The Tax Cuts and Jobs Act reduced tax costs for energy companies, and the Delaware Public Service Commission has approved a settlement passing along Delmarva Power’s savings to its consumers.
The utility initially requested a rate increase to repay $31 million the company is spending on the local energy grid. Officials say the improvements have helped decrease electric outages over the past five years by 35%.
That increase would have cost the average electric consumer an extra $65 annually to pay for the improvements.
But a petition from Delaware’s Public Advocate at the beginning of the year to pass tax cut savings on found wide public support, leading to the commission’s decision to decrease electric bills by approximately $7 million.
The average consumer will save $1.40 a month.
According to Delmarva Power, customers will also see a variety of one-time and ongoing credits and refunds on their electric bill.
New rates are set to go into effect within 30 days.