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The Michigan Public Service Commission has approved nearly $270 million in electricity rate cuts for customers of DTE Electric Co. and Consumers Energy Co. because of utility savings from the federal corporate income tax overhaul.

The panel on Tuesday ordered DTE to reduce rates by $156.9 million annually, for a $2.46 per month savings for a residential customer using an average of 500 kilowatt hours per month. It ordered Consumers Energy to cut its rates by $112.7 million annually, or $2.35 per month for similar residential customers.

The commission said the rate adjustments will be reflected in customer bills starting in August.

The tax overhaul reduced the corporate rate from 35 percent to 21 percent and made other changes to tax rules.