PSE&G files 1st rate case since 2018, seeking to recover $3B in capital investments

Public Service Electric & Gas filed its first rate case in nearly six years with the New Jersey Board of Public Utilities last week, seeking to recover more than $3 billion in capital investments made over the past several years.

The PSE&G rate case requests an overall bill increase of approximately 9%. For a typical combined residential electric and gas customer, it would represent an increase of approximately 12%, or an average of $25 per month.

PSE&G officials said the main component of the case is to recover capital investments made to strengthen and modernize the state’s electric and gas infrastructure since PSE&G’s last rate case in 2018.

PSE&G officials said the request is among the lowest proposed rate increases filed by a New Jersey public utility over the past several years — and that PSE&G aims to work hard to keep its customers’ bills affordable.

With this filing, a PSE&G combined electric and gas bill is about 3% of New Jersey’s household income for median-income customers and about 2% of household income for low-income customers who take advantage of available payment support programs. Over the past 15 years, the affordability of PSE&G bills has improved by approximately 40%.

PSE&G officials said its prudent investment strategies continue to lead to superior reliability performance and customer satisfaction while also maintaining the lowest operations and maintenance costs per customer compared with state and regional peers. Over the last 20 years, PSE&G has improved reliability by approximately 20% and reduced methane emissions by approximately 35%.

PSE&G was recently awarded the 2023 ReliabilityOne Award for outstanding metropolitan Service Area Reliability Performance in the Mid-Atlantic Region for the 22nd consecutive year and the national 2023 ReliabilityOne Outstanding Customer Engagement Award.

In 2023, J.D. Power named PSE&G No. 1 in customer satisfaction in the East for both residential and business among large utilities.