ROANOKE, Va. (WSET) — Appalachian Power announced Monday that Virginia customers will have a $50 million interim rate reduction with the Federal Tax Cuts and Jobs Act.
The federal tax changes were approved by Congress in 2017 and reduced the corporate income tax rate from 35% to 21% on January 1.
The interim rate will be effective until April 2019, at which point a permanent rate will be established. Corporate income taxes comprise only a portion of a typical customer’s bill.
Residential customers using 1,000 kilowatt-hours (kWh) a month will see a reduction in their bills of approximately $4.83, once the interim rate is fully implemented.
When the interim rate is fully implemented, Appalachian Power estimates that a Virginia residential customer using 1,000 kilowatt-hours/month will pay about 11.1 cents/kWh (or a total of $110.67), 17% below the national average cost for electricity of almost 13.4 cents* per kWh.