Gloria here from Newark. My commercial clients on PSE&G are getting hammered with delivery charge increases over the past year. One manufacturing client saw their monthly delivery charges jump from $18k to $27k with no increase in usage. The Distribution Enhancement Clause went from $0.0045/kWh to $0.0089/kWh. Anyone else in New Jersey territory seeing similar spikes? This is killing my clients' budgets and they're asking if there's any recourse through the BPU.
PSE&G Delivery Charges Skyrocketing - Anyone Else in NJ Seeing This?
Gloria, we don't have PSE&G out here in Colorado, but Xcel Energy pulled something similar last year. The key is to dig into the rate case filings with your state PUC. Sometimes these infrastructure surcharges can be challenged if they weren't properly justified or if the utility is double-recovering costs through base rates and riders.
I've seen this pattern with Duke Energy in North Carolina too. These delivery charge escalators are becoming the new normal as utilities push infrastructure costs through riders instead of waiting for full rate cases. Gloria, have you checked if PSE&G filed for an emergency rate increase or if this went through normal BPU proceedings?
Gloria, I'm down in Harrisburg dealing with PPL territory but I monitor PSE&G cases too since I have clients in South Jersey. That Distribution Enhancement Clause increase was approved in BPU Docket ER17080543 back in November. The justification was grid modernization and storm hardening after Hurricane Sandy impacts. Unfortunately it's legitimate, but the timing and magnitude were poorly communicated to customers.
Thanks Sylvia, I found that docket filing. What's frustrating is PSE&G projected the impact at $15/month for average residential but didn't break out the commercial impact. My manufacturing client is seeing $9k/month additional costs. The BPU really needs to require better impact analysis for large commercial accounts in these filings.
Gloria and everyone, this is exactly why I've been pushing all my Ohio clients to lock in their delivery service where possible. FirstEnergy has been talking about similar infrastructure investments. The writing is on the wall - these delivery charges are going to keep climbing as utilities modernize their grids.
Jim raises a good point about locking in delivery where possible. Here in Cincinnati with Duke Energy Ohio, we've been tracking similar patterns. Gloria, have you considered helping your clients hedge against future delivery increases through long-term contracts or exploring behind-the-meter solutions like combined heat and power?
From Kansas City monitoring Evergy territory - this infrastructure cost recovery trend is nationwide. What I tell clients is to budget 3-5% annual increases in delivery charges going forward. It's not popular news but it's the reality of grid modernization costs. Gloria, at least PSE&G is being more transparent than some utilities.
Up here in Wisconsin with WE Energies we're seeing the same trend. The infrastructure riders are the new way utilities avoid the political pain of full rate cases. Gloria, I'd recommend setting up quarterly bill analysis meetings with your affected clients to track these riders and help them budget for ongoing increases.
Gloria, Randy here from Memphis. I know this thread is a bit old but I wanted to add that MLGW has been discussing similar delivery charge restructuring. The key lesson from your PSE&G experience is to stay engaged in PUC proceedings early. By the time these riders are approved, it's too late to influence the outcome. I've started tracking all major utility filings in our region proactively.
Randy, great advice on tracking the filings early. I've since set up alerts for all PSE&G rate case activity through the BPU website. It's amazing how much advance notice you can get if you're paying attention. My clients now budget for these increases 6-12 months before they hit the bills instead of getting surprised.