Virginia Natural Gas to Lower Customers' Rates by $13.9 million to Share Savings from Federal Tax Reform Law
VIRGINIA BEACH, Va., Jan. 2, 2019 /PRNewswire/ -- Beginning Jan. 1, Virginia Natural Gas customers will see the benefit from $13.9 million in reduced rates due to tax expenses savings from the recent Tax Cut and Jobs Act of 2017. The typical Virginia Natural Gas residential customer using approximately 50 ccf per month will see an annual bill decrease of about $33.
These lower rates stem from the Tax Cuts and Jobs Act of 2017, which lowered Virginia Natural Gas' federal tax rate from 35 percent to 21 percent, resulting in savings that will directly benefit Virginia Natural Gas' 300,000 natural gas customers.
"Every customer deserves reliable energy at a price they can afford," said Jim Kibler, president of Virginia Natural Gas. "The benefits of the tax law lowered tax expenses for the company, a savings we are pleased to share with our customers, and I'm happy to report we will be able to lower rates more than originally anticipated."
In December, Virginia Natural Gas received Virginia State Corporation Commission (VSCC) approval of $12.4 million of the decrease, applicable to customers that are not state or federal government agencies or those considered jurisdictional and subject to VSCC oversight.
In addition, Virginia Natural Gas will refund $13.9 million for customers' usage in 2018. The refund is to account for the time between when the federal tax reform law took effect (Jan. 1 2018) and when the VSCC-approved rate reduction became effective. Refunds will vary per customer dependent on their usage during the period of Jan. 1 through Dec. 31, 2018. For more information, visit virginianaturalgas.com/rates-and-tariff.
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