PSE&G says it plans to cut electric rates in N.J.

Posted Jul 16, 2021

A typical residential PSE&G customer will save 3% on their monthly bill, or about $3 per bill, if a new agreement between the company and two state agencies is approved by federal regulators, PSE&G said.

The agreement, between PSE&G, the Division of Rate Counsel and the Board of Public Utilities, would change how the formula for the company’s transmission rates are determined. It would be lowered by approximately $140 million per year, PSE&G said, and that savings would be passed on to consumers.

The agreement, which would be effective Aug. 1, still has to be approved by the Federal Energy Regulatory Commission (FERC).

Stefanie Brand, director for the Rate Counsel, which is tasked with monitoring utility service to represent the interests of consumers, said the agency initiated talks, which went on for more than a year, after its annual review of PSE&G.

“(The changes) will allow for greater transparency going forward when we review the company’s formula rate on an annual basis, which should allow us to continue to ensure that the rates are reasonable,” she said.

PSE&G president and chief operating officer Kim Hanemann called the settlement “a balanced resolution that will deliver timely rate savings to customers” in a company statement.

“PSE&G’s transmission investments also have saved customers hundreds of millions of dollars in congestion costs, increased the reliability and resiliency of the grid and will support greater development of renewable resources to help New Jersey meet its clean energy goals,” she said.

Investors should note the company said the financial impact of the settlement agreement is expected to lower PSE&G’s net income by approximately $50 million to $60 million, or $0.10 per share to $0.12 per share, on an annual basis in the first 12 months, once implemented.

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published this page in News and Politics 2021-07-17 03:08:49 -0700