On March 6, 2026, the Federal Energy Regulatory Commission issued an order rejecting a proposed settlement that would have shifted transmission project costs onto PSE&G customers. The decision was based on the finding that the settlement would have disproportionately and unfairly increased costs for New Jersey customers.
The order is expected to save PSE&G customers roughly $100 million over the 2020‑2022 period, the three years that the settlement would have covered. The savings reflect the amount that would have been passed on to customers through higher rates under the settlement.
In addition, FERC directed PJM Interconnection to recalculate transmission costs dating back to 2015. The recalculation could uncover further overcharges, potentially adding to the savings for PSE&G customers, although the exact scope and methodology remain to be disclosed.
PSE&G President and COO Kim Hanemann said, "PSE&G fights for our customers every single day, and this decision shows what that commitment means in real terms. We strongly opposed this proposed settlement because it unfairly raised costs for families and businesses. We're grateful that FERC agreed, and we're proud to stand with NJ BPU and the NJ Division of Rate Counsel in protecting the people we serve."
The ruling underscores PSE&G’s proactive stance in the PJM market, where it was the only utility to oppose the settlement. By securing the order, the company has reinforced its reputation as a customer advocate and may influence future transmission cost allocation discussions across the region.
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