Hurricane Floyd will not be a windfall for the Public Service Electric and Gas Co. (PSE&G) after all. The New Jersey-based utility backed away from discounts on flood-damaged hot water heaters and furnaces, due to tariff restrictions and concerns of cross-subsidization.
According to company spokesperson Paul Rosengren, PSE&G attorneys said that discounts were illegal because the utility is prohibited from subsidizing its service business with ratepayer money, which could happen if it lowered repair prices.