PSE&G Proposes Lowering Gas Bills by 4%, Effective October 1
Lower commodity prices enabling a third decrease this year
(NEWARK, N.J. – June 1, 2023) PSE&G today filed proposals with the New Jersey Board of Public Utilities that will lower gas bills for its residential customers by 4%, effective October 1, 2023.
“This decrease in commodity prices is an opportunity to lower our gas supply rate for the third time this year, providing our customers with relief from current economic pressures, ” said Dave Johnson, vice president Customer Care & Chief Customer Officer. “We continue to work hard to keep our rates as low as possible and help our customers manage their energy use and costs.”
If approved by the BPU, the Basic Gas Supply Service (BGSS) rate will be reduced by a little over 7 cents per therm to approximately 39.7 cents per therm, reflecting a decrease in natural gas market pricing. The BGSS rate reflects the actual cost utilities pay for natural gas, and utilities do not make any money on the supply charge.
This reduction, together with a proposed reduction in the Balancing Charge rate, will offset an increase in the Conservation Incentive Program (CIP) charge, which is designed to normalize rates due to weather and usage fluctuations. If the BPU approves the filed proposals, PSE&G's gas bills would be the lowest in the state and typical residential customers would realize a net 4% average monthly bill reduction.
A PSE&G residential customer who uses 100 therms per month will have an average monthly gas bill of about $110, or $4 less than it is now. When added to the February 1 and March 1 gas supply rate reductions, PSE&G will have reduced average monthly gas bills by approximately $21 or 16% during 2023.
PSE&G has worked to keep gas rates low despite market price fluctuations. The typical PSE&G residential gas customer's bill will be approximately 34% lower than in 2008 and approximately 47% lower when allowing for inflation.
Customers who are struggling to pay bills are encouraged to take advantage of all available assistance including LIHEAP and the New Jersey Universal Service Fund. PSE&G played a big role in helping 220,000 customers in need receive over $450 million in payment assistance funds in 2022 through state and federal programs, and similar efforts continue this year. Information on payment assistance programs is available here.
We also encourage customers to take advantage of our programs, tips and tools to help reduce energy use and manage monthly bills. Over the past four years, through our energy efficiency programs, more than 60,000 customers have participated in our no cost or low cost home energy assessments with nearly 14,000 of them from a household with a low to moderate-income level. Many customers have received rebates on a variety of energy-saving products and we have distributed more than 11 million LED lightbulbs to our customers.
PSE&G customers also can enroll in our Equal Payment Plan (EPP) to manage energy costs and avoid seasonal fluctuations. The EPP divides the total cost of your energy use into equal monthly payments, making energy bills more predictable.
Public Service Electric & Gas Co. is New Jersey’s oldest and largest gas and electric delivery public utility, as well as one of the nation’s largest utilities. PSE&G is the 2022 Edison Award recipient from the Edison Electric Institute. PSE&G has won the ReliabilityOne® Award for superior electric system reliability in the Mid-Atlantic region for 21 consecutive years. For the second consecutive year, PSE&G is the recipient of the ENERGY STAR Partner of the Year award in the Energy Efficiency Program Delivery category. In addition, J.D. Power named PSE&G number one in customer satisfaction for both Residential Electric and Natural Gas Service in the East among Large Utilities. PSE&G is a subsidiary of Public Service Enterprise Group Inc., (PSEG) (NYSE:PEG), a predominantly regulated infrastructure company focused on a clean energy future and has been named to the Dow Jones Sustainability Index for North America for 15 consecutive years (www.pseg.com).