Due to a new tax overhaul, utility companies will have less taxes to pay, and many of those companies are planning on passing those savings on to customers as well, according to the Wall Street Journal.
The federal government reduced the corporate tax rate from 35% down to 21%. Regulated gas and electric companies will have less tax to pay, and state authorities have given utility companies little choice but to return tax savings to customers. Some will be refunding tax payments collected from customers based on the 35% rate, however they may choose to give refunds out over the course of years.
For example, National Grid U.S., a utility company with subsidiaries in New York, Massachusetts, and Rhode Island, expects a tax credit of $2 billion this year from the lower tax rate. The company's finance chief says the money will be returned to customers over the course of 20-30 years.
Florida Power & Light says they are using the tax savings to cover higher costs and prevent having to spike bills. FPL will use its savings to pay for the $1.3 billion recovery costs from Hurricane Irma. So while FPL customers may not get a reduction on bills, it will spare having to pay any future increases.