Companies seeing windfalls from the Trump Administration-backed tax cuts have touted bonuses, wage hikes and other economic benefits of the legislation that slashed corporate tax rates and reduced income taxes for most Americans.
The proposed rebates to Georgia Power customers come from several buckets
About $330 million is expected to come from direct credits to ratepayers because of lower federal tax rates the company will pay over the next two years. Another $130 million in savings to customers will come from reduced taxes related to costs to finance two new nuclear reactors at Plant Vogtle in east Georgia.
Customers have financed construction of the units in Waynesboro, near Augusta, since 2009. The pair of reactors are billions of dollars over budget and years behind schedule.
The state Public Service Commission in recent months approved a new path to continue construction of the reactors, and that plan also included some rebates to consumers, though the plan to move forward has been challenged in court by consumer groups.
About $44 million will be refunded to customers because Georgia Power earned more in 2016 than its allowed range of profits for that year. The utility said the rebate for profits over the allowable range will result in about a $9.50 credit to customers in March.
The company projects about $700 million in future savings could flow to customers as part of the company’s next rate negotiations, which are scheduled for 2019. That figure would need to be approved by the state Public Service Commission.
In April, the typical customer will see a reduction in their monthly bill of about $2.70 related to the tax law and Vogtle financing costs.
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