Tax act triggers lower monthly bills for Pennsylvania American customers,

Thousands of Pennsylvania American Water Co. customerswill see lower monthly bills starting in July, the companyannounced.

Most water customers will see a decrease of nearly 6.8 percent, while wastewater charges will dip nearly 7.7 percent for customers who receive sewage service from the company, according to Hershey, Pa.-based Pennsylvania American.

The reductions, cast as a “negative surcharge,” stem from monthly bill credits ordered by the Pennsylvania Public Utility Commission after the federal Tax Cuts and Jobs Act of 2017 eased the company’s tax liability.

“We believe that the customers deserve all of the money back,” said Jeffrey McIntyre, president of Pennsylvania American.

The company counts more than 700,000 customers statewide, including some 148,000 in Allegheny County.

The monthly credits will remain in effect at least until 2021, which is the earliest that new Pennsylvania American rates could take effect, according to the company. For a water customer who uses 3,000 gallons a month, the savings will amount to about $43 a year, the utility said. For a wastewater customer using the same volume, annual savings should be about $51.

Mr. McIntyre said the bill credits, under the PUC decision, will consume the entire reduction in the company’s tax obligation.

Pennsylvania American had hoped to put some of that money into system investments. The PUC said a Distribution System Improvement Charge mechanism is already in place to support infrastructurereplacements.

About 15 other major utilities should be issuing monthly bill credits under the PUC’s May 17 order over the tax matter. They include North Shore-based Peoples Natural Gas Co., according to the utility commission. Customers under Peoples’ Equitable division should see credits of less than 2 percent a month,a PUC filing shows.

Duquesne Light is among those not required to take immediate action because of continuing analyses by regulators, the PUC said. Municipal utilities such as the Pittsburgh Water and Sewer Authority are not affected.