Merger Savings Credit and Tax Cut & Jobs Act Credit
What is the Merger Savings Credit?
Now that KCP&L and Westar Energy have merged, our combined company operations are making us a stronger regional energy provider. We're creating cost efficiencies as a larger company, which means savings for you. We reduced rates that were implemented in late September 2018. Savings were also passed to you through an initial bill credit in December 2018. You'll see a bill credit on your February or March bill (depending on your bill cycle), and annual bill credits will be applied from 2020 – 2022. The line item on bills will be titled “Merger Savings Credit.”
Who will receive each of these credits?
All active residential electric customers as of Dec. 1, 2018 received the Tax Credit and upfront Merger Credit.
How much savings are you giving back to customers?
The initial Merger Savings Credit to customers totaled $23,065,299, or $16.51 per residential customer. The TCJA credit to customers totaled $50,027,522, or $35.82 per residential customer. Note: Per-customer totals exclude any applicable taxes or franchise fees.
From 2019-2022, annual Merger Savings Credits will be applied by March 31 and total about $8.6 million, or $6.19 per residential customer each year.
For more information about the merger, read about Why We're Merging.
What is the Tax Cut & Jobs Act Credit?
In January 2018, the federal government reduced corporate tax rates as part of the Tax Cut & Jobs Act (TCJA). This credit was included on your December bill and reflects the savings due to that tax change for the period of January through Sept. 27, 2018. The line item on bills was titled “Tax Cut & Jobs Act Credit.” We also implemented lower rates as of Sept. 27 that include the impact of the tax savings going forward.