Atlantic City Electric has filed plans with the New Jersey Board of Public Utilities to pass $22.7 million in federal tax savings to customers, the utility said Tuesday.
The BPU recently ordered all utilities in the state to refund savings to customers, saying the recently passed Federal Tax Cuts and Jobs Act reduces utilities’ corporate tax rate from 35 percent to 21 percent, and ratepayers should benefit.
Under Atlantic City Electric’s plan, the typical residential customer would see a $1.38 decrease in the monthly bill beginning April 1, rising to a decrease of $2.37 starting July 1, the utility said in a press release.
The BPU has said it will review the impact of the federal tax savings on utilities to be sure ratepayers receive the appropriate amounts.
“We are pleased that we have the opportunity to provide our customers with meaningful savings,” said Vince Maione, Atlantic City Electric region president. “These savings will help offset the rate changes that have been essential to our efforts in providing safe and reliable service for our customers.”
Last May ACE got BPU approval to spend $79 million on upgrades and new infrastructure for its electric grid.
Over the five years of the PowerAhead program, rates will gradually change as individual projects are completed and are serving customers, ACE said. It will result in a rate increase for a typical residential customer using 716 kilowatt hours per month of 0.38 or 0.49 percent, after all projects are completed, the company said.
The first rate adjustment was not expected before July.
During the past five years, the number of electric outages has decreased by more than 40 percent and outage length has been reduced by 18 percent, ACE said. In 2017, ACE customers saw the lowest average number of electric outages and the fastest restoration times in the company’s history, the press release said.
ACE, a public utility owned by Exelon Corp., provides regulated electric delivery services to about 550,000 customers in southern New Jersey, according to the company.