Come 2018, more than a million utility customers across Kentucky are expected to see lower rates for electricity, natural gas, and water service. It’s a result of the just passed federal tax reform legislation.
The Kentucky Public Service Commission is ordering for profit utilities to track their savings under lower corporate taxes that kick in Monday. PSC Spokesman Andrew Melnykovych says it’s too early to say how much customers will save. “It’s hard to say exactly what the numbers are going to show at the end of the process but I would think at this point it’s fairly reasonable to assume that there will be some impact on rates, it’s just we don’t know how much,” said Melnykovych.
The PSC representative says customers should see cost relief in two ways. “At some point the commission will reach a determination as to what the new rates should be to reflect the lower taxes and then the over collection that has been tracked by the utilities will also be returned to ratepayers in some fashion as well,” noted Melnykovych.
Melynkovych says it will probably be a few months before customers would notice changes in their bills. The PSC orders effect several companies including Kentucky Utilities, Louisville Gas and Electric, Columbia Gas, and Kentucky America Water.