PSE&G's Summer Relief Initiative Protecting Residential Customers from Higher Costs This Summer Moves Forward

Rhea-AI Summary

PSE&G announced BPU approval of its Summer Relief Initiative to help residential customers manage higher electricity costs. The program includes a $30 monthly credit for July-August 2025, followed by a $10 monthly repayment from September 2025 through February 2026. Additional measures include waiving reconnection fees from July-September 2025 and implementing a Summer Moratorium protection against utility shut-offs. The initiative addresses rising costs from PJM's capacity price auction while PSE&G works on long-term solutions for New Jersey's power supply-demand imbalance. The company emphasizes the need for in-state power generation development and offers various assistance programs including LIHEAP and Equal Payment Plans to help customers manage energy costs.

Positive

• $30 monthly credit to residential customers in July-August 2025 to offset higher summer costs
• Company waiving reconnection fees and implementing Summer Moratorium protection from July-September 2025
• PSE&G forgoing recovery of carrying costs (interest) for the credit program
• Combined electric and gas bills remain near 2008 levels when adjusted for inflation
• Company maintains high customer satisfaction with award-winning reliable service

Negative

• Customers must repay the summer credit through $10 monthly charges from September 2025-February 2026
• Significant electric supply price increase due to PJM's capacity price auction
• Ongoing power supply-demand imbalance in New Jersey requiring long-term solutions
• 125% higher electricity usage needed when cooling houses in extreme heat conditions

Insights

Utility Regulatory Analyst

PSE&G's bill relief program shifts summer costs to winter months without interest charges, showcasing proactive regulatory collaboration.

PSE&G has secured New Jersey Board of Public Utilities approval for its Summer Relief Initiative, a strategic response to significant electric supply price increases resulting from PJM's capacity price auction. The program demonstrates the utility's proactive approach to managing customer costs while maintaining regulatory relationships.

The initiative has three key components: a $30 monthly credit to all residential customers in July and August 2025; a deferred recovery of these costs at $10 monthly from September 2025 through February 2026; and a Summer Moratorium protecting vulnerable customers from service disconnections between July and September 2025. Notably, PSE&G is forgoing recovery of carrying costs (interest), absorbing this expense to benefit customers.

This program represents a cash flow timing shift rather than a reduction in revenue. The utility will continue paying electricity suppliers the full cost during the deferral period, effectively using its balance sheet to provide customers temporary relief from seasonal price spikes. The move strengthens PSE&G's position as a customer advocate while maintaining financial stability.

The company's broader messaging focuses on addressing the region's power supply-demand imbalance, positioning PSE&G as a potential solution provider for in-state generation development. This could signal future opportunities for infrastructure investment if regulatory support materializes. Meanwhile, the utility continues to promote its energy efficiency programs that can help customers manage costs regardless of rate structures.

PSE&G's customer satisfaction and reliability credentials remain strong, with 23 consecutive ReliabilityOne® Awards and top J.D. Power rankings in 2024 for both electric and gas service in the eastern region. This regulatory approval further demonstrates the company's effective engagement with state authorities while delivering on its customer-centric approach.

PSE&G Continues to be Ready to Deliver Solutions to Address Supply-Demand Imbalance

NEWARK, N.J., June 18, 2025 /PRNewswire/ -- Public Service Electric and Gas Company (PSE&G) today announced the New Jersey Board of Public Utilities (BPU) approved PSE&G's proposal to provide all residential customers with a temporary credit that will offer relief on their summer electric bills. The credit will combat the significant electric supply price increase that is the result of PJM's capacity price auction. PSE&G's relief measures, inclusive of a Summer Moratorium – an expansion of the Winter Termination Program and waiving reconnection fees – are part of PSE&G's proactive Summer Relief Initiative designed to protect residential customers from higher costs this summer.

While addressing the immediate energy supply price concerns of our customers, PSE&G is also advocating for long-term solutions to address the power supply-demand imbalance with needed new energy generation.

For the months of July and August 2025, PSE&G will apply a credit of $30, including taxes, to each residential electric customer's monthly bill. During this summer deferral period, PSE&G will continue to pay the electricity suppliers the full cost of the generation in the new electric supply rate. To recover the cost of the electricity provided and payments made to electric suppliers, PSE&G will collect from each residential electric customer's monthly bill $10 for the months of September 2025 through February 2026. As previously announced, PSE&G has decided to forego recovery of any carrying costs (i.e., interest) for the credit to customers.

As part of the agreement, the BPU also approved PSE&G's proactive proposal to waive all residential reconnection fees during the period from July 1, through September 30, 2025. 

The Summer Moratorium, an expansion of the Winter Termination Program, begins July 1, 2025, providing utility shut-off protection to qualified individuals and will continue through the summer months until September 30, 2025.

"While there is broad recognition that utilities are not the cause of these price increases, PSE&G is pleased to work with Governor Murphy, the legislature and the BPU to develop measures to blunt the immediate impact of higher costs," said Kim Hanemann, president and COO, PSE&G. "As we deliver immediate support for customers, it is also time to turn our collective attention to delivering long-term solutions to address the power generation supply imbalance in the state. Our state needs a strategic, thoughtful integrated system plan to meet future demands. We remain committed to collaborating with policymakers on long-term solutions."

PSE&G is proud of its track record of high customer satisfaction while maintaining customer affordability and award-winning reliable service. PSE&G combined electric and gas bills are nearly equivalent to their 2008 levels when adjusted for inflation.

Long-term Solutions Needed

In addition to immediate customer support, the focus must be on long-term solutions for the state's power generation supply imbalance.

For several years, PSE&G has been warning about the supply and demand imbalance in the region. It is important to address the need to generate our own energy in-state with a goal to ultimately bring down energy costs for residents and businesses.

We remain committed to working with policymakers regarding long-term solutions to these significant rate increases, including advancing policies that encourage the development of new power generation in New Jersey.

Understanding the Impact of Summer Heat on Bills

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. Increased electric usage in summer months often coincides with high heat, frequently leading to increased electric usage as customers run their air conditioners more often.

Regardless of electric rates, customers can take steps now to understand and manage their energy usage. Customers can find valuable energy efficiency information at pseg.com/energyefficiency and bizsave.pseg.com.

PSE&G Customer Assistance

PSE&G works directly with its customers, and with nonprofits and community organizations who work with utility customers, to inform them about energy assistance options.

PSE&G provides information regarding affordability options that customers may qualify for based on certain criteria like income eligibility (i.e., the Low Income Home Energy Assistance Program [LIHEAP], or SHARES for customers who may be experiencing a temporary financial crisis).

There are also additional bill payment tools to help customers manage costs, including PSE&G's Equal Payment Plan and Deferred Payment Arrangements. PSE&G's Equal Payment Plan estimates annual energy costs, and divides bills into 12 equal monthly payments, which allows customers to levelize their monthly spend expectations. Deferred Payment Arrangements allow customers to pay a portion of past-due balances over an agreed-upon period.

Customers can find valuable energy assistance information at pseg.com/saveenergy.

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 23 consecutive years. For the third consecutive year, PSE&G is the recipient of the ENERGY STAR Partner of the Year award in the Energy Efficiency Program Delivery category. In addition, in 2024 J.D. Power named PSE&G number one in customer satisfaction with residential electric service and gas 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 focused on a clean energy future and has been named to the Dow Jones Sustainability Index for North America for 17 consecutive years (www.pseg.com).

Forward-Looking Statements
This release includes forward-looking statements, including but not limited to statements regarding anticipated or expected energy savings, cost saving and greenhouse gas emissions avoidance. There can be no assurance that such energy and costs savings and greenhouse gas emissions avoidance will be realized in the amounts described and / or in the timeframes anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Factors that may cause actual results to differ include, without limitation: the ability to implement our energy efficiency business strategy, and customer adoption of our energy efficiency offerings. All forward-looking statements made in this release are qualified by these cautionary statements and readers are cautioned not to place undue reliance on these forward-looking statements The forward-looking statements contained in this Report 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.

Visit PSEG at:
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CONTACT:
Media Relations
973-430-PSEG (7734) 
dl-ent-pseg.communications@pseg.com

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SOURCE Public Service Electric & Gas Company (PSE&G)

FAQ

What is PSE&G's Summer Relief Initiative for 2025?

PSE&G's Summer Relief Initiative includes a $30 monthly credit for July-August 2025, waived reconnection fees, and utility shut-off protection through September 2025. Customers will repay the credit at $10 monthly from September 2025 through February 2026.

How will PEG stock be affected by the Summer Relief Initiative?

The initiative demonstrates PSE&G's commitment to customer support while maintaining financial stability, as the company will recover costs through a structured repayment plan without charging interest, suggesting minimal long-term impact on financials.

What assistance programs does PSE&G (PEG) offer for customers?

PSE&G offers LIHEAP, SHARES for temporary financial crisis, Equal Payment Plan for levelized monthly payments, and Deferred Payment Arrangements for past-due balances.

Why are PSE&G electricity costs increasing in summer 2025?

Costs are increasing due to PJM's capacity price auction results and higher summer electricity demand, with cooling needs increasing 125% when temperatures rise from 85 to 90 degrees.

How long will PSE&G customers have to repay the summer 2025 credit?

Customers will repay the summer credit through $10 monthly charges over six months, from September 2025 through February 2026.