In its filing with the Federal Energy Regulatory Commission (FERC), Public Service Electric and Gas (PSE&G) had asked for formula rate treatment as the company embarks on a $1.6 billion capital spending program for new transmission facilities during the next five to eight years.
These improvements are directed by the PJM Interconnection, the regional entity responsible for planning the transmission system, and are needed to provide reliable electricity service to New Jersey customers.
PSE&G was granted a transmission return on equity of 11.68% effective October 1, 2008. The new rates will increase the bill of the average residential electric customer by less than one-half of 1%, or about $5.50 a year. The company’s last transmission rate increase was in 1997.
