PSEG reports NJ BPU approved settlement agreement

The New Jersey Board of Public Utilities, or BPU, approved a settlement agreement that PSE&G had reached with BPU staff, the New Jersey Division of Rate Counsel and other parties to PSE&G’s electric and gas distribution base rate case filed in December 2023, the company announced. “The settlement advances PSE&G’s ability to continue providing customers with affordable, award-winning service and customer care while also providing the financial strength necessary to maintain a reliable and resilient energy grid. 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… 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 7%, or $15 per month. Of note, this settlement follows the BPU’s approval of certain rate changes that just went into effect October 1, 2024, primarily a 5% reduction in PSE&G gas bills. The combined effect of the October 1 changes would reduce the bill impact from this settlement for a typical combined residential electric and gas customer to about 5%, or $11 per month. New rates will go into effect Oct. 15,” the company stated.