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Tax cuts will save West Virginians money on electricity bills

WEST VIRGINIA RECORD

Thursday, November 21, 2024

Tax cuts will save West Virginians money on electricity bills

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CHARLESTON — The U.S. Chamber of Commerce Global Energy Institute recently released an analysis that shows West Virginians will save an average of $168 on their electricity bills in the next five years.

The analysis says the savings will come from the impact that the Tax Cuts and Jobs Act of 2017 has on electricity utility rates. President Donald Trump signed the law into effect last December.

The act amended the International Revenue Code of 1986 and is the first major tax reform in three decades, according to the analysis.

The analysis states that the act will lower rates for businesses, make the tax system more competitive and bring about more growth for the economy.

"Because of these changes, companies are reinvesting in their business, employees are reaping rewards through bonuses and increased wages, and individuals are keeping more of their hard-earned wages in their paychecks each month," the analysis states.

The analysis explores consumer savings and economic gain in the form of reduced electricity bills.

The total investor-owned utility savings in West Virginia would be $330 million, while the five-year state gross domestic product impact would be $352 million, according to the analysis.

The analysis says sustained job gains would be 891.

The total estimated investor-owned utility statewide savings would average about $66.4 million per year, with $28.4 million of that as residential. The analysis says the average investor-owned residential customer savings per month would be about $2.80.

Customer savings over the next five years will range from $100 million to more than $3 billion across the states analyzed, according to the analysis.

Fifteen states in all were analyzed, including Alabama, Arizona, California, Florida, Georgia, Indiana, Maine, Michigan, Minnesota, Missouri, Nevada, Texas, Virginia, West Virginia and Wisconsin.

Appalachian Power says it should see $235 million in savings, but it's not yet clear where all that money will go, according to the WV News website.

(Editor's Note: The West Virginia Record is owned by the U.S. Chamber's Institute for Legal Reform.)

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