Utility To Lower Default Service Rates Due To Federal Tax Cuts

Baltimore Gas & Electric has filed to lower its electric SOS rates as the result of the Tax Cuts and Jobs Act of 2017.

Specifically, BGE filed to decrease the previously proposed SOS Administrative Charges for all SOS service types that were originally filed to become effective February 1

The decreases reflect revisions to the return and cash working capital cost component calculations to incorporate the reduction in the corporate federal income tax rate from 35% to 21% effective January 1, 2018 under the Tax Cuts and Jobs Act of 2017.

BGE's proposed reductions in the SOS admin. charge are below:

BGE SOS Admin. Charge
  mills/kWh

Residential
Current    Previously      Updated 2/1/18
           Filed Change    Change From
           for 2/1/18      Tax Cuts
2.15          2.24           1.91


Type I
Current    Previously      Updated 2/1/18
           Filed Change    Change From
           for 2/1/18      Tax Cuts
1.87          2.40           2.18


Type II
Current    Previously      Updated 2/1/18
           Filed Change    Change From
           for 2/1/18      Tax Cuts
1.24          1.05           0.86


Hourly
Current    Previously      Updated 2/1/18
           Filed Change    Change From
           for 2/1/18      Tax Cuts
0.59          0.90           0.73

To see how these changes impact the total SOS rates for periods beginning February 1, 2018 and various periods thereafter, see BGE's filing here