Tax Savings Adjustment
FirstEnergy
Current Rate
−0.1054¢/kWh
PUCO Case
18-2263-EL-UNC
Est. 2018
Credit returning federal tax reform savings to customers per PUCO order.
📜 History & Background
The Tax Savings Adjustment (TSA) rider returns federal tax reform savings to FirstEnergy customers following the passage of the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA reduced the federal corporate income tax rate from 35% to 21%. Since electric utilities calculate allowed returns on rate base using a tax-adjusted gross-up, the reduction in the federal tax rate reduced the revenue requirement of regulated utilities. PUCO, consistent with decisions by state commissions across the country, ordered Ohio utilities to return these excess tax collections to customers through a dedicated credit rider. PUCO Case No. 18-2263-EL-UNC initiated the proceeding for FirstEnergy Ohio utilities.
⚙️ How It Works
The TSA credit (approximately 0.105¢/kWh) reduces your bill by returning the portion of past collections that reflected the old 35% tax rate. The exact credit is calculated based on the utility's rate base, and it reduces over time as the excess tax collections are fully returned.
🔒 If You Switch Suppliers
Non-bypassable — the TSA credit applies to all distribution customers regardless of supplier choice.