Pennsylvania Utility Costs Going Down For Many Residents

As a result of the recent changes to the federal tax law, Pennsylvania residents may be seeing some relief to their utility costs. In a unanimous decision, Pennsylvania utility costs are going down. 

A 5-0 vote approved a rate reduction which will result in lowered utility costs for many Pennsylvania residents.

The Pennsylvania Public Utility Commission ordered a $320 million reduction for most of the state’s electric, gas and water utilities. The change will go into effect on July 1st and reflects the lower federal tax rate that went into effect this year.

In aggregate, the rate reductions amount to $210 million for electric utilities, $66 million for natural gas utilities and $48 million for water and wastewater utilities, according to Gladys Brown, the PUC’s chair. –

In utility-speak, most customers will see “negative surcharges” although a small number of residents will see an increase.

Pennsylvania Utility Costs and Savings

The new federal tax law substantially lowered corporate interest rates from 35% to 21%. As a result, many high-profile companies have made a splash by raising employee wages, paying out bonuses, or pledging to invest money in their communities.

However, unlike “regular” corporations, utility companies have regulated rates and are required to pass savings on to the customer.

In all, some 17 utility companies in Pennsylvania will be passing on those savings which range from 0.8% to 8.6%. As the cuts go into effect, residents may check rates and compare providers courtesy of our friends over at

Pennsylvania utility costs aren’t the only ones going down. In fact, the recent tax overhaul has prompted rate reductions in other states such as New Jersey. 

Impact on Cost of Living

While the rate reduction is nice, the total amount of savings figures to average 4.83% across the state. This reduction applies to the distribution charges rather than the usage charges. Still, the reduction amounts to a decrease in utility expenses for most of Pennsylvania’s population.

One of the reasons the reduction ranges so widely (0.8% – 8.6%) is because cost of living is greatly impacted by location. Distribution costs vary based on the location of the customer and their proximity to the provider.

Our friends over at can help residents locate their utility provider and compare rates with other providers in their area. Find cable, utility, and internet providers with ease and compare costs to find the best rate for you.

For everything else, there’s City vs City. 

What is City vs City?

City vs City is a powerful cost of living application. The app uses local data curated at the zip code level to determine the cost of living expenses in your city. Users may then compare their costs with other cities around the country to see how their expenses compare.

See the video below for a demonstration:

If you’re thinking of moving to another city, don’t make a move without downloading City vs City first.