PSE&G, Penelec, and Met-Ed have announced their new NITS rates for January 2020, with significant increases. PSE&G NITS prices are increasing 31%, while Penelec and Met-Ed increased 29%.
PSE&G’s NITS rate will jump to $156,503.24 per MW/year, and the rate will go into effect in January 2020.
The impact of this NITS rate escalation is significant. While the exact increase will vary by customer, we are expecting the increase in cost to range from $.005 to $.01 per kWh).
The Network Integration Transmission Service (NITS) charge refers to PJM’s transmission rates that are regulated by the Federal Energy Regulatory Commission (FERC) and will apply market-wide to all retail electricity suppliers, including default service suppliers.
In nearly all deregulated energy markets, these charges are typically included on an all-in fixed supply contract. If there is an increase in NITS charges, suppliers are required by FERC to pass that cost onto the customer, as it must be remitted back to the governing body. All supply contracts have a change-in-law / regulation clause which describes this pass-through.
For more information, please review the links below and reach out to Stanwich Energy Advisors to discuss additional details.