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  • PUC projects the savings for the utilities’

PA American Water reduces customer bills, passing on savings from Federal Tax Reform

HERSHEY, PA — Pennsylvania American Water announced that most of its water and wastewater customers will start seeing lower monthly bills as a result of the federal Tax Cuts and Jobs Act of 2017. Starting July 1, 2018, the decrease will appear on customers’ bills as the “Fed Tax Adjust Surcharge” to reflect the company’s reduced tax expense. For customers who receive both water and wastewater service from Pennsylvania American Water, their monthly bills will reflect a credit for each. On May 17, 2018, the Pennsylvania Public Utility Commission (PUC) issued an order directing 17 electric, natural gas, and water and wastewater utilities, including Pennsylvania American Water, to implement a “negative surcharge” or monthly credit on customer bills. The PUC’s order cited decreased federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act of 2017, which impacted the tax liability of many utilities. The PUC projected the savings for the utilities’ customers at more than $320 million per year.

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