Why your ComEd bill might be going down
ComEd reported the company is filing a petition Friday to cut residential electrical bills by between $2 and $3 as a result of the federal tax reduction.
ComEd is filing with the Illinois Commerce Commission seeking approval to pass along approximately $200 million in tax savings to its customers in 2018. If the petition is approved by the ICC, the average ComEd residential customer can expect to see an estimated $2 to $3 decrease on the monthly bill.
The Tax Cuts and Jobs Act, which was signed into law on Dec. 22 and became effective on Jan. 1, decreased the corporate tax rate from 35 percent to 21 percent, reducing the amount of federal income tax ComEd will have to pay.
A new rate case process, established by the Illinois General Assembly in 2011 with passage of the Smart Grid law, ensures that cost savings such as these are passed on to ComEd customers.
The ICC is moving expeditiously to oversee the process so customers can obtain the lower costs beginning in the first quarter of 2018, rather than 2020.
"ComEd is able to promptly provide Illinois customers with the benefits of the federal tax reduction as a result of the fast action of the Illinois Commerce Commission and the new rate case design introduced by the Illinois General Assembly in the 2011 Smart Grid law. The Smart Grid law has delivered best on record reliability, thousands of jobs and now the prompt return of tax reduction benefits to Illinois consumers," said Anne Pramaggiore, ComEd President and CEO.
Assuming approval by the commission, ComEd will begin to reflect the benefits of the tax savings as early as first quarter 2018 through reduced costs on bills.