We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exelon (EXC) Unit to Pass TCJA Savings to Residential Users
Read MoreHide Full Article
Exelon Corporation (EXC - Free Report) announced that its subsidiary Commonwealth Edison Company (ComEd) has received necessary approval from The Illinois Commerce Commission (“ICC”) to pass on the tax savings resulting from the implementation of the Tax Cuts and Jobs Act (TCJA).
The new act became effective Jan 1, 2018 and has lowered the corporate tax rate from 35% to 21%. This led to reduction in the amount of federal income tax ComEd will pay to the government. ComEd sought approval from ICC to pass its tax savings of nearly $200 million to its residential customers in Illinois which will result in average savings of $2-$3 per month from February. Without ICC’s approval customers would not realize savings from the tax cut until 2020.
Tax Cuts – A Boon for Utilities
Utilities in some states are trying to use the tax cut to lower the bill of their customers. Utilities are passing on the benefits to their customer base either through reduction in existing electric rates or by adjusting the planned rate increases.
Passing on tax savings does not look significant when we consider a single user or a single utility, however, it is significant when we consider the nation as a whole. Already decisions have been taken to pass on more than billions of dollars in tax savings to customers and we expect this amount to increase.
Utilities like AVANGRID, Inc. (AGR - Free Report) and Pinnacle West Capital Corporation (PNW - Free Report) among others, have also expressed intention to pass on the tax savings benefits to customers. NextEra Energy (NEE - Free Report) , on the other hand, has decided to use the tax savings of nearly $1.3 billion to recoup the storm recovery expenses, without increasing the bills of its users in Florida.
Quality Service at Low Prices
The savings due to tax cuts will allow the residential customers of ComEd to enjoy safe and reliable services at a very competitive price.
Since 2001, ComEd has invested in excess of $5 billion to strengthen its electrical transmission and distributions system and has also nearly completed the installation of nearly 4 million smart meters. ComEd rates are low compared with the average electric rates in 10 largest American cities.
Thanks to the tax cuts, the user will enjoy the benefits from strengthening infrastructure of its service provider, at lower rates.
Price Movement
Exelon’s shares have returned 7.9% last year, outperforming the rally of 2.3% from the industry it belongs to.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Exelon (EXC) Unit to Pass TCJA Savings to Residential Users
Exelon Corporation (EXC - Free Report) announced that its subsidiary Commonwealth Edison Company (ComEd) has received necessary approval from The Illinois Commerce Commission (“ICC”) to pass on the tax savings resulting from the implementation of the Tax Cuts and Jobs Act (TCJA).
The new act became effective Jan 1, 2018 and has lowered the corporate tax rate from 35% to 21%. This led to reduction in the amount of federal income tax ComEd will pay to the government. ComEd sought approval from ICC to pass its tax savings of nearly $200 million to its residential customers in Illinois which will result in average savings of $2-$3 per month from February. Without ICC’s approval customers would not realize savings from the tax cut until 2020.
Tax Cuts – A Boon for Utilities
Utilities in some states are trying to use the tax cut to lower the bill of their customers. Utilities are passing on the benefits to their customer base either through reduction in existing electric rates or by adjusting the planned rate increases.
Passing on tax savings does not look significant when we consider a single user or a single utility, however, it is significant when we consider the nation as a whole. Already decisions have been taken to pass on more than billions of dollars in tax savings to customers and we expect this amount to increase.
Utilities like AVANGRID, Inc. (AGR - Free Report) and Pinnacle West Capital Corporation (PNW - Free Report) among others, have also expressed intention to pass on the tax savings benefits to customers. NextEra Energy (NEE - Free Report) , on the other hand, has decided to use the tax savings of nearly $1.3 billion to recoup the storm recovery expenses, without increasing the bills of its users in Florida.
Quality Service at Low Prices
The savings due to tax cuts will allow the residential customers of ComEd to enjoy safe and reliable services at a very competitive price.
Since 2001, ComEd has invested in excess of $5 billion to strengthen its electrical transmission and distributions system and has also nearly completed the installation of nearly 4 million smart meters. ComEd rates are low compared with the average electric rates in 10 largest American cities.
Thanks to the tax cuts, the user will enjoy the benefits from strengthening infrastructure of its service provider, at lower rates.
Price Movement
Exelon’s shares have returned 7.9% last year, outperforming the rally of 2.3% from the industry it belongs to.
Zacks Rank
Exelon has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>