PSE&G Files For Rate Change

Public Service Energy & Gas in Newark filed a petition with the state Board of Public Utilities for a $250-million increase in electrical distribution revenues. The rate increase would go into effect August 2003, coinciding with the expiration of discounts on electricity granted to consumers under the Electric Discount and Energy Competition Act. The act allowed New Jerseyans to shop around for the best price among suppliers of electricity, a practice that has not been widely adopted. PSE&G was directed by the BPU to give its customers discounts--which PSE&G says will average 13.7% when they expire next July--to spur competition

Many observers have expressed concern that rates would skyrocket when the enforced discounts expired. The company says electric bills under the proposed rate hike will increase an average 12.8% compared with bills for the fiscal year ending July 31, 2003.

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Author: Business News New Jersey