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RICHMOND, Virginia – A decision by the State Corporation Commission (SCC) will reduce energy rates for customers of Dominion Energy Virginia and Appalachian Power Company on April 1, 2019.
The tariff reduction is part of a Commission directive issued in January 2018 which ensures the benefits to customers of the reduction of corporate tax contained in the federal tax legislation passed by Congress in December 2017 , according to officials.
Each company will also grant customers a single credit corresponding to the rate difference between January 1, 2018, effective date of the federal tax reduction and March 31, 2019, the last day of the rates. intermediate.
The federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018. This reduction was followed by the CCS, ordering companies to preserve the savings resulting from this reduction. tax for the benefit of customers.
Dominion Energy has reduced rates by $ 125 million, provisionally, subject to further review by the Commission. Appalachian Power reduced its rates by $ 50 million last July, also subject to review, according to the CSC.
Both Dominion Energy and Appalachian Power have filed additional filings with the Commission to ensure that the tax savings are properly calculated and reflected in the base rates effective April 1, 2019.
Dominion Energy base rates are reduced by $ 182.5 million, $ 57.5 million more than the July interim rate reduction. Appalachian Power base rates were reduced by $ 80.1 million, $ 30.1 million more than last July.
"The April 1 tariff cut could be around 55 cents / month," said SCC Director Ken Schrad. "The July 1, 2018 reduction was about $ 2.60 / month."
So how much money could customers get back with their Dominion bills?
"It is difficult to calculate with certainty because part of the reduction occurred on July 1, 2018 and the rest on April 1," said Schrad. "For Dominion, a very rough estimate of the one-time credit for the mythical residential customer using exactly 1,000 kWh / month can be $ 20 to $ 25, which will appear on the customer's bill by July 1."
Appalachian Power Company must provide the one-time credit by October 1, 2019.
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