(Newark, NJ – March 2, 2018) Public Service Electric and Gas Co. (PSE&G) today proposed to lower customer bills by approximately 2 percent on April 1 to pass on the benefits of the federal tax reform legislation enacted earlier this year.
In its filing with the NJ Board of Public Utilities, PSE&G will reduce rates by approximately $114 million on an annual basis effective April 1 to reflect lower federal taxes the utility will pay. The typical residential combined electric and gas customer will save nearly $41 per year.
“We are passing back the benefits of the lower tax rates to our customers,” said Dave Daly, president and COO. “Today, PSE&G’s typical combined residential customer’s bill is 21 percent lower than it was in 2010.”
The typical residential electric customer who uses 7,200 kilowatt-hours annually will save about $18 per year, or approximately 1.3 percent. The typical residential gas heating customer who uses 1,010 therms of gas annually will save about $23 per year, or approximately 2.6 percent.
“In addition to the reduction proposed in today’s filing, we were the first utility in the nation to lower our transmission rates by approximately $150 million a year due to the lower tax rates,” Daly added. “When both reductions are combined, customers will benefit from more than $260 million in annual benefits. We are also evaluating other impacts of the tax act and will work with the BPU to pass on any additional savings to customers.”
PSE&G
Public Service Electric and Gas Company (PSE&G) is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state’s population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG), a diversified energy company.
Forward-Looking Statements
The statements contained in this press release that are not purely historical are “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. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on its website: http://investor.pseg.com. All of the forward-looking statements made in this press release 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 press release apply only as of the date hereof. 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.
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