WASHINGTON — BGE says it will file with the Maryland Public Service Commission to pass on its reduced tax burden, thanks to the federal tax overhaul, to its customers.
BGE says the Tax Cuts and Jobs Act, which reduced the corporate tax rate from 35 percent to 21 percent, will reduce is annual tax bill by approximately $82 million.
If approved by the PSC, the average BGE residential electric customer would see a $2.31 decrease in their monthly bill, and residential combined natural gas and electric customers would see their bill drop by an average of $4.27 a month.
Pending approval, the monthly reduction would go in effect in February.
“Reduced tax costs create an opportunity for BGE customers to benefit from further decreases in their total energy bills,” said Calvin G. Butler Jr, chief executive officer of BGE.
“Even before the tax reductions, the long-term trends of customers using significantly less energy and the declining costs of natural gas and electricity commodities have resulted in the average BGE residential customer’s total monthly bill remaining lower than 2008 levels.”
Baltimore-based BGE, a subsidiary of Exelon Corporation, has 1.25 million electric customers and more than 650,000 natural gas customers in Central Maryland. The company employs about 3,200 workers.