The Public Service Commission of the District of Columbia has opened a single-issue rate proceeding to determine the impact of the Tax Cuts and Jobs Act of 2017 on the amount of reductions that are justified for Pepco’s and Washington Gas’s current distribution service rates.
The act lowered the corporate federal tax rate from a maximum of 35 percent to a maximum of 21 percent which was recently passed by Congress and signed by President Trump.
The Commission has directed Pepco and Washington Gas to track the impact of the act on their corporate taxes until a decision has been made as to the appropriate amount of the reductions in the distribution service rates.
Pepco and Washington Gas have been asked to file their respective rate reduction proposals by Feb. 12.