A new report finds that electric, gas, and water rates have fallen across the country due to the tax cuts put in place by President Donald Trump and the GOP.
The review of 102 utilities across the nation by Americans for Tax Reform (ATR) finds that Trump’s tax cuts mean “lower utility bills for Americans.”
“The Tax Cuts and Jobs Act cut the corporate rate from 35% to 21%. Utility companies are passing on the tax savings in the form of lower rates for customers,” ATR wrote on June 7.
ATR went on to detail the rate reductions in states such as Florida, Ohio, Michigan, West Virginia, thirty-seven other states, and the District of Columbia.
For instance, the low-tax advocacy group found that Tampa Electric in Tampa, Florida, announced the company would not raise rates to pay for its work to restore facilities due to the destruction Hurricane Irma caused because the tax cuts helped make up the difference.
“Because of recent changes made to the federal tax law, customers will directly benefit,” Tampa Electric told customers. “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. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019.”
The report noted that Cincinnati-based Duke Energy Ohio would also keep rates low due to the tax cuts. The company told customers, “Customers will receive approximately $20 million in annual tax savings on their electric bills beginning this month.”
“The tax act provides a unique opportunity for us to reduce customers’ bills by millions of dollars,” said Jim Henning, president of Duke Energy Ohio and Kentucky. “And that’s exactly what we’re doing here – delivering real savings to our customers.”
Other companies, such as Consumers Energy in Jackson, Michigan; the Appalachian Power Company in Milton, West Virginia; and Entergy New Orleans in New Orleans, Louisiana, also announced rate reductions or an end to previously announced hikes because of the Trump tax cuts.
Thus far, ATR has found 102 utility companies that have lowered rates or ceased rate hikes due to President Trump’s tax cuts.
Follow Warner Todd Huston on Twitter @warnerthuston.