The Maryland Public Service Commission has launched a process to assess how electric, gas, telecommunications and water utilities can pass on savings from the new tax law to their customers.
The lowering of the corporate tax rate from 35 percent to 21 percent is expected to provide substantial savings to utility companies.
The PSC has ordered all Maryland gas, electric, incumbent local exchange telephone companies and water companies whose rates are grossed up for taxes to track the impacts beginning Jan. 1. The companies must file with the commission by Feb. 15 an explanation of the expected effects of the tax law on their expenses and revenues and how they expect to pass through those savings on to customers.
“The commission’s goal is to ensure that, in light of the tax reform measure, the rates that utility customers are paying are, in fact, just and reasonable, as required by Maryland law — and to pass on savings to customers as soon as possible,” said Commission Chairman W. Kevin Hughes.
Baltimore Gas and Electric Company, Washington Gas Light Company, Potomac Electric Power Company, and Delmarva Power and Light Company have made filings or indicated they will soon make filings to reduce their rates.