Dive Summary:
- Public Service Gas & Electric (PSE&G) is estimating that the cost of restoring power after Hurricane Sandy and a subsequent nor'easter at between $250 million and $300 million, the majority of which will almost certainly be passed onto the utility's customers.
- In addition to power restoration, the utility had to replace 1,000 transformers after the storms and its crews are still working to repair its system.
- PSE&G, New Jersey's largest utility, will ask regulators for permission to recover these costs in future years, a request that is generally approved by regulators in the aftermath of major storms.
From the article:
The utility says the estimate does not include the cost of beefing up its infrastructure to better protect it from future storms. For that, the company would need to ask regulators for permission to install new equipment and to charge ratepayers for it.
Jersey Central Power & Light, the state's second-largest utility, said Friday it expects to eventually amend an existing rate request to factor in losses from Sandy. The storm knocked out power to about 1.2 million JCP&L customers. The standing request seeks permission from state regulators to boost the utility's rates by 1.4 percent to improve its infrastructure and cope with losses from two major weather events that occurred in 2011. ...
