Delivery Service Adjustment (DSA)
This line item on the bill, which can be a credit returned to you or a charge, creates a better way to account for unpredictable costs that are part of providing you with electric service. The goal is long-term electric rate stability.
PSEG Long Island’s annual budget is based on what we anticipate it will cost to provide you with safe, reliable and resilient energy, along with all of our other services. The budget includes a certain amount for things like storm repairs to poles and wires.
The Delivery Service Adjustment (DSA) reconciles the difference between some of our budgeted expenses and the actual cost. When costs are less than expected, like when storms haven’t been so bad, the DSA is a credit to refund money to customers. When the unexpected happens and costs exceed the projected budget, like when there’s a really bad storm, the DSA is applied to the bill as a charge to recover those costs.
Storm repairs are just one unpredictable cost. There are also costs related to borrowing money for electric system improvements. These costs have always been part of your electric bill. The DSA provides a new level of transparency and a better way of accounting for those costs.
Less unpredictability creates greater financial stability – and that pays off, for example, with better interest rates on loans.
Frequently Asked Questions
- What is the Delivery Service Adjustment (DSA)?
It is a rate mechanism that reconciles the difference between some of our budgeted expenses included in base delivery rates and the actual costs. Some costs, like for storm repairs, are difficult to predict, so the DSA is used to recover costs in excess of our budget or return money to customers.
PSEG Long Island’s budget is based on what we anticipate it will cost to serve customers and provide safe, reliable and resilient energy. But what we expect to spend and what we actually spend, could be impacted by forces beyond control, like a very bad storm. Customers have always paid for these types of costs, but the DSA provides a new level of transparency and a better way of accounting for those costs.
- Will the DSA appear as a new item on my bill?
Yes, and it can be a charge or a credit. If actual costs exceed our budget, like after a major storm, it may be a charge. If actual costs are lower than expected, the DSA is a credit to return money to customers. For 2017, the DSA is a credit.
- Is the DSA the same for all customers?
Yes, when the DSA is set each year, the adjustment is the same for each of the following groups of customers:
- All residential customers
- Small commercial customers
- Large commercial customers
- Mandatory Time-of-Use (TOU) commercial customers
- What are the types of costs included in the DSA?
The DSA includes costs related to repairs following storms and costs to borrow money for investment in electric system improvements.
- How often will the DSA change?
Once per year. Each year, our costs will be tracked over a 12-month period and the DSA will be modified as of January 1.