PSE&G Proposes Solutions in Dealing With Energy Price Increases

On May 16, 2025

PSE&G is amending its May 7 filing with the New Jersey Board of Public Utilities (BPU) to provide additional short-term relief for mitigating the impact of recent significant increases in electric supply costs caused by PJM’s high capacity market prices. In the filing, PSE&G is responding to requests for temporary solutions from Gov. Phil Murphy, in addition to a one-time waiver of carrying costs for credits that might be issued this summer, pending BPU action.

“As Gov. Murphy said yesterday, utilities are not the cause of the unexpected rise in utility rates, but we have a role to play in providing options to assist our customers,” said Kim Hanemann, president and COO, PSE&G. “PSE&G works closely with our customers and communities to help ensure they have access to programs that fit their needs to manage their bills. We will continue to work with policymakers on short-term solutions to assist our customers while working with the state on long-term solutions, including the need for more generation.”

PSE&G requests the BPU approve:

• The implementation of an expansion of the Winter Termination Program, which provides utility shut-off protection to low-income and vulnerable individuals.
• The suspension of reconnection fees.
• The voluntary removal of its carrying charges for a temporary credit beginning on July 1, 2025 to offset the electric bill increases that will occur this summer. Carrying charges are the cost that the company will incur when delaying collection of the supply cost increase PSE&G pays to the suppliers.

In compliance with the BPU’s order dated April 23, 2025, PSE&G’s May 7 filing describes options for the creation of a Temporary Supply Offset Clause (“TSOC”), a temporary credit beginning on July 1, 2025 to offset the electric bill increases that will occur this summer, bill increases that largely stem from the July 2024 PJM Base Residual Auction. As indicated in the May 7 filing, the three options included a 100% offsetting credit, a 50% offsetting credit and a 25% offsetting credit, which were based on guidance from BPU Staff.

While PSE&G has been warning for several years about the supply and demand imbalance in the PJM region, the company said it remains committed to working with stakeholders in government regarding long-term solutions to the rate increases, including policy and legal changes to encourage the development of new generation.

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