May 29, 2002—Public Service Electric and Gas Company (PSE&G) recently filed a petition with the New Jersey Board of Public Utilities (BPU) for a $250 million increase in electric distribution revenues to be effective August 1, 2003. If approved, it would be the first increase in more than a decade for New Jersey’s largest utility.
The rate filing was mandated by an April 1999 order, issued by the BPU, which implemented parts of New Jersey’s Electric Discount and Energy Competition Act (EDECA). This same order restructured PSE&G and gave customers the opportunity to shop for alternative suppliers for their electric energy. In its order, the BPU also directed PSE&G to phase in electric customer discounts, which will reach an average of 13.7% for the year ending July 31, 2003, and to have its base rates reviewed and reset for August 1, 2003, when the discounts expire.
The requested increase in distribution revenues, to be effective August 1, 2003, coincides with the expiration of the 13.7% customer discounts. From a customer perspective, the combination of the expiring discounts and PSE&G’s proposed rate changes would mean bill increases averaging 12.8% when compared to bills for the year ending July 31, 2003.
However, PSE&G’s request would place its rates, including the current charges for basic generation service (BGS), at approximately 2.6% below levels in effect when the BPU issued its April 1999 Order. For more information, contact PSE&G.
