Dive Summary:
- New Jersey's Public Service Electric & Gas (PSE&G) is making its case to the New Jersey Board of Public Utilities (BPU) to spend $2.6 billion on grid hardening over the next five years.
- Hearings begin Monday to determine how PSE&G's plan will prevent flooding at substations and switching stations, which was a major problem during Superstorm Sandy. PSE&G has proposed to spend $1.7 billion to harden 31 stations serving densely populated areas.
- Consumer advocates worry the spending will increase electricity rates but the utility claims rates will out due to lower prices of gas and the end of energy deregulation surcharges.
From the article:
In its petition, PSE&G argued that its billion of dollars in investments would not boost rates, primarily because of historically low natural gas prices and the winding down of surcharges on utility bills stemming from the deregulation of the energy sector back in 1999.
That view is questioned by consumer advocates, who say customers should see a drop in electric bills with lower gas rates and the elimination of energy deregulation surcharges. In a statement issued this past April, however, BPU President Bob Hanna said the PSE&G $3.9 billion proposal could end up boosting utility rates by 8 percent, a view disputed by the company.
