Georgia Power completes assessment of Tax Cuts and Jobs Act impact
Georgia Power recently completed an assessment of the impact of the Tax Cuts and Jobs Act, which includes approximately $1.2 billion in benefits for customers.
The Georgia Public Service Commission (PSC) Staff confirmed the benefits as part of an agreement with Georgia Power.
The benefits include approximately $130 million in lowered taxes on financing costs for the Vogtle nuclear expansion and $330 million in direct credits to customers due to lower federal income tax rates over the next two years. They also include approximately $700 million in future benefits that will be addressed in the company’s next base rate case in 2019, which also includes the benefits of the recent reduction in income tax rates in the state of Georgia.
If approved by the Georgia PSC, the typical residential customer consuming an average of 1,000 kilowatt-hours per month could receive approximately $70 in refunds over the two-year period.
“We are committed to offering the highest customer value with rates below the national average, and we’re pleased to be able to continue to pass the benefits of the new tax laws on to our customers,” Paul Bowers, chairman, president and CEO of Georgia Power, said. “We appreciate the collaborative effort with Georgia PSC Staff to evaluate the new tax laws and reach a joint agreement, which we hope the Commission will review and approve as the best way to deliver benefits to customers as quickly as possible.”
In January, Georgia Power announced a cost reduction for customers of $139 million in 2018 for the Vogtle nuclear expansion, which is currently under construction, due to changes in federal tax laws and full receipt of parent guarantee payments from Toshiba.
