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Tuesday, January 09, 2018

Trump cuts utility rates in DC

Now this is awkward. A town in which he received only 4% of the vote is about to become a big beneficiary of President Trump's Tax Cuts and Jobs Act of 2017.

Not only will DC residents enjoy huge federal income tax cuts, but their electric bills will shrink thanks to Trump's actions.



It is the strangest thing.

The Potomac Electric Power Company -- Pepco -- is asking regulators to let it drop its prices.

From Pepco:
Pepco today announced they will file with the Public Service Commission of the District of Columbia in early February, outlining plans to provide annual tax savings to more than 296,000 electric customers in the District of Columbia. If approved, Pepco would plan to begin providing a credit lowering customer bills starting in the first quarter of 2018.
The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Pepco will have to pay. 
“The tax law will result in lower bills for our customers and lower taxes for Pepco,” said Dave Velazquez, President and CEO, Pepco Holdings, which includes Pepco. “We are pleased to provide these savings to our customers, while at the same time ensuring we are making prudent investments in the local power grid to maintain the safe, reliable, and affordable service our customers have come to expect.”
Ultimately, the Public Service Commission of the District of Columbia will determine how the tax benefits will be provided to customers.
Other utilities are following suit.

From the Baltimore Sun:
Baltimore Gas & Electric Co. plans to pass on about $82 million in tax savings to customers as a result of the federal tax reform passed by Republicans in December that lowered the corporate tax rate.
The Baltimore-based utility announced the pending rate cuts Friday, saying the average residential electric customers can expect their monthly bill to decrease by $2.31 beginning in February. Bills will go down by an average of $4.27 a month for customers who buy both electricity and natural gas from BGE.
“For us it was real simple,” said BGE CEO Calvin G. Butler Jr. . “We wanted to share those benefits with consumers.”
The savings would represent a bill reduction of up to 5.2 percent, but the move requires approval from the Maryland Public Service Commission, which regulates utilities.
Thus, at a minimum, the federal corporate tax rate of 35% was adding 5% to the electric and gas bills of people in Baltimore.

People in other blue states can expect to gain thanks to President Trump's tax cuts.

From the Bangor Daily News:
Consumer advocates in New England are calling on regulators and utilities to turn over to ratepayers any savings from a reduction in the corporate income tax rate, which the recent tax law knocked down by 40 percent.
“Nobody really saw it until the very end of the process, that this little piece of it would allow these savings to be passed on directly to consumers,” says Don Kreis, New Hampshire’s consumer advocate.
Kreis says in most cases, for-profit utilities’ federal taxes are actually covered by their customers. So the tax cut could make a real dent in the portion of utility bills residents and businesses pay for the distribution lines that take electricity from the regional grid to their locations.
“You could be looking at something that could reduce the electric bill paid by a residential customer over the course of a year in the $100 range. That’s a significant amount of money to a customer that has to worry about how much her electric bill is,” he says.
For years, conservatives have said companies don't pay taxes, they just collect them.

Here's proof.

The beauty of Trump's tax cuts is that he is not giving away money.

He is allowing people to keep more of the money they earn,

@@@

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The first was "Trump the Press," which covered his nomination.

The second was "Trump the Establishment," which covered his election.

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9 comments:

  1. You know, it's called "trickle down" economics!! :)

    ReplyDelete
    Replies
    1. When Reagan cut taxes to stimulate growth, the Bushpublicans came up with that term, as well as "voodoo economics," to discredit him. Who's laughing now, neocons?

      Delete
  2. They all hate Trump so much down that way, surely they’ll refuse the dough.

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    Replies
    1. They'll take it, Dave, but they'll STILL HATE Trump. They DO LOVE money.

      Delete
  3. Pacific Gas and Electric won't give back a penny. Absurdly high rates, too.

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    Replies
    1. I was thinking the same thing. It wouldn't surprise me if our rates went UP, so that the utility can field some lawyers to fight this rate decrease, "for our own good."

      These guys think we use too much electricity already, and that no one should use more than a Kenyan farmer!

      Delete
  4. So even the Obama's, living in their big Kalorama mansion, will benefit from Trump's economic and tax policies.

    ReplyDelete
    Replies
    1. Yeah, but they’ll need to keep replacing that cellphone his ex-Prezness keeps dropping to a repeatedly disappointing effect.

      Delete
  5. This is great -- for customers who have been paying the tax.
    Also for economists to show how customers always pay the "corp. taxes", altho it's usually less visible.

    I haven't seen the news saying -- "the poor benefit the most by cost reductions", showing the big %increase in their disposable income. (1%?)

    ReplyDelete