PSE&G Applauds FERC Decision Protecting Its Customers From Unfair Transmission Costs

PSE&G (NYSE:PEG) said FERC rejected a proposed PJM settlement that would have shifted transmission costs onto its customers.

Rhea-AI Summary

PSE&G (NYSE:PEG) said FERC rejected a proposed PJM settlement that would have shifted transmission costs onto its customers. FERC's March 6 order found the settlement would have unfairly allocated costs; PSE&G estimates about $100 million in refunds for 2020–2022 and expects larger savings after recalculation back to 2015.

PSE&G was the only PJM utility opposing the deal and joined New Jersey regulators in filings to protect customers.

Positive

• $100 million estimated refunds for 2020–2022
• FERC March 6 order rejected proposed settlement
• PSE&G sole PJM utility to oppose settlement
• FERC directed recalculation of cost assignments back to 2015

Negative

• None.

Argus Mar 18 session

-0.63% close to close Open Argus

Details

News Market Reaction – PEG

On Mar 18, the first trading day after this news, PEG closed 0.63% below the previous close.

Data tracked by StockTitan Argus for the Mar 18 session.

Market Context

This announcement highlights a FERC decision rejecting a PJM transmission-cost settlement that would...

Analysis

This announcement highlights a FERC decision rejecting a PJM transmission-cost settlement that would have raised costs for PSE&G customers, with estimated refunds of about $100 million for 2020–2022 and additional savings as allocations are recalculated back to 2015. In recent news, PEG has emphasized regulated growth, customer bill savings, and governance steps. Investors may watch how future regulatory rulings, capital plans, and customer programs interact with this outcome.

Key Figures

Customer refunds: approximately $100 million Refund period: 3 years (2020, 2021, 2022) Cost reassessment start: 2015

Customer refunds

approximately $100 million

Refunds for 2020–2022 from FERC order

Refund period

3 years (2020, 2021, 2022)

Period used in estimated $100 million refunds

Cost reassessment start

2015

PJM directed to recalculate cost assignments back to 2015

Historical Context

5 past events · Latest: Feb 26

5 events

1. Feb 26

   Full-year results

   24h Move

   -0.1%

   Reported 2025 earnings, initiated 2026 guidance and raised dividend.

2. Feb 26

   Dividend increase

   24h Move

   -0.1%

   Announced higher 2026 dividend and extended long dividend-growth streak.

3. Feb 03

   Earnings call date

   24h Move

   +1.6%

   Set date and details for Q4 and full-year 2025 earnings call.

4. Jan 27

   Efficiency programs

   24h Move

   +1.7%

   Highlighted large customer bill savings from energy efficiency programs.

5. Jan 21

   Board appointment

   24h Move

   -0.5%

   Elected experienced industry executive Geisha J. Williams to the board.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

Federal Energy Regulatory Commission, FERC, PJM, transmission costs

4 terms

Federal Energy Regulatory Commission regulatory

"PSE&G announced today that the Federal Energy Regulatory Commission (FERC) has issued"

A U.S. federal agency that acts like a referee for the large-scale flow and sale of electricity and natural gas across state lines, setting rules, approving rates and licenses, and reviewing major projects and market changes. Investors care because its decisions — on things like transmission rules, pipeline approvals and market structure — can change company profits, project timelines and the price and reliability of energy, similar to how a traffic controller affects delivery routes and costs.

FERC regulatory

"We're grateful that FERC agreed, and we're proud to stand with NJ BPU"

The Federal Energy Regulatory Commission (FERC) is a U.S. government agency that oversees interstate electricity, natural gas and oil pipeline transmission and related market rules. Think of it as a referee and traffic controller for the energy grid and wholesale markets; its approvals, fines or rule changes can affect how much companies can charge, how projects are built and how profitable energy and utility firms are, making it important for investors watching regulatory risk and revenue drivers.

PJM technical

"PSE&G was the only electric utility in PJM that opposed the settlement"

PJM is the large regional operator that coordinates the flow of electricity and runs the wholesale power markets across parts of the eastern and midwestern United States. Think of it as an air-traffic controller for electricity: it balances supply and demand in real time, schedules power plants and transmission, and sets market-clearing prices — all of which affect utility revenues, fuel costs, project economics and investor returns in energy and infrastructure sectors.

transmission costs technical

"rejecting a proposed settlement that would have disproportionately allocated transmission costs"

Transmission costs are the fees and expenses involved in moving electricity, gas or other commodities through a network of wires, pipelines or cables from producers to consumers. Think of them as tolls and upkeep for the highways that carry energy or data; they affect how much end users pay and how much producers keep, can be set or regulated by authorities, and influence company profits, project returns and investment decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PSE&G's efforts protect its customers, delivering potentially millions of dollars in real savings to families and businesses

NEWARK, N.J., March 17, 2026 /PRNewswire/ -- PSE&G announced today that the Federal Energy Regulatory Commission (FERC) has issued a major decision rejecting a proposed settlement that would have disproportionately allocated transmission costs to customers—delivering a significant win for PSE&G customers. FERC's March 6 order (FERC Order number 20260306-3001) found that the proposed settlement would have disproportionately and unfairly shifted transmission project costs.

PSE&G was the only electric utility in PJM that opposed the settlement, which has now been rejected by FERC. Had the settlement been approved, it would have imposed significant and unfair cost burdens on PSE&G customers.

PSE&G argued that the proposal was unjust, unreasonable, unduly discriminatory, and unsupported by the evidence—arguments FERC ultimately adopted in its order. Along with the NJ BPU and the NJ Division of Rate Counsel, PSE&G filed multiple rounds of pleadings opposing the settlement.

"PSE&G fights for our customers every single day, and this decision shows what that commitment means in real terms," said PSE&G President and Chief Operating Officer, Public Service Electric and Gas Company, Kim Hanemann. "We strongly opposed this proposed settlement because it unfairly raised costs for families and businesses. We're grateful that FERC agreed, and we're proud to stand with NJ BPU and the NJ Division of Rate Counsel in protecting the people we serve."

Hanemann added: "We work hard to keep energy costs as low as possible. We deliver industry leading reliability, but we also work tirelessly behind the scenes to make sure customers aren't paying more than they should. The FERC decision will save our customers hundreds of millions of dollars—money that will be returned to PSE&G customers.

PSE&G estimates that its customers will receive refunds in the amount of approximately $100 million for a three-year period (2020, 2021, and 2022) alone as a result of the order rejecting the proposed settlement. Because FERC has directed PJM to recalculate cost assignments dating back to 2015, the actual savings figure is expected to be higher.

PSE&G works hard every day to strengthen the reliability and resilience of New Jersey's energy system. Our efforts in the proceeding also demonstrate our longstanding commitment to ensure fair, responsible energy costs.

About PSE&G

Public Service Electric & Gas Co. is New Jersey's oldest and largest gas and electric delivery public utility, as well as one of the nation's largest utilities. PSE&G has won the ReliabilityOne® Award for superior electric system reliability in the Mid-Atlantic region for 24 consecutive years. In 2025, for the fourth consecutive year, J.D. Power named PSE&G number one in customer satisfaction for residential electric service in the East among large utilities.  PSE&G is a subsidiary of Public Service Enterprise Group Inc., (PSEG) (NYSE:PEG), a predominantly regulated infrastructure company named to the Dow Jones Sustainability Index for North America for 17 consecutive years (www.pseg.com).

CONTACTS:
Investor Relations	Media Relations
pseg-investorrelations@pseg.com	DL-ENT-pseg.communications@pseg.com

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SOURCE PSEG

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did PSE&G (PEG) announce about the FERC March 6, 2026 order?

PSE&G said FERC rejected the proposed PJM settlement that would have shifted transmission costs onto customers. According to the company, the order found the allocation would be disproportionate and unfair, leading to customer protections and ordered recalculation of cost assignments back to 2015.

How much does PSE&G (PEG) estimate customers will receive from the FERC decision?

PSE&G estimates approximately $100 million in refunds for 2020–2022 alone. According to the company, because FERC directed recalculations back to 2015, actual savings for customers are expected to be higher.

Why did PSE&G (PEG) oppose the PJM settlement that FERC rejected on March 6, 2026?

PSE&G said the proposal would have unfairly and disproportionately shifted transmission project costs to its customers. According to the company, it filed multiple pleadings with NJ BPU and NJ Division of Rate Counsel to challenge the allocation.

What is the investor significance of FERC directing PJM to recalculate cost assignments back to 2015 for PEG?

The directive could increase the total refunds and alter past cost allocations for PEG customers beyond 2020–2022. According to the company, recalculation from 2015 means additional amounts may be returned to customers, affecting future regulatory and cash flow considerations.

Did any other PJM utilities join PSE&G (PEG) in opposing the settlement rejected by FERC?

PSE&G said it was the only PJM utility that opposed the proposed settlement. According to the company, it partnered with NJ BPU and NJ Division of Rate Counsel in multiple rounds of filings to oppose the allocation proposal.