Virginia Natural Gas to lower rates to reflect tax savings

Virginia Natural Gas recently lowered its rates by $13.9 million to reflect tax expenses savings from the recent Tax Cut and Jobs Act of 2017.

The typical Virginia Natural Gas residential customer using approximately 50 CCF each month will see their annual bills reduced by roughly $33. The changes took effect on Jan. 1.

“Every customer deserves reliable energy at a price they can afford,” Jim Kibler, president of Virginia Natural Gas, said. “The benefits of the tax law lowered tax expenses for the company, a savings we are pleased to share with our customers, and I’m happy to report we will be able to lower rates more than originally anticipated.”

In December, the Virginia State Corporation Commission (VSCC) approved a $12.4 million decrease for Virginia Natural Gas, applicable to customers that are not state or federal government agencies or those considered jurisdictional and subject to VSCC oversight.

Virginia Natural Gas will also refund $13.9 million for customers’ usage in 2018. The refund will account for the time between when the federal tax reform law took effect and when the rate reduction became effective. Refunds will vary by customer dependent on their usage during 2018.