The rate change will be offset by the recent Tax Cuts and Jobs Act, resulting in a less than 1% increase on customer bills. I also want to inform you that, in January 2019, customers will see a credit for tax savings resulting from the Act. For a typical residential customer using 700 kWh per month, monthly bills will also see a one-time credit in January 2019 of about $35 due to tax savings from the Act. For a typical small commercial customer, this will result in a one-time reduction of about $140 on the January 2019 bill. For a typical large commercial customer, this credit will be refunded monthly over the next 12 months and will result in approximately a $114 reduction per month.
The approved filing also provides for a number of new initiatives designed by PECO. These programs will promote economic development and new technologies, and help low-income customers in our territory, including:
- A new rate structure for electric vehicle DC fast chargers to encourage deployment of infrastructure to support vehicle electrification,
- Enhancements to economic development rates to attract both manufacturing and service-based industries, and
- Enhancements to our low-income programs including additional energy efficiency spending, improvements to enrollment processes and other administrative improvements.
We will also be introducing new smart street lighting rates to support conversion to energy efficient LED lighting. Please look out for an invitation to one of our upcoming street Lighting Forums featuring speakers on smart communities, LED retrofits, and energy efficiency incentives for municipalities.
We’re happy to be able to provide the tax savings to PECO customers in 2019, while investing in our system at the lowest cost possible, as we continue to deliver safe and reliable energy services to our region.