New Jersey's largest utility has reached a settlement that will generate $212 million in new revenue, but actually result in slightly lower residential customer bills thanks to federal tax cuts.

Public Service Electric & Gas announced Thursday it has reached a settlement with advocates and state regulators to receive an additional $212 million in annual revenues, including recovery of deferred storm costs. But combined with a $225 million reduction in taxes largely due to the 2017 Tax Cuts and Jobs Act, customer bills will actually decline 0.1 percent, or about $2 a year.

Commercial and industrial electric customers on average will see no bill change, while natural gas customers on average will see a reduction of 1-2 percent, the utility said.

PSE&G had initially sought an increase that would have resulted in a 1 percent increase in rates.

The New Jersey Board of Public Utilities, whose staff approved the settlement, will consider the agreement on Oct. 29. If approved, the new rates would go into effect Nov. 1.

PSE&G is the latest utility to pass along the Trump tax cuts. State regulators typically prohibit utilities from profiting from tax reductions, and require them to pass along the lower costs to customers.

Peco, the Philadelphia utility, agreed in August to give each residential customer a one-time credit of about $30 to reflect the lower federal taxes it paid this year.