AEP customers in Ohio to see savings from federal tax cut
COLUMBUS, Ohio (AP) — Ohio utility regulators have approved an agreement returning proceeds of the federal tax cut to customers of Columbus-based AEP.
In approving the deal Wednesday, Public Utilities Commission of Ohio Chairman Asim Haque (AW’-suhm hawk) called it “good news.”
Haque attributed the deal to commissioners’ insistence that utility companies begin tracking what they were over-collecting when using delivery rates developed under the previous 35-percent federal tax rate, rather than the new 21-percent rate.
AEP agreed to return customers $278 million for certain tax deferrals over 25 years and another $178 million over six years. The company also will add $20.4 million in tax savings per year toward its next rate adjustment.
The agreement also calls for AEP to contribute $1 million annually from 2018 through 2021 to assist low-income customers.