The New Jersey Board of Public Utilities (NJBPU) and New Jersey Division of Rate Counsel approved the proposed rate plan submitted by PSE&G.
The plan would save the typical electric residential customer about 3 percent on their bill, or approximately $3 per month. PSE&G will request that the rate reduction be effective on Aug. 1.
“This settlement, under which PSE&G has voluntarily agreed to reduce its electric rates, is a balanced resolution that will deliver timely rate savings to customers,” PSE&G President and Chief Operating Officer Kim Hanemann said. “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.”
PSE&G has built more than 500 miles of high-voltage transmission circuits and replaced transmission lines. These investments have significantly improved network reliability and have resulted in an 80 percent reduction in transmission outages. Even with these upgrades, PSE&G’s residential rates are still approximately 30 percent lower than they were a decade ago.
If approved by the Federal Energy Regulatory Commission, the agreement would reset the base return on equity for PSE&G’s transmission formula rate at 9.9 percent, down from 11.18 percent.
“Our priority is to deliver on NJBPU’s mission to ensure safe, adequate, and proper utility services are provided at reasonable rates to New Jersey customers,” NJBPU President Joseph Fiordaliso said. “I am pleased that we were able to come to a settlement agreement with the Division of Rate Counsel and PSE&G that, if approved by FERC, will result in direct savings for ratepayers.”