NEWARK, N.J., Aug. 27 /PRNewswire-FirstCall/ -- Citing recent decreases in the wholesale cost of natural gas, Public Service Electric and Gas Company (PSE&G) today proposed to lower the increase it will need in residential gas bills this fall by about one third, to approximately 14.3 percent. The company had filed on May 30, 2008 with the New Jersey Board of Public Utilities (BPU) for an increase of 20 percent based on gas supply costs at that time.
The increase is necessary because wholesale supply prices have risen substantially since the fall of 2007. "Although wholesale gas prices forecasted for this winter have come down in the past few weeks, we are still looking at significantly higher prices when compared with last winter," said David Daly, vice president of energy acquisition and technology for PSE&G. "If approved, this supply increase will be the first for PSE&G residential customers since 2005. The company had reduced its gas supply rate in the fall of 2006 and did not raise the gas supply rate in the fall of 2007. We work hard to keep our prices as stable as possible for customers. But the increase we need this fall is unavoidable."
A residential gas heating customer who uses 100 therms in a winter month would pay $165.93 per month, or $20.47 more under the new proposed rates. On an annual basis, this customer's bill for 606 therms would be $1,027.24, or an increase of $124.12. If approved by the BPU, the new rates would take effect October 3, 2008.
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 later this winter, 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.
Customers can save money this winter by using gas wisely. Money-saving tips can be found on the company's Web site, pseg.com. Customers can also sign up for the equal payment plan, which spreads energy costs over 12 months.
Public Service Electric and Gas Company (PSE&G) is New Jersey's oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state's population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) , a diversified energy company (http://www.pseg.com/).
