RICHMOND, Va. – A ruling 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 rates reduction is part of a directive of the Commission issued in January 2018 that ensures customers receive the benefits of the corporate tax cut contained in federal tax legislation passed by Congress in December 2017, according to officails.
The federal corporate income tax rate was reduced from 35% to 21% effective January 1, 2018. This reduction was followed by the SCC ordering companies to preserve the savings from this tax cut to benefit customers.
Dominion Energy Virginia reduced rates by $125 million, on an interim basis subject to further Commission review. Appalachian Power reduced rates by $50 million last July, also subject to further review, according to the SCC.
Both Dominion Energy Virginia and Appalachian Power submitted additional filings with the Commission to make certain the tax savings are properly calculated and reflected in base rates as of April 1, 2019.
Dominion Energy Virginia’s base rates are being reduced by $182.5 million, or $57.5 million more than the interim rate reduction last July. Appalachian Power’s base rates are being reduced by $80.1 million, or $30.1 million more than last July.
Each company will be providing a one-time credit to customers to account for the difference in rates between January 1, 2018, effective date of the Federal tax reduction and March 31, 2019, the last day of interim rates.
Dominion Energy Virginia must provide the one-time credit by July 1, 2019. Appalachian Power Company must provide the one-time credit by October 1, 2019.
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