Summer Electric Bill Hike Nears, PSEG Plans To Offer Short-Term Relief

ESSEX COUNTY, NJ — PSE&G plans to offer its New Jersey customers some “short-term assistance” to help offset electric bill increases that will take place this summer, the company says.

In February, the state Board of Public Utilities (BPU) announced that electricity costs would increase again this year for most New Jersey residents and small businesses. The state’s four electric utility companies — Atlantic City Electric, PSE&G, Jersey Central Power & Light and Rockland Energy — all said they expected rates to increase between 17.2 and 20.2 percent as of June 1.

Last week, Gov. Phil Murphy unveiled a series of executive actions that he said will help New Jersey residents manage electric costs ahead of the upcoming rate hike.

Murphy said the utility companies have “reaped billions in profits over the last 10 years.”

“While the utilities are not responsible for the rate increases, they have a responsibility to protect ratepayers,” the governor said. “We ask that utilities share the load and commit to being part of the solution to the PJM cost crisis.”

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The governor’s plan has been met with support, as well as criticism calling it a "pure political gimmick."

On Friday, PSE&G announced that it is amending its May 7 filing with the BPU to provide additional short-term relief in response to Murphy’s request.

The company – which has a headquarters in Newark – said it is requesting that the BPU approve the following measures:

• The voluntary removal of its carrying charges for a temporary credit beginning on July 1 (carrying charges are the cost that the company will incur when delaying collection of the supply cost increase PSE&G pays to the suppliers)
• The implementation of an expansion of the Winter Termination Program (which provides utility shut-off protection to low-income and vulnerable individuals) to July 1 through Sept. 30
• The suspension of reconnection fees from July 1 through Sept. 30

“As Gov. Murphy said [on May 14] in his press release, utilities are not the cause of the unexpected rise in utility rates – but we have a role to play in providing options to assist our customers,” PSE&G president and COO Kim Hanemann said.

“We will continue to work with policymakers on short-term solutions to assist our customers while working with the state on long-term solutions, including the need for more generation,” Hanemann added.

• See Related: PSEG Says Its ‘Energy Efficiency’ Programs Are Working In New Jersey
• See Related: PSEG Has Given Free ‘Energy Checkups’ To Thousands Of Homeowners

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