INDIANAPOLIS - The Indiana Utility Regulatory Commission has approved a proposal from Indianapolis Power & Light Co. to credit $9.5 million back to customers over the next six months. The credit is the result of the Tax Cuts and Jobs Act and the utility say the average residential customer will pay approximately $1.50 less on their monthly electric bills.

"The IURC’s approval of this credit for the 2018 impact of the reduction of the federal income tax rate ensures our customers timely benefit from federal tax reform," said Craig Jackson, chief executive officer of IPL. "This reform will help us solidify our position as having one of the lowest residential rates among investor-owned utilities, while continuing to provide safe and reliable service to our 490,000 customers."

The approval comes as IPL awaits a decision from the IURC regarding a settlement agreement with the Indiana Office of Utility Consumer Counselor and various other stakeholders on the utility's proposed electric rate increase. A final decision on the proposal is expected by the end of the year.

IPL is not the only Indiana utility to offer credit to customers because of the Tax Cuts and Jobs Act. Last month, Duke Energy Indiana received approval from the IURC to implement tax savings to customers, who will see an average monthly savings of $7.33 on their electric bills by 2020.