PSE&G Tuesday announced that it is implementing a summer relief initiative intended to protect qualified residential electric customers from disconnection, while seeking approval from the New Jersey Board of Public Utilities (BPU) to provide New Jerseyans relief on their summer electric bills.
To combat the expected electric supply price increase on June 1 that is the result of PJM’s capacity price auction, PSE&G is implementing the following actions:
- A summer moratorium: This is an expansion of the winter termination program, beginning July 1, ahead of additional residential customer relief efforts. The program provides utility shut-off protection to low-income and qualified individuals and will continue until Sept. 30.
- A suspension of reconnection fees.
The implementation of the moratorium and reconnection fee suspension comes on the heels of the company’s filing with the BPU where the utility proposes to defer the effects of the June 1 supply increase for residential electric customers over the summer months.
PSE&G first filed for approval of this action on May 7 and added more support for residential customers on May 15, which is pending BPU review and approval.
“There is now widespread recognition that New Jersey needs more power generation to address the forecasted energy supply-demand imbalance,” said Kim Hanemann, president and chief operating officer at PSE&G. “These actions should help relieve a burden to families and communities just as the weather is getting warmer and electricity usage hits its peak. We encourage our customers to reach out to us if they are struggling to pay their bill so we can help them access the solutions available.”
New Jerseyans’ energy usage is already at its highest during the summer months and the required electric rate increase would only exacerbate the situation. During this summer deferral period, PSE&G said it will still continue to pay the electricity suppliers, who benefit from the supply increase, the full cost of the generation in the new electric supply rate.
PSE&G added that it is important not to confuse increased electric rates with increased electric usage: summer months often coincide with high heat, frequently leading to increased electric usage as customers run their air conditioners more often. The amount of electricity needed to cool your house to 75 degrees when it’s 90 degrees outside is 125% higher than when it’s 85 degrees outside.
