AEP Ohio users in Highland County can expect to save about $3.65 on their monthly electric bill beginning in November due to a recently approved agreement returning the proceeds of federal tax cuts to AEP customers.
AEP spokesman Scott Blake told The Times-Gazette that the kickback represents $607 million in savings that are a direct result of the Tax Cut and Jobs Act.
According to the Associated Press, the Public Utilities Commission of Ohio on Wednesday approved a settlement returning proceeds of the federal tax cut to customers of AEP, which is headquartered in Columbus.
Chairman Asim Haque called the settlement “good news,” and attributed the deal to commissioners’ insistence that utility companies begin tracking what they were overcollecting when using delivery rates developed under the previous 35-percent federal tax rate, rather than the new 21-percent rate.
Blake said customers who use about 1000 kilowatt hours per month can expect about $3.65 to be taken off their bills due to the agreement.
“Since the tax reforms were passed, our focus has been on ensuring that our customers benefit from those savings,” Blake said. “We’re happy that the commission quickly approved the settlement and that we can begin passing the savings along to our customers.”
AEP agreed to return customers $278 million for certain tax deferrals over 25 years and another $178 million over six years. The company also will add $20.4 million in tax savings per year toward its next rate adjustment.
The agreement also calls for AEP to contribute $1 million annually from 2018 through 2021 to assist low-income customers.
The Associated Press contributed to this report. Reach David Wright at 937-402-2570.