PSE&G (PEG) Rate Case Settlement Approved

Today, the New Jersey Board of Public Utilities (BPU) approved a settlement agreement that PSE&G (NYSE: PEG) had reached with BPU staff, the New Jersey Division of Rate Counsel and other parties to PSE&G's electric and gas distribution base rate case filed in December 2023. The settlement advances PSE&G's ability to continue providing customers with affordable, award-winning service and customer care while also providing the financial strength necessary to maintain a reliable and resilient energy grid.

This rate case filing was required by an earlier settlement and sought recovery of prior investments made to our distribution systems, and recognition of increasing costs over time including wages and benefits. Over the last six years, PSE&G has made significant investments in strengthening our distribution system, modernizing our infrastructure to meet customer needs and other previously authorized capital expenditures that were not reflected in current rates.

More information is available in the BPU order.

"PSE&G provides safe, affordable and reliable service to our customers, which is all the more important as people become more dependent on electricity to power their lives," said Kim Hanemann, President and COO of PSE&G. "We remain focused on managing costs while also working to deliver the level of service our customers expect. This agreement recognizes the much-needed investments in our system that will both improve resiliency and help prepare us for the future. I want to acknowledge the BPU for their consideration and their approval of this settlement."

This base rate increase approved by the BPU will be PSE&G's first since 2018 and represents less than half the rate of inflation during that time. The settlement will result in a typical combined residential electric and gas customer bill increase of 7%, or $15 per month. Of note, this settlement follows the BPU's approval of certain rate changes that just went into effect October 1, 2024, primarily a 5% reduction in PSE&G gas bills. The combined effect of the October 1 changes would reduce the bill impact from this settlement for a typical combined residential electric and gas customer to about 5%, or $11 per month. New rates will go into effect Oct. 15, 2024.

PSE&G recognizes there are customers who need assistance paying utility bills. We encourage eligible customers to take advantage of all available assistance programs including LIHEAP and the New Jersey Universal Service Fund. In 2023, over 200,000 PSE&G customers received energy assistance, totaling $218 million. Through the Fresh Start Program, $92 million in outstanding balances were forgiven.

Information on payment assistance programs is available at pseg.com/help

PSE&G also encourages customers to take advantage of our energy efficiency programs, tips and tools to help reduce energy use and manage monthly bills.

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