102 Utility Companies Lowering Rates Due to Tax Reform

A woman adjusts a thermostat
Photo by SpeedKingz / Shutterstock.com

You would expect federal tax cuts to have positive effects like smaller tax bills and perhaps bigger paychecks. But the tax code overhaul that became law in December has also led to some unexpected benefits.

For example, earlier in the year, some employers made headlines for handing out bonuses or boosting workers’ retirement benefits as a direct result of tax reform — which slashed the corporate tax rate.

Now, some utility companies are lowering their customers’ bills due to the companies’ newly lowered tax rate.

Americans for Tax Reform reports that more than 100 utility companies are part of this trend so far.

102 utility companies that are lowering bills

To be exact, at least 102 companies have now lowered or plan to lower their energy, water or sewer rates, according to Americans for Tax Reform (ATR).

ATR, which opposes all tax increases, attributes this directly to the federal law that recently overhauled the U.S. tax code:

“The Tax Cuts and Jobs Act cut the corporate rate from 35% to 21%. Utility companies are passing on the tax savings in the form of lower rates for customers.”

A few examples of such companies that ATR recently highlighted include:

  • Consumers Energy, which has proposed to pass 100 percent of its tax savings on to customers
  • Duke Energy Ohio, which has said it will pass on $20 million in annual savings
  • Entergy New Orleans, which has proposed to lower bills collectively by “approximately $47 million annually in near-term tax savings and an additional $71 million in savings over the longer term.”
  • Kansas City Power & Light (KCP&L), which has proposed to pass on $34.5 million in annual savings
  • Quadvest, which told Congress it has lowered base sewer and water rates by 26 percent, or almost $90 per year per household
  • Tampa Electric, which has said it will not raise rates to pay for Hurricane Irma restoration costs

For ATR’s complete list of 102 companies, see its June 7 report.

Don’t get too excited

Lower utility bills are undeniably good news for consumers, but it doesn’t necessarily mean you will see huge savings.

When proponents and politicians tout tax reform, they are likely embellishing to some degree. After all, it’s the nature of politics for politicians and their supporters to speak glowingly of any legislation they backed that had a positive effect on those politicians’ constituents or donors.

As Money Talks News founder Stacy Johnson wrote in “6 Important Take-Aways From the Tax Reform Effort“:

“This isn’t about Democrats or Republicans. It’s about politicians and the masters they serve.”

Take my electric bill, for example. My power company, Florida Power & Light Co., says it started lowering rates in March, with the typical bill down by about 3.3 percent or $3.35 per month. But I wouldn’t have noticed that decrease if Florida Power & Light hadn’t emailed me about it.

That said, I’ll still take that $3.35 a month — it’s about $40 a year. I don’t expect much if any savings from a veritable monopoly, and I’m not complaining about tax reform’s effects on me.

What’s your take on the effects of the overhauled tax code? Sound off below or on Facebook.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
What’s the Difference Between FICO and VantageScore Credit Scores?
What’s the Difference Between FICO and VantageScore Credit Scores?

There are lots of credit scores out there, but if you’re keeping an eye on your credit, here’s the one to watch.

3 Ways to Get Paid for Searching the Web
3 Ways to Get Paid for Searching the Web

If you’re already doing it anyway, why not get rewarded for it? Here are three great opportunities.

Should You Hire a Service to Negotiate Your Cable and Other Bills?
Should You Hire a Service to Negotiate Your Cable and Other Bills?

Services like BillCutterz and BillFixers will negotiate your cable, internet, phone and other monthly bills in exchange for a share of the savings. I tried it: Here’s what happened.

7 Things You Should Buy at Estate Sales
7 Things You Should Buy at Estate Sales

Here’s what an experienced estate sale shopper considers a great find.

8 Things I Always Buy at Costco
8 Things I Always Buy at Costco

From bacon to birthday cakes, here are my favorite deals at the popular warehouse store.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

10 Things You Should Never Do With Bleach
10 Things You Should Never Do With Bleach

Does the pandemic have you reaching for bleach more than ever before? Learn the ins and outs of using this powerful disinfectant.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.