Baltimore Gas and Electric Co. customers will see their gas and electric bills drop this month as the utility company cuts rates in response to the federal tax overhaul.
The Maryland Public Service commission on Tuesday accepted the utility company’s proposal to lower average monthly rates by an estimated $2.91 for electric customers and $5.41 for natural gas and electric customers, as a result of the federal tax reform passed by Republicans in December, the company said.
The total customer savings will amount to roughly $103 million, BGE said.
The Tax Cuts and Jobs Act, which took effect Jan. 1, slashed the corporate tax rate from 35 percent to 21 percent. The Baltimore-based company first announced its plans to cut rates Jan. 5.
“This is a positive outcome for BGE customers, and we are appreciative of the Public Service Commission’s decision to accept our proposal to convert tax savings to reduced rates," BGE CEO Calvin G. Butler Jr said in a statement. "We are pleased to have another opportunity to further reduce the average BGE residential customers’ total bills, which remain below levels from a decade ago.”