CHICAGO--(BUSINESS WIRE)--The Illinois Commerce Commission (ICC) today approved ComEd’s petition seeking approval to pass along approximately $200 million in tax savings to its customers in 2018. ComEd residential customers can expect to see an estimated $2-$3 decrease on the average monthly bill specifically related to the tax savings.
ComEd’s voluntary proposal was prompted by the Tax Cuts and Jobs Act (TCJA) that went into effect Jan. 1, 2018. The new law decreased the corporate tax rate from 35 percent to 21 percent, reducing the amount of federal income tax ComEd will pay and creating savings that it is passing along to customers. ComEd expedited the filing of its plan with the ICC and the Commission’s prompt response will enable customers to see the savings beginning in February. Without action by ComEd, customers would not realize savings from the tax cut until 2020.
“The new tax plan presented an important opportunity to work with our regulators and stakeholders to produce a solution that accelerates the delivery of real savings to our customers,” said Anne Pramaggiore, president and CEO, ComEd. “We’re grateful to the ICC for their rapid action and the positive outcome.”
With the enactment of the Smart Grid Law in 2011, the Illinois General Assembly established a performance-based formula ratemaking model that ensures cost savings such as those incurred through TCJA are passed on to ComEd customers. ComEd is nearing completion of the smart grid program and will complete the installation of nearly 4 million smart meters this year. The utility is delivering record reliability, with a 50-percent reduction in outages, shorter outage duration and the highest customer satisfaction on record. Total customer bills remain stable and residential rates, through June 2017, were nearly 20 percent below the average of the 10 largest American cities.
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC), the nation’s leading competitive energy provider, with approximately 10 million customers. ComEd provides service to approximately four million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter and YouTube.