PSE&G's Summer Relief Initiative: A Proactive Approach to Customer Retention Amid Rising Energy Costs.

PSE&G's Summer Relief Initiative aims to alleviate the impact of increased electric supply prices on residential customers in New Jersey. The program includes a $30 credit on July and August bills, a Summer Moratorium on utility shut-offs, and waived reconnection fees. The company is also advocating for long-term solutions to address energy supply-demand imbalances. While the initiative provides temporary relief, it may impact short-term cash flows and is not a permanent solution.

Public Service Electric and Gas Company (PSE&G) has announced a significant initiative to address the rising costs of electricity for residential customers in New Jersey. The Summer Relief Initiative, approved by the New Jersey Board of Public Utilities (BPU), includes a temporary credit on summer electric bills, a Summer Moratorium on utility shut-offs, and waived reconnection fees. The company is also advocating for long-term solutions to the state's energy supply-demand imbalance.

The initiative offers immediate relief to customers by providing a $30 credit on their July and August bills, inclusive of taxes. This credit will help mitigate the impact of increased electric supply prices resulting from PJM's capacity price auction. During this deferral period, PSE&G will continue to pay electricity suppliers the full cost of generation. To recover these costs, the company will collect $10 from each residential electric customer's monthly bill from September 2025 through February 2026. Notably, PSE&G has decided to forgo recovery of any carrying costs for the credit to customers [1].

In addition to the temporary credit, the BPU has approved PSE&G's proposal to waive all residential reconnection fees from July 1, through September 30, 2025. The Summer Moratorium, an expansion of the Winter Termination Program, will provide utility shut-off protection to qualified individuals from July 1, 2025, through September 30, 2025 [1].

Kim Hanemann, president and COO of PSE&G, expressed the company's commitment to addressing immediate customer concerns while advocating for long-term solutions. "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," Hanemann said. "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" [1].

While the Summer Relief Initiative provides temporary relief, it is essential to note that it may impact PSE&G's short-term cash flows. The company has taken steps to mitigate this impact by spreading the cost recovery over several months. However, the initiative is not a permanent solution to the state's energy supply-demand imbalance. PSE&G remains committed to working with policymakers to develop long-term solutions, including policies that encourage the development of new power generation in New Jersey [1].

References:
[1] https://www.morningstar.com/news/accesswire/1046993msn/psegs-summer-relief-initiative-protecting-residential-customers-from-higher-costs-this-summer-moves-forward
[2] https://finance.yahoo.com/news/pse-gs-summer-relief-initiative-180500125.html