NEWARK, NJ — According to a March press release, PSE&G has 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,” PSE&G President and COO Dave Daly said in the press release. “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 approximately $18 per year, or approximately 1.3 percent. The typical residential gas heating customer who uses 1,010 therms of gas annually will save approximately $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 said. “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.”
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