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Maryland Public Service Commission Orders Utilities to Account for Federal Tax Reform Savings

January 12th, 2018 by WCBC Radio

The Maryland Public Service Commission has launched a proceeding to explore how electric, gas, telecommunications and water utility customers can benefit from the federal Tax Cuts and Jobs Act of 2017 (TCJA), which went into effect on January 1, 2018. The lowering of the corporate tax rate from 35% to 21% could result in savings to utility companies that can be passed on to utility customers in the form of lower rates. In order to examine the impacts of the TCJA on the rates and charges of Maryland utilities, the Commission has directed all Maryland gas, electric, incumbent local exchange telephone companies and water companies whose rates are explicitly grossed up for taxes, to track the impacts beginning January 1, 2018. The companies must file with the Commission by February 15, 2018, an explanation of the expected effects of the impacts of the TCJA on their expenses and revenues, and explain when and how they expect to pass through those effects to their customers.

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