Public Service Electric & Gas customers will still see a 1 percent net increase to their utility rates this year, despite the utility’s recent announcement it will lower rates by 2 percent in April thanks to its anticipated federal tax savings.
The utility said in January it would raise rates in the fall by 3 percent to recover investments made to strengthen its power distribution systems since Superstorm Sandy hit in 2012.
The 2 percent decrease in rates will reduce rates by approximately $114 million on an annual basis with the 3 percent increase factored in, a PSG&E spokesperson said.
“We are passing back the benefits of the lower tax rates to our customers,” said Dave Daly, president and COO.
New Jersey Natural Gas, the state’s largest provider of natural gas, also announced that it will will reduce customers’ rates by a collective $21 million, or 3 percent per household, effective April 1, also as a result of savings from the tax reform bill.
NJNG also will give a one-time refund to customers totaling approximately $31 million, or roughly $47 in savings for the average residential heat customer, with refunds to be reflected in customers’ May or June bills.
“Our top priority is to ensure we deliver safe, reliable and affordable service to our customers,” said Laurence Downes, CEO of New Jersey Resources which owns NJNG.