PUCO approves Dominion Energy Ohio rate reductions due to tax cuts

The Public Utilities Commission of Ohio (PUCO) adopted an agreement Wednesday that allows Dominion Energy Ohio (Dominion) to create a credit on gas customer bills to reflect the impact that the Tax Cuts and Jobs Act (TCJA) of 2017 had on its rates.

Dominion will credit residential customers the amount it over-collected, plus interest, since Jan. 1, 2018, under the previous corporate tax rate. The company will pass the $50.9 million credit back to customers over 12 months.

Dominion will return approximately $18.9 million to customers annually on a going-forward basis until the Commission approves updated rates through a distribution rate case. This number reflects the remaining tax savings not currently accounted for in rates.

Dominion expects to file an application with the PUCO for its next distribution rate case in 2024.

The company will return to customers normalized excess deferred income tax (EDIT) estimated to be approximately $416 million over a federally prescribed time period of roughly 38 years.

Dominion will credit customers non-normalized EDIT, estimated at approximately $181 million, over approximately six years.

Residential customers will see a bill reduction of approximately $5.80 per month for the first year, a $3.15 reduction in years two through six, and a $1.55 reduction in year seven and beyond.