PSE&G Files Scheduled Rate Case, Its First in Nearly 6 Years
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The filing of a rate case by PSE&G with the New Jersey Board of Public Utilities signifies a pivotal moment for the company and its customers. The request to recover capital investments is a common utility practice to ensure that the costs of enhancing and maintaining infrastructure are reflected in the rates charged to consumers. From an economic perspective, the rate adjustment is a balancing act between the need to fund infrastructure improvements and the imperative to keep energy costs manageable for consumers.
Comparing PSE&G's proposed rate increases with those of other NJ utilities over the past years suggests a competitive strategy aimed at minimizing customer impact while still achieving necessary capital recovery. This approach could potentially strengthen PSE&G's market position by enhancing customer loyalty and satisfaction. However, the long-term implications hinge on the utility's ability to manage operational efficiencies and the actual performance of the upgraded infrastructure in terms of reliability and cost savings.
The rate case filed by PSE&G holds considerable significance for investors and stakeholders, as it directly impacts the company's revenue streams and profitability. The fact that this is the first comprehensive rate case in nearly six years indicates a substantial accumulation of capital investments awaiting recovery. For investors, the key interest lies in the utility's ability to secure approval for the rate increases, which would translate into a stable cash flow to support dividends and future investments.
It is essential to scrutinize the company's financial health and the efficiency of its capital investments. The proposed rate increase, being one of the lowest among NJ utilities, may reflect a strategic decision to ease regulatory approval and public acceptance. However, if the approved rates do not adequately compensate for the capital expenditure, there could be long-term financial implications, potentially affecting the company's credit ratings and investment attractiveness.
In the context of utility regulation, PSE&G's rate case submission is a critical regulatory process that determines how much the utility can charge customers for the delivery of electricity and gas. The regulatory scrutiny will focus on the legitimacy of the capital investments claimed by PSE&G and whether they align with broader policy objectives such as reliability, environmental compliance and affordability.
The New Jersey Board of Public Utilities will evaluate the proposed rates against the utility's service quality, customer satisfaction and financial requirements. Stakeholders, including consumer advocacy groups and industry watchdogs, will be keen to assess whether the capital investments translate into tangible benefits for consumers. The outcome of this rate case will set precedence for future utility rate requests within the state and could influence regulatory approaches in similar jurisdictions.
PSE&G Prioritizes Affordability while Enhancing Reliability
PSE&G continues to work hard to keep its customers' bills affordable. With this filing, a PSE&G combined electric and gas bill is about
The PSE&G rate case filed today seeks to recover over
PSE&G's 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 to state and regional peers. Over the last 20 years, PSE&G has improved reliability by approximately
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 number one in customer satisfaction for both Residential Electric and Business Electric Service in the East among Large Utilities.
PSE&G encourages all customers to take advantage of our energy efficiency programs for residential customers or business customers, and tips and tools to help reduce energy use and manage monthly bills. If you or someone you know needs help paying your PSE&G bill, please visit pseg.com/help. Deferred payment options and payment assistance resources are available. Customers who have other concerns about their PSE&G bills should contact us via pseg.com/myaccount, PSE&G mobile app or by calling 1-800-436-PSEG (7734).
About PSE&G
Public Service Electric & Gas Co. is
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute "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. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:
- any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects;
- the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits;
- any equipment failures, accidents, critical operating technology or business system failures, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers;
- any inability to recover the carrying amount of our long-lived assets;
- disruptions or cost increases in our supply chain, including labor shortages;
- any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms;
- the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;
- a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;
- failure to attract and retain a qualified workforce;
- inflation, including increases in the costs of equipment, materials, fuel and labor;
- the impact of our covenants in our debt instruments and credit agreements on our business;
- adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;
- fluctuations in, or third party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
- our ability to obtain adequate nuclear fuel supply;
- changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
- third-party credit risk relating to and purchase of nuclear fuel;
- any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;
- reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;
- the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
- PSE&G's proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
- our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;
- adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;
- risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
- changes in federal and state environmental laws and regulations and enforcement;
- delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and
- changes in tax laws and regulations.
All of the forward-looking statements made in this communication 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 communication apply only as of the date of this communication. 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. The forward-looking statements contained in this communication are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
CONTACTS: | |
Investor Relations | Media Relations |
Marijke Shugrue | |
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SOURCE PSE&G
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