PSE&G Rate Case Settlement Approved
The New Jersey Board of Public Utilities (BPU) has approved a settlement agreement for PSE&G's electric and gas distribution base rate case. This marks PSE&G's first base rate increase since 2018, representing less than half the rate of inflation during that time. The settlement will result in a typical combined residential electric and gas customer bill increase of 7%, or $15 per month. However, considering recent rate changes, the net impact for a typical customer will be about 5%, or $11 per month.
The rate increase aims to recover prior investments in distribution systems and address increasing costs. PSE&G emphasizes its focus on managing costs while improving service reliability and resiliency. The company also highlights available assistance programs for customers struggling with utility bills, including LIHEAP and the New Jersey Universal Service Fund. In 2023, over 200,000 PSE&G customers received $218 million in energy assistance. The new rates will take effect on October 15, 2024.
Il New Jersey Board of Public Utilities (BPU) ha approvato un accordo di transazione per il caso delle tariffe di distribuzione di elettricità e gas di PSE&G. Questo segna il primo aumento delle tariffe di base di PSE&G dal 2018, rappresentando meno della metà del tasso di inflazione durante quel periodo. L'accordo comporterà un aumento tipico della bolletta mensile combinata per i clienti residenziali di elettricità e gas del 7%, ovvero $15 al mese. Tuttavia, considerando i recenti cambiamenti delle tariffe, l'impatto netto per un cliente tipico sarà di circa 5%, ovvero $11 al mese.
L'aumento delle tariffe mira a recuperare gli investimenti precedenti nei sistemi di distribuzione e ad affrontare i costi crescenti. PSE&G sottolinea il suo impegno per gestire i costi migliorando la affidabilità del servizio e la resilienza. L'azienda evidenzia anche i programmi di assistenza disponibili per i clienti in difficoltà con le bollette, tra cui LIHEAP e il New Jersey Universal Service Fund. Nel 2023, oltre 200.000 clienti PSE&G hanno ricevuto $218 milioni di assistenza energetica. Le nuove tariffe entreranno in vigore il 15 ottobre 2024.
La Junta de Utilidades Públicas de Nueva Jersey (BPU) ha aprobado un acuerdo de conciliación para el caso de tarifas base de distribución de electricidad y gas de PSE&G. Esto marca el primer aumento de tarifas base de PSE&G desde 2018, que representa menos de la mitad de la tasa de inflación durante ese tiempo. El acuerdo resultará en un aumento del 7% en la factura combinada típica de clientes residenciales de electricidad y gas, o $15 al mes. Sin embargo, considerando los cambios recientes en las tarifas, el impacto neto para un cliente típico será de aproximadamente 5%, o $11 al mes.
El aumento de tarifas tiene como objetivo recuperar inversiones previas en sistemas de distribución y abordar costos crecientes. PSE&G enfatiza su enfoque en gestionar costos mientras mejora la confiabilidad y la resiliencia del servicio. La compañía también destaca los programas de asistencia disponibles para clientes con dificultades para pagar sus facturas de servicios públicos, incluyendo LIHEAP y el Fondo de Servicio Universal de Nueva Jersey. En 2023, más de 200,000 clientes de PSE&G recibieron $218 millones en asistencia energética. Las nuevas tarifas entrarán en vigor el 15 de octubre de 2024.
뉴저지 공공 유틸리티 위원회(BPU)는 PSE&G의 전기 및 가스 분배 기본 요금 사건에 대한 합의안을 승인했습니다. 이는 PSE&G의 2018년 이후 첫 번째 기본 요금 인상으로, 그 동안의 인플레이션 비율의 절반에도 미치지 않습니다. 이 합의는 전기 및 가스 고객의 일반적인 요금 청구서가 7%, 즉 월 $15 인상되는 결과를 초래합니다. 그러나 최근 요금 변경 사항을 고려할 때, 전형적인 고객에 대한 순 영향은 약 5%, 즉 월 $11입니다.
요금 인상의 목적은 배급 시스템에 대한 과거 투자를 회수하고 증가하는 비용에 대응하기 위함입니다. PSE&G는 서비스의 신뢰성 및 회복력을 향상시키면서 비용을 관리하는 데 초점을 맞추고 있다고 강조합니다. 또한 공공요금 청구서로 어려움을 겪고 있는 고객을 위한 LIHEAP 및 뉴저지 유니버설 서비스 기금을 포함한 지원 프로그램을 강조합니다. 2023년에는 20만명이 넘는 PSE&G 고객이 $2억 1800만의 에너지 지원을 받았습니다. 새로운 요금은 2024년 10월 15일부터 시행됩니다.
Le Conseil des services publics du New Jersey (BPU) a approuvé un accord de règlement pour le cas des tarifs de base de distribution d'électricité et de gaz de PSE&G. Cela marque la première augmentation des tarifs de base de PSE&G depuis 2018, représentant moins de la moitié du taux d'inflation pendant cette période. Le règlement entraînera une augmentation de 7% de la facture combinée des clients résidentiels pour l'électricité et le gaz, soit 15 $ par mois. Cependant, compte tenu des changements tarifaires récents, l'impact net pour un client typique sera d'environ 5%, soit 11 $ par mois.
L'augmentation des tarifs vise à récupérer des investissements antérieurs dans des systèmes de distribution et à faire face à l'augmentation des coûts. PSE&G souligne son engagement à gérer les coûts tout en améliorant la fiabilité et la résilience du service. La société met également en avant les programmes d'assistance disponibles pour les clients rencontrant des difficultés avec leurs factures de services publics, y compris LIHEAP et le Fonds de services universels du New Jersey. En 2023, plus de 200 000 clients de PSE&G ont reçu 218 millions de dollars d'assistance énergétique. Les nouveaux tarifs entreront en vigueur le 15 octobre 2024.
Der New Jersey Board of Public Utilities (BPU) hat eine Vergleichsvereinbarung genehmigt für den Fall der Grundtarife für die elektrische und Gasverteilung von PSE&G. Dies stellt die erste Erhöhung des Grundtarifs von PSE&G seit 2018 dar, die weniger als die Hälfte der Inflationsrate in diesem Zeitraum beträgt. Die Einigung führt zu einem typischen Anstieg der kombinierte Rechnung für Haushaltskunden von 7%, oder $15 pro Monat. Angesichts der jüngsten Tarifänderungen wird der Nettoeffekt für einen typischen Kunden jedoch etwa 5%, also $11 pro Monat betragen.
Die Tariferhöhung zielt darauf ab, frühere Investitionen in die Verteilungssysteme zurückzuerhalten und steigende Kosten zu adressieren. PSE&G betont, dass der Fokus auf Kostenmanagement und Verbesserung der Servicezuverlässigkeit und -resilienz liegt. Das Unternehmen hebt auch die verfügbaren Unterstützungsmöglichkeiten für Kunden hervor, die Schwierigkeiten mit den Stromrechnung haben, einschließlich LIHEAP und dem New Jersey Universal Service Fund. Im Jahr 2023 erhielten über 200.000 PSE&G-Kunden $218 Millionen an Energiehilfe. Die neuen Tarife treten am 15. Oktober 2024 in Kraft.
- First base rate increase in six years, representing less than half the rate of inflation
- Recognition of investments made to improve system reliability and resiliency
- Recent 5% reduction in PSE&G gas bills partially offsets the new rate increase
- $218 million in energy assistance provided to over 200,000 customers in 2023
- $92 million in outstanding balances forgiven through the Fresh Start Program
- 7% increase in typical combined residential electric and gas customer bills
- Net bill impact of about 5% or $11 per month for typical customers after recent rate changes
Insights
The BPU's approval of PSE&G's rate case settlement is a significant development for the utility. This is the first base rate increase in six years, reflecting accumulated investments and rising costs. The
Importantly, the
The rate increase should positively impact PSE&G's revenue and profitability, supporting its ability to maintain infrastructure and invest in future improvements. However, investors should monitor any potential regulatory or public pushback, as well as the company's ability to manage costs and maintain customer satisfaction in light of the price increase.
This rate case settlement is a balanced outcome for PSE&G, reflecting the regulatory environment's recognition of necessary infrastructure investments. The approval demonstrates constructive regulatory relations, which is important for utility companies.
The six-year gap between rate increases is unusually long in the utility sector, indicating PSE&G's strong cost management. However, this also suggests potential for more frequent future rate cases to keep pace with ongoing investments and inflation.
PSE&G's focus on energy efficiency programs and customer assistance is strategically important, potentially mitigating negative reactions to the rate increase. The company's awards for reliability and customer satisfaction provide a strong foundation for justifying the rate increase to stakeholders.
Investors should view this as a positive signal for PSE&G's ability to recover costs and maintain financial health while balancing customer impacts.
First Base Rate Increase in Six Years, an Annual Increase of About One Percent
This rate case filing was required by an earlier settlement and sought recovery of prior investments made to our distribution systems, and recognition of increasing costs over time including wages and benefits. Over the last six years, PSE&G has made significant investments in strengthening our distribution system, modernizing our infrastructure to meet customer needs and other previously authorized capital expenditures that were not reflected in current rates.
More information is available in the BPU order.
"PSE&G provides safe, affordable and reliable service to our customers, which is all the more important as people become more dependent on electricity to power their lives," said Kim Hanemann, President and COO of PSE&G. "We remain focused on managing costs while also working to deliver the level of service our customers expect. This agreement recognizes the much-needed investments in our system that will both improve resiliency and help prepare us for the future. I want to acknowledge the BPU for their consideration and their approval of this settlement."
This base rate increase approved by the BPU will be PSE&G's first since 2018 and represents less than half the rate of inflation during that time. The settlement will result in a typical combined residential electric and gas customer bill increase of
PSE&G recognizes there are customers who need assistance paying utility bills. We encourage eligible customers to take advantage of all available assistance programs including LIHEAP and the New Jersey Universal Service Fund. In 2023, over 200,000 PSE&G customers received energy assistance, totaling
Information on payment assistance programs is available at pseg.com/help
PSE&G also encourages customers to take advantage of our energy efficiency programs, tips and tools to help reduce energy use and manage monthly bills.
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- the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits;
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- the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;
- a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;
- failure to attract and retain a qualified workforce;
- increases in the costs of equipment, materials, fuel, services and labor;
- the impact of our covenants in our debt instruments and credit agreements on our business;
- adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;
- any inability to extend certain significant contracts on terms acceptable to us;
- development, adoption and use of Artificial Intelligence by us and our third-party vendors;
- fluctuations in, or third-party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
- our ability to obtain adequate nuclear fuel supply;
- changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
- third-party credit risk relating to our sale of nuclear generation output and purchase of nuclear fuel;
- any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;
- the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
- PSE&G's proposed investment projects or programs may not be fully approved by regulators and its capital investment may be lower than planned;
- our ability to receive sufficient financial support for our
New Jersey nuclear plants from the markets, production tax credit and/or zero emission certificates program; - adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;
- risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as operational, financial, environmental and health and safety risks;
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- delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and
- changes in tax laws and regulations.
All of the forward-looking statements made in this release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this release apply only as of the date of this release. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.
The forward-looking statements contained in this release are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com or by navigating to the Email Alerts webpage here. The information on https://investor.pseg.com and https://investor.pseg.com/resources/email-alerts/default.aspx is not incorporated herein. |
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