The Potomac Electric Power Company, also known as Pepco, which supplies electric power to almost a million customers in Washington, D.C., and Maryland, has announced that it plans to cut rates due to the Tax Cuts and Jobs Act.
Pepco released a statement indicating that it planned to cut rates for around 296,000 Washington customers due to the lower tax rate:
Pepco says it will lower electric bills for almost 300,000 ratepayers in D.C., largely because its corporate tax rate was slashed from 35 to 21 percent in GOP tax bill. pic.twitter.com/St9Vym5ILF
— Martin Austermuhle (@maustermuhle) January 9, 2018
In a statement, Pepco specifically credits the savings realized as a result of the Republican tax reform bill for the planned rate cut. Pepco’s CEO Dave Velazquez said, “The tax law will result in lower bills for our customers and lower taxes for 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.”
Because Pepco is a regulated monopoly, its planned rate reduction will have to be approved by the Public Service Commission for the District of Columbia.
While the long-term effects of the tax bill will not be known for some time, Pepco’s decision is the latest indication that the lower corporate tax rate in the Tax Cuts and Jobs Act will have some immediate benefit for middle-class families.
All told, more than 30 U.S. businesses have announced that they will raise either wages or benefits for their workers due to the Tax Cuts and Jobs Act, including Southwest Airlines, Aflac, Wells Fargo, and others.
The Tax Cuts and Jobs Act passed without a single Democratic vote in either the House or Senate.