PSE&G: FERC Rejects Proposed Settlement to Disproportionately Allocate Transmission Costs to Customers

PSE&G announced that the Federal Energy Regulatory Commission (FERC) has rejected a proposed settlement, which was anticipated to disproportionately allocate transmission costs to customers.

FERC's March 6 order (FERC Order number 20260306-3001) found that the proposed settlement was expected to disproportionately and unfairly shift transmission project costs. If the settlement had been approved, it could have imposed unfair cost burdens on PSE&G customers.

PSE&G argued that the proposal was unjust, unreasonable, unduly discriminatory, and unsupported by the evidence, arguments FERC adopted in its order. Along with the NJ BPU and the NJ Division of Rate Counsel, PSE&G filed multiple rounds of pleadings opposing the settlement.

"PSE&G fights for our customers every single day, and this decision shows what that commitment means in real terms," said PSE&G President and Chief Operating Officer, Public Service Electric and Gas Company, Kim Hanemann. "We strongly opposed this proposed settlement because it unfairly raised costs for families and businesses."

The FERC decision will save customers’ money that will be returned to PSE&G customers.

According to PSE&G estimates, customers will receive refunds of approximately $100 million for a three-year period (2020, 2021, and 2022) alone as a result of the order rejecting the proposed settlement. Because FERC has directed PJM to recalculate cost assignments from 2015, the actual savings are expected to be higher.