COLUMBUS, OHIO (Dec. 4, 2019) – The Public Utilities Commission of Ohio (PUCO) today adopted an agreement that authorized Dominion Energy Ohio (Dominion) to establish a credit on gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates.
Dominion will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rate. The $50.9 million credit will be passed back to all customers over a 12 month period.
Dominion will return to customers annually approximately $18.9 million, which reflects the remaining tax savings not currently accounted for in rates, on a going-forward basis, until the Commission approves updated rates through a distribution rate case. Dominion is expected to file an application with the PUCO for its next distribution rate case in 2024.
Dominion will return to customers normalized excess deferred income tax (EDIT), estimated by the utility to be approximately $416 million, over a federally prescribed time period of approximately 38 years.
Dominion will credit customers non-normalized EDIT, estimated by the utility to be approximately $181 million, over approximately a six-year period.
A residential customer will see a bill reduction of approximately $5.80 per month for the first year, a $3.15 reduction in years two through six and a $1.55 reduction in year seven and beyond.
On Jan. 10, 2018, the Commission ordered an investigation to study the impacts of the TCJA on PUCO-regulated utilities and how best to pass on the benefits to customers and directed utilities to set aside money in excess of the reduced tax rate to later be returned to customers.
The TCJA was signed into law on Dec. 22, 2017, which among other things, reduced the federal corporate income tax rate from 35 to 21 percent, effective Jan. 1, 2018.
On Dec. 31, 2018, Dominion filed an application to adopt a new tariff to pass to customers the savings due to the TCJA.
On March 5, 2019, PUCO staff filed its review and recommendations.
On Oct. 31, 2019, a settlement agreement was filed by Dominion, PUCO staff and the Ohio Consumers’ Counsel.