BALTIMORE, MD – In a letter to the Maryland Public Service Commission (PSC), Maryland Attorney General Brian E. Frosh urged members of the PSC to ensure utility customers benefit from cost savings to utility companies resulting from recent tax cuts.
In his letter, Attorney General Frosh stated, “As the Commission is aware, legislation reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. I write to urge the Public Service Commission to take immediate action to ensure that the cost savings associated with these major tax cuts are passed on to utility customers, where they belong.”
Attorney General Frosh noted that without the benefit of a downward rate adjustment, utility companies stood to make a windfall at the expense of utility customers. While customers are entitled to “just and reasonable rates,” they are now paying rates that do not take into account the drop in expenses that went into effect January 1st.
Attorney General Frosh concluded by requesting the PSC review the impact of the recent tax cuts to the utilities with a transparent process that includes public participation.
You can read the letter to the PSC here.