Reflects strong cost control and reduction in federal taxes passed through to customers
Filing includes proposal to support investments in energy efficiency to reduce bills and emissions
NEWARK, N.J., Jan. 12, 2018 /PRNewswire/ -- Public Service Electric and Gas Co. (PSE&G) today filed its first regulatory rate review in more than eight years, asking for a small adjustment in electric and gas base delivery rates that would increase overall revenues by approximately 1 percent.
The increase is necessary to recover investments PSE&G made to strengthen its electric and gas distribution systems, making them more reliable and resilient. PSE&G is required to file the rate review as a condition of the approval by the New Jersey Board of Public Utilities of the company's Energy Strong program in 2014.
If approved as filed, the typical combined residential electric and natural gas customer will see an approximate 1 percent increase or about $19.70 in their annual bill. Even with this proposed increase, bills for the typical residential customer are expected to be more than 15 percent lower than they were in 2010.
"Our customer bills are already among the lowest in the state – and that won't change," said David Daly, PSE&G president and COO.
"As a result of strong cost control, our residential customer bills are lower today than they were eight years ago," Daly said. "Together with passing along savings from recent tax law changes, we've been able to minimize the impact on our customers."
Revenues from base rates are used to maintain and improve the electric and gas delivery infrastructure, such as pipes and wires, and provide customer services. Customer bills also contain separate charges for the electric and gas supply that is obtained by PSE&G on behalf of its customers.
"Since our last regulatory rate review in 2010, PSE&G has made significant capital investments to upgrade, modernize, and strengthen our electric and gas systems to make them more reliable and resilient," Daly said. "Our current electric and gas delivery rates do not reflect all the investments we have made to maintain the safe, highly reliable service our customers have come to expect. This rate review also addresses previously incurred storm costs that had been deferred until this time."
Proposal includes Green Enabling Mechanism
The rate filing also seeks BPU approval of a rate design change, called the Green Enabling Mechanism (GEM), a proposal to decouple revenues from sales volumes and thereby encourage energy efficiency. If approved, the GEM will remove the incentive to sell more energy and will instead encourage utility investments in energy efficiency, renewables and other clean energy technologies that will ultimately benefit all customers by bringing down bills and reducing emissions.
PSE&G anticipates that new base rates as well as the GEM will take effect October 1, 2018.
Public Service Electric and Gas Company (PSE&G) is New Jersey's oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state's population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) (PEG), a diversified energy company.
The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on its website: http://investor.pseg.com. All of the forward-looking statements made in this press 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 press release apply only as of the date hereof. 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.
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