PSE&G Proposes to Lower Residential Gas Bills This Fall
Gas bills are still half what they were in 2008
(NEWARK, N.J. – May 31, 2019) Public Service Electric and Gas Co. (PSE&G) today filed for a decrease in residential gas bills that would take effect this fall for the winter heating season.
Under the gas supply filing made today, a residential gas heating customer who uses 172 therms in a winter month and 1,040 therms annually would pay about $6 less per year.
Residential gas bills are about 50 percent lower than they were in 2008. Under the proposal, the rate residential customers pay will decrease to 34 cents from 35 cents per therm. PSE&G has also requested a change in its Balancing Charge that will reflect increases in the costs of providing storage and peaking services.
“We work hard to keep our bills as stable as possible for customers,” said Jorge Cardenas, vice president of asset management and centralized services. “The cost of natural gas is still historically low when compared to a decade ago, and costs for the 2019-2020 period have decreased further.
“Overall gas prices are marginally lower due to increased production levels, as compared to last year,” Cardenas said. “These increased production levels, combined with PSE&G’s ability to efficiently manage our gas supply contracts and purchases, result in further savings that we are pleased to pass along to customers.”
Cardenas added, “During the past 10 years, customers have experienced significant savings as the cost of natural gas has steadily dropped. As a result, the typical customer will pay about $880 less per year than they did in 2008 – in addition to monthly bill credits that have been implemented in the last few years.”
PSE&G makes no profit on the sale of natural gas, passing along what it pays to its customers. If the price of natural gas increases, the BPU allows the state’s natural gas utilities, including PSE&G, to recover those costs. Conversely, reductions in the gas supply price may be implemented at any time if market conditions warrant.
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Public Service Enterprise Group (NYSE: PEG) is a publicly traded diversified energy company with annual revenues of $9.1 billion and approximately 13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating subsidiaries are: Public Service Electric and Gas Company (PSE&G), PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 11 consecutive years (www.pseg.com).