PSE&G Announces Short-Term Relief to Help Customers Manage Rising Electric Costs
PSE&G Revises May 7 Filing to Offer Short-Term Relief Amid Rising Energy Costs
Public Service Electric and Gas Company (PSE&G) has updated its May 7, 2025 filing with the New Jersey Board of Public Utilities (BPU) in an effort to provide immediate assistance in response to the sharp rise in electricity supply costs, largely driven by high prices in PJM's capacity market. This amendment addresses recent calls from Governor Phil Murphy for short-term solutions, as expressed in his May 14 press release. PSE&G is also seeking a one-time exemption from carrying costs on potential summer credits, pending BPU approval.
“Our company recognizes that while utilities aren’t responsible for the sudden surge in rates, we have a part to play in supporting our customers,” said Kim Hanemann, President and COO of PSE&G. “We’re committed to working with our communities and policymakers on both immediate relief efforts and longer-term energy solutions, including increased generation capacity.”
For many years, PSE&G has partnered with non-profits and local organizations to promote awareness of available energy assistance programs. This includes hosting hundreds of events statewide and reaching customers directly via mail and digital communications to inform them about tools and programs that help manage utility costs.
Immediate Relief Measures Submitted to the BPU
In direct response to Governor Murphy’s recent announcement, PSE&G has proposed several short-term measures for BPU consideration:
Public Service Electric and Gas Company (PSE&G) has updated its May 7, 2025 filing with the New Jersey Board of Public Utilities (BPU) in an effort to provide immediate assistance in response to the sharp rise in electricity supply costs, largely driven by high prices in PJM's capacity market. This amendment addresses recent calls from Governor Phil Murphy for short-term solutions, as expressed in his May 14 press release. PSE&G is also seeking a one-time exemption from carrying costs on potential summer credits, pending BPU approval.
“Our company recognizes that while utilities aren’t responsible for the sudden surge in rates, we have a part to play in supporting our customers,” said Kim Hanemann, President and COO of PSE&G. “We’re committed to working with our communities and policymakers on both immediate relief efforts and longer-term energy solutions, including increased generation capacity.”
For many years, PSE&G has partnered with non-profits and local organizations to promote awareness of available energy assistance programs. This includes hosting hundreds of events statewide and reaching customers directly via mail and digital communications to inform them about tools and programs that help manage utility costs.
Immediate Relief Measures Submitted to the BPU
In direct response to Governor Murphy’s recent announcement, PSE&G has proposed several short-term measures for BPU consideration:
- Expansion of the Winter Termination Program, which protects low-income and vulnerable customers from having their utility service disconnected.
- Waiving of reconnection fees to reduce the burden on customers seeking to restore service.
- Temporary suspension of carrying charges for a bill credit beginning July 1, 2025. This credit is intended to help offset the seasonal spike in electric costs. Carrying charges typically represent the financial cost of deferring recovery of supply-related expenses.
PSE&G continues to maintain strong performance in affordability and service reliability, with customer bills today remaining comparable to inflation-adjusted levels from 2008. The company’s efforts have consistently placed it among the top U.S. utilities for cost control.
Details of the May 7 Filing
As part of its original May 7 submission—filed in accordance with a BPU directive issued on April 23—PSE&G outlined the creation of a Temporary Supply Offset Clause (TSOC). This mechanism would provide a short-term credit on electric bills starting July 1, 2025. The proposal included three potential credit levels: 100%, 50%, and 25% offsets, developed in consultation with BPU staff. These proposed credits are intended to help ease the impact of significant supply cost increases stemming from the PJM Base Residual Auction in July 2024.
The Need for Long-Term Solutions
PSE&G has long highlighted the imbalance between energy supply and demand in the PJM region. The utility is continuing to collaborate with state officials and stakeholders on lasting strategies, including policy reforms that would incentivize the development of additional energy generation resources to help stabilize costs over time.
Customer Support and Assistance Programs
PSE&G works directly with individuals and through community organizations to raise awareness about available support for managing energy expenses. The company’s portfolio of programs includes everything from rebates and discounts to initiatives tailored to small businesses and large commercial customers.
Free energy efficiency assessments are offered to help homes and businesses reduce energy use and lower bills. As of February 2025, more than 415,000 customers have benefited from these programs, saving a combined total of nearly $640 million annually.
In 2024, PSE&G also enhanced its ability to identify and engage customers most likely to qualify for assistance. Through these improved efforts, over 226,000 customers received more than $265 million in financial support. The company estimates that roughly 100,000 additional customers may still be eligible but have not yet enrolled.
Support is available through programs like LIHEAP (Low Income Home Energy Assistance Program) and SHARES, which offers help to customers facing temporary financial difficulties. Additional tools, such as the Equal Payment Plan and Deferred Payment Arrangements, allow customers to better manage monthly expenses and settle outstanding balances over time.
PSE&G continues to promote these resources through a variety of channels including its customer service centers, call center, social media, email, direct mail, newsletters, bill inserts, and community-based events. Outreach efforts also feature bilingual communications to ensure accessibility for a diverse customer base.
Click here to know more.
Details of the May 7 Filing
As part of its original May 7 submission—filed in accordance with a BPU directive issued on April 23—PSE&G outlined the creation of a Temporary Supply Offset Clause (TSOC). This mechanism would provide a short-term credit on electric bills starting July 1, 2025. The proposal included three potential credit levels: 100%, 50%, and 25% offsets, developed in consultation with BPU staff. These proposed credits are intended to help ease the impact of significant supply cost increases stemming from the PJM Base Residual Auction in July 2024.
The Need for Long-Term Solutions
PSE&G has long highlighted the imbalance between energy supply and demand in the PJM region. The utility is continuing to collaborate with state officials and stakeholders on lasting strategies, including policy reforms that would incentivize the development of additional energy generation resources to help stabilize costs over time.
Customer Support and Assistance Programs
PSE&G works directly with individuals and through community organizations to raise awareness about available support for managing energy expenses. The company’s portfolio of programs includes everything from rebates and discounts to initiatives tailored to small businesses and large commercial customers.
Free energy efficiency assessments are offered to help homes and businesses reduce energy use and lower bills. As of February 2025, more than 415,000 customers have benefited from these programs, saving a combined total of nearly $640 million annually.
In 2024, PSE&G also enhanced its ability to identify and engage customers most likely to qualify for assistance. Through these improved efforts, over 226,000 customers received more than $265 million in financial support. The company estimates that roughly 100,000 additional customers may still be eligible but have not yet enrolled.
Support is available through programs like LIHEAP (Low Income Home Energy Assistance Program) and SHARES, which offers help to customers facing temporary financial difficulties. Additional tools, such as the Equal Payment Plan and Deferred Payment Arrangements, allow customers to better manage monthly expenses and settle outstanding balances over time.
PSE&G continues to promote these resources through a variety of channels including its customer service centers, call center, social media, email, direct mail, newsletters, bill inserts, and community-based events. Outreach efforts also feature bilingual communications to ensure accessibility for a diverse customer base.
Click here to know more.
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