PUBLIC SERVICE ELECTRIC & GAS FILES FOR RATE INCREASE
PUBLIC SERVICE ELECTRIC & GAS FILES FOR RATE INCREASE NEWARK, N.J., Nov. 14 /PRNewswire/ -- Public Service Electric and
Gas Company (PSE&G) today petitioned the N.J. Board of Regulatory Commissioners for a $669 million increase in electric and gas rates. It is expected that the request would not go into effect until September, 1992, at the earliest. The overall 13.6 percent request calls for an electric revenue increase of $507 million, or 14.9 percent, and a $162 million increase, or 10.7 percent, in gas revenue. It is the first base rate request filed by the company in six years.
Lawrence R. Codey, PSE&G president, said the rate request is necessary to help cover the $1.6 billion the company has invested in the electric and gas infrastructure required to help ensure reliable, efficient service for 2.2 million residences and businesses, as well as to cover increased costs related to the inflationary pressures which have developed which have developed since the company last received rate relief. "PSE&G has made a determined effort to provide its customers and the state with stable electric and gas rates, and the fact is, our customers pay less now than they did six years ago for electric and gas energy," Codey said. "We've worked hard to control costs while adding 200,000 new customers, maintaining reliability, improving service, and upgrading electric and gas facilities. We're operating with fewer employees now than in 1985 and even after considering the current rate request the projected change is considerably below the 30 percent increase in New Jersey's Consumer Price Index that's been experienced since we filed our last rate petition." Recovery of these costs are necessary, Codey said, for PSE&G to maintain its strong financial position and keep financing costs as low as possible. While PSE&G employees have worked hard to control costs, a significant portion of the overall request, about $230 million, Codey said, results from mandated, annual expenditures over which the company has little direct control. These include implementation of an environmental remediation program for former gas manufacturing sites, revised depreciation rates for electric and gas facilities, increasing health care costs, funds set aside for decommissioning nuclear generating stations, and required accounting changes. These factors alone account for approximately one-third of the requested increase. PSE&G expected that the normal schedule of public hearings on the rate request would lead to a ruling by September, 1992. At that time, the company's current base rates will have been in effect for almost six years. The proposed $507 million electric revenue increase would represent a 15.95 percent increase for a residential customer using 500 kilowatthours a month. COMPARISON OF TYPICAL RESIDENTIAL BILLS -- ELECTRIC Use Increase Killowatthours Present Proposed Amount Percent 200 $23.06 $26.84 $3.78 16.39 300 33.07 38.64 5.37 16.14 500 (summer) 53.68 62.24 8.56 15.95 500 (winter) 53.68 62.24 8.56 15.95 1,000 (summer) 110.86 127.39 16.53 14.91 1,000 (winter) 100.01 112.08 12.07 12.06 The proposed $162 million gas increase would represent an approximate 12.45 percent increase for a residential customer using 200 therms a month. COMPARISON OF TYPICAL RESIDENTIAL BILLS -- GAS Use Increase Therms Present Proposed Amount Percent 25 $20.58 $24.38 $3.70 16.40 50 35.16 41.25 6.09 17.32 100 64.31 73.44 9.13 14.19 200 122.62 137.89 15.27 12.45 300 180.93 202.33 21.40 11.83 -0- 11/14/91 /CONTACT: Neil Brown of PSE&G, 201-430-6017/ (PEG) CO: Public Service Electric and Gas Company ST: New Jersey IN: UTI SU: SM-SH -- NY077 -- 4520 11/14/91 15:31 EST
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|Date:||Nov 14, 1991|
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