Another Utility To Lower Rate Increases Because of Federal Tax Cut

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National Grid plans to lower planned increases in natural gas rates in Massachusetts because of the federal corporate tax cut signed into law December 22, the company announced Thursday.

The utility company originally proposed to increase natural gas rates by $87 million starting in October 2018 but now will ask the state Department of Public Utilities for permission to increase rates by $51 million. That’s about 41 percent less.

“The company does not yet have available the impact of this proposed reduction on customers’ bills. The $36 million reduction will, however, result in smaller impacts than originally proposed and will vary across rate classes and customer usage,” National Grid said in a written statement.

National Grid has about 908,000 customers in Massachusetts.

National Grid customers in Rhode Island and New York state should also see lower increases than originally planned for both electricity and natural gas rates, the company said.

The tax bill passed by Congress and signed by President Donald Trump last month reduces the federal corporate tax rate from 35 percent to 21 percent.

“We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills,” said Cordi O’Hara, president and chief operating officer of National Grid in Massachusetts, in a written statement. “We’ll continue to seek opportunities to provide this benefit to all of our customers.”