Residential Bills

10/24/2018

As non-residential customers prepare budgets for 2019, we want to remind you about an important line item on your electricity bill, the Tax Cuts and Jobs Act Credit. The Tax Cuts and Jobs Act Credit, which began in April 2018, will be substantially reduced in January 2019 on non-residential customer bills as it reaches its expiration period.

The new federal corporate tax rate of 21 percent (down from 35 percent) will continue to be in effect into 2019. However, the temporary credit on your bill is not for the tax rate reduction itself. Rather, it has been the means for returning to customers a reserve of $466 million, specifically from April 2018-December 2018 that had accumulated under the old tax structure. The majority of the reserve amount will have been returned to industrial, commercial and business customers by the end of this year, and thus the credit will be substantially reduced. Going forward, the lower corporate tax rates will simply be included as one of the components of the Formula Rate Plan rider calculation.

Again, this is only for non-residential customers. Residential customers will continue to see the TCJA line item on their bills through December 2019.