by WorldTribune Staff, June 8, 2018
As air conditioning season kicks into gear, a large number of Americans will see relief from the heat in the form of lower electric bills.
Following tax cuts proposed by President Donald Trump and passed by the Republican Congress, 101 public electric, gas and water utilities are lowering their customers’ bills.
The total savings is estimated at about $3 billion, while hundreds of millions more of added utility expenses won’t be passed on to customers, according to Americans for Tax Reform.
The Tax Cuts and Jobs Act cut the corporate tax rate from 35 percent to 21 percent.
Several utility companies directly cited the act in their decision to cut rates.
“Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to the cost of restoring power after Hurricane Irma and several other earlier named,” said Tampa Electric.
“We’re working to ensure that our customers receive timely benefits from the new tax reform legislation,” said Charles Rice, president and CEO of Entergy New Orleans. “We’re glad to pass on these additional savings by reducing rates below what they otherwise would be, especially during the hot summer months when energy use rises along with the thermometer,” he added.
Grover Norquist, president of Americans for Tax Reform, warned that “When Democrats threaten to raise taxes if they get back into power they are threatening to raise your utility bill – month after month.”