BPU approves multiple tariff changes, transfers and a water‑company merger; all motions pass

The Board of Public Utilities on Jan. 14 approved a series of staff-recommended tariff changes, reconciliations and a merger intended to move remaining utility account balances away from ZEC recovery components and toward customer-assistance programs.

Stacy (staff), presenting item 2A, said PSE&G had petitioned on Sept. 30, 2025 to modify the refund of excess collections credit in its ZEC recovery charge and to transfer remaining balances to an energy efficiency and renewable energy program component. Staff recommended eliminating the ZEC recovery charge tariff, transferring the cumulative balance to the universal service fund component of the societal benefits charge (SBC), and directing PSE&G to file revised tariffs by Feb. 1; the board approved the recommendation on a roll-call vote.

Similar staff recommendations were approved for Butler Electric Company and Atlantic City Electric: both petitions sought reconciliation of recovery charges and staff asked the board to eliminate ZEC-related tariff components and authorize the transfer of cumulative balances to customer-assistance accounts or to use remaining balances to help senior customers. The board approved both motions on unanimous roll call.

The board also approved a finalized stipulation for PSE&G's electric conservation incentive program customer-class rates, which staff said would leave customers with no further monthly bill impact beyond a prior provisional order that had produced a roughly $0.99 monthly decrease for a typical residential customer under the provisional terms. The board approved a stipulation resolving a petition by 'JCPNL' to recover sales losses tied to energy efficiency and peak-demand reduction programs; staff recorded an estimated $0.38 monthly increase for a typical residential customer under that stipulation.

On water matters, staff recommended and the board approved granting an unopposed motion to allow Middlesex Water Company to intervene in a New Jersey American Water filing to modify purchased water and wastewater adjustment clause rates. Separately, the board approved a stipulation resolving a petition by New Jersey American Water to change a COVID-related special charge that staff said will increase the average GMS (customer) bill by 5¢.

Christine Lynn, acting as the board's chief economist for item 5c, presented a joint petition by Middlesex Water Company and Pinelands Water and Waste Water Companies seeking approval of a merger without a change in control. "Staff has analyzed the merger details and commitments contained in the petition and the stipulation, and find that the proposed transaction satisfies the board's requirements under New Jersey statutes and the administrative code related to mergers," Lynn said. She told commissioners the transaction, under the stipulation of settlement, would not change customer rates, employee levels or the level of service to customers. The board approved the stipulation on a unanimous roll call.

Votes at a glance: - PSE&G: approved staff recommendation to eliminate ZEC recovery charge tariff and transfer balances to the universal service fund; board directed filing of revised tariffs by Feb. 1. (Motion moved and seconded; roll call: Commissioner Crystal De Lue — Yes; Commissioner Bange — Yes; President Gul Sidoti — Yes.) - Butler Electric Company: approved staff recommendation to eliminate ZEC tariff component and authorize use of remaining balance to assist senior customers; file revised tariffs by Feb. 1. (Unanimous yes.) - Atlantic City Electric: approved elimination of ZEC recovery tariff and transfer of balances to universal service fund. (Unanimous yes.) - PSE&G conservation incentive stipulation: approved finalization of provisional stipulation; no further monthly impact to customers beyond previously authorized provisional change. (Unanimous yes.) - 'JCPNL' rider stipulation: approved; staff estimated a $0.38 monthly increase for a typical residential customer. (Unanimous yes.) - New Jersey American Water purchased water/wastewater clause: granted Middlesex Water's unopposed motion to intervene; staff recommendation approved. (Unanimous yes.) - New Jersey American Water COVID-related special charge: approved stipulation that staff said will raise average GMS customer bills by 5¢. (Unanimous yes.) - Middlesex Water / Pinelands Water merger: approved stipulation; staff said no rate, staffing or service changes will result. (Unanimous yes.)

Why this matters: The actions reallocate remaining regulatorily collected balances away from ZEC recovery components toward universal service and customer-assistance accounts and finalize several stipulations that will affect small, quantified monthly bill changes for typical residential customers; the merger approval preserves current rates and service, according to staff. Several tariff revisions require utilities to file revised tariffs by Feb. 1.

The board took no votes that failed during the meeting; after business concluded, the board previewed a new clean-energy website and adjourned.