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PSE&G's New Initiative for Energy Relief

On May 15, 2025, Public Service Electric and Gas Company (PSE&G) revealed a revised proposal designed to assist customers in New Jersey who are grappling with the recent spike in energy costs. Announced at a critical time when electricity prices have surged, the company is responding to both consumer needs and requests from state officials, including Governor Phil Murphy.

The utility's updated filing with the New Jersey Board of Public Utilities (BPU) aims to provide immediate relief through several initiatives. These include the expansion of the Winter Termination Program, which protects low-income and vulnerable customers from utility shut-offs, the suspension of reconnection fees, and the voluntary removal of carrying charges for any temporary credits issued starting July 1, 2025.

Understanding the Reasons for Price Increases

Energy prices, particularly in the PJM region, have seen a significant increase due to elevated capacity market prices. As PSE&G President Kim Hanemann explained, while the utility isn't the cause of these unexpected increases, it's committed to finding solutions for its service area.

For decades, PSE&G has partnered with various community organizations to ensure that residents are informed about available energy assistance programs. This long-standing commitment has manifested in numerous educational efforts and outreach initiatives aimed at helping consumers manage their energy bills effectively.

Short-term vs. Long-term Solutions

Although immediate solutions are being proposed, PSE&G is also aware of the need for sustainable long-term strategies. Acknowledging the ongoing supply-demand imbalance in the PJM area, the company is actively engaging with stakeholders to push for policy changes that support new energy generation developments. This multifaceted approach reflects PSE&G's understanding that its customers need both short-term relief measures and lasting strategies to combat rising energy costs.

The proposals submitted to the BPU are designed to provide temporary assistance, such as a Temporary Supply Offset Clause (TSOC). This would apply a credit to electric bills starting in July to offset the increases consumers are expected to face this summer. Three options for this credit range from a 25% to a full 100% offset.

PSE&G's Commitment to Affordability

PSE&G prides itself on maintaining affordability for its customers, even as inflation continues to impact costs. According to the company, electric bills today resemble those from 2008 when adjusted for inflation. Continued efforts to keep utility costs manageable have led to commendations for exceptional service and affordability in the region.

In recent years, PSE&G has expanded its energy efficiency programs, providing free assessments to help households and businesses lower energy consumption while saving costs. By February 2025, over 415,000 customers had accessed these programs, collectively saving nearly $640 million annually.

Improvements in outreach have allowed PSE&G to identify and assist up to 226,000 customers with direct supports valued at over $265 million. Despite these successes, it’s estimated that an additional 100,000 eligible customers have yet to take advantage of the available resources.

The utility aims to create awareness via various channels, including bilingual communication, ensuring that all customers can access the assistance they may need. Alongside service centers, the company's website provides extensive information on programs available for energy assistance.

Looking Ahead

As New Jersey's oldest and largest gas and electric utility, PSE&G recognizes the challenges posed by the evolving energy landscape and is focused on fostering strong community relations while enhancing service reliability. With strong accolades for its electric system reliability and accolades like the ENERGY STAR Partner of the Year, PSE&G continues to evolve and adapt in the face of challenges for its customer base. The upcoming initiatives aim to provide immediate relief to those most affected by potential financial strain while signaling a commitment to a broader strategy for a reliable, affordable, and sustainable energy future in the region.

For more information, customers are encouraged to visit PSEG's energy assistance page where details of current programs and options are explained in detail.