Public Service Enterprise Group Incorporated (PEG, Financial) has announced a significant development in its ongoing efforts to adjust its electric and gas distribution rates. The company, along with its subsidiary Public Service Electric and Gas Company (PSE&G), has reached a settlement agreement with the staff of the New Jersey Board of Public Utilities (BPU), the New Jersey Division of Rate Counsel, and other involved parties. This settlement aims to conclude PSE&G’s base rate case that was initially filed in December 2023.
The proposed settlement, which is pending approval by the BPU at an upcoming meeting, outlines a $505 million increase in annual revenues for PSE&G. This adjustment is based on maintaining an unchanged return on equity (ROE) of 9.6% and an increased equity ratio of 55%. The agreement marks a crucial step for PSE&G as it seeks to enhance its financial stability and continue providing reliable services to its customers.
This development is part of PSEG's broader strategy to ensure sustainable growth and meet the evolving energy needs of its service areas. Investors and stakeholders will be closely monitoring the BPU's decision, as it will have significant implications for the company's financial performance and future operations.
Should you invest in Public Service Enterprise Group Inc (PEG, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Public Service Enterprise Group Inc (PEG) stock research here.
