Water bills should soon shrink for those who buy from Pennsylvania American Water.

The company is saving $47 million annually from last year's federal tax cuts, according to a press release Monday. The Pennsylvania Public Utility Commission is requiring Pennsylvania American Water and 16 other utility companies to issue monthly negative charges to their customers' bills, effectively rerouting tax cuts and jobs act savings from the companies to their customers.

For Pennsylvania American Water customers that means about a 6.8 percent monthly discount on water rates and a 7.7 percent discount on wastewater rates, according to the release.

The discount will appear starting with July water bills. It will be labeled “Fed Tax Cuts Surcharge.”

The entire $47 million is being credited to customer accounts, according to Western Pennsylvania American Water spokesman Gary Lobaugh.

Pennsylvania American Water is the Pennsylvania arm of the national company American Water. The state's branch serves about 2.4 million people.

Residential water rates for American Water are currently about $1.22 per 100 gallons used.

The discount would knock about $3.61 a month off the bill of someone who uses 3,000 gallons of water monthly, and about $4.25 a month for a 3,000 gallon wastewater user.