Atlanta Gas Light Co. received approval from the Georgia Public Service Commission for a stipulation that allows for $82 million in customer benefits as a result of the federal tax reform law.
The amount includes $16 million in rate credits that would be returned to the Southern Co. utility's customers starting July, according to a May 15 news release. The stipulation reached by the regulators and Atlanta Gas Light also took into account loss of bonus depreciation, a cash flow deficit and other negative impacts resulting from the lower tax rate.
"The PSC's order strikes the proper balance of allowing Atlanta Gas Light to continue making important safety and modernization investments in infrastructure programs while returning the net benefits of tax reform to customers," said Atlanta Gas Light President Bryan Batson.
With the tax savings, Atlanta Gas Light no longer needs to request for rate increases for the next two years. It also cut the balance owed by customers for a completed pipeline replacement program by about $19.5 million.
Customers are expected to receive $8.52 in credits split between their July and October bills, the utility said in the release.