A tax cut pushed by President Donald Trump and passed by Congress in 2017 continues to benefit customers of Appalachian Power Co. in Virginia.
Eligible customers will receive a one-time credit on their next bill that amounts to about $22.50 for a home that uses 1,000 kilowatt-hours of electricity per month, Appalachian said in a news release.
The break comes from a portion of the federal legislation that slashed the corporate income tax rate from 35% to 21% percent effective Jan. 1, 2018 — and a notice from Virginia’s State Corporation Commission that regulated utilities such as Appalachian would be required to pass their savings on to customers.
Since then, customers have seen three changes.
In July 2018, Appalachian announced that it was cutting bills for the average residential account by about 6%, or $4.83 a month for someone who uses 1,000 kilowatt-hours of electricity, to reflect an initial savings estimate of $80 million.
Then in October, the utility decided to credit its 500,000-some Virginia customers on an accelerated basis for another $55 million, which was offset by an increase in the fuel rate portion of their bills that took effect at the same time.
A final accounting later showed that Appalachian saved another $22 million in reduced corporate taxes, which was the basis for the one-time credit announced Wednesday.
The credits will be calculated on a customer’s individual use from Jan. 1, 2018, to March 31, 2019.
Currently, the average residential customer of Appalachian pays $110.79 a month for 1,000 kilowatt-hours, or about 11 cents per kilowatt-hour, the utility said. The U.S. average is 13 cents per kilowatt-hour, according to the Edison Electric Institute.