NEWARK, N.J., June 1, 2017 /PRNewswire/ -- Public Service
Electric and Gas Co. (PSE&G) today filed for a modest increase
in residential gas bills that would take effect this fall. If
approved by the New Jersey Board
of Public Utilities, this would be the first gas supply rate
increase in nine years.
While the proposed gas rates would take effect this fall, bills
for PSE&G's residential electric customers are dropping 2.5
percent today just in time for summer. The lower bills are the
result of the Basic Generation Service auction held in February for
customers who receive their electric supply from PSE&G. The
typical customer who uses 750 kilowatt-hours per summer month and
7,200 kilowatt-hours annually will pay $4 less per summer month, or $32 less per year.
Under the gas supply filing made today, a residential gas
heating customer who uses 165 therms in a winter month and 1,010
therms annually would pay about $5 –
or 3.6 percent more in a winter month. This same customer would pay
about $31 more per year.
"We work hard to keep our bills as stable as possible for
customers," said Jorge Cardenas,
vice president of asset management and centralized services. "By
efficiently managing our gas supply contracts and purchases, we
have kept our increase as small as possible."
Even with the modest increase, residential gas bills are still
50 percent lower than they were in 2008. Under the proposal,
the rate residential customers pay will increase to 37 cents from 34
cents per therm.
"While the cost of natural gas is still historically low when
compared to a decade ago, costs for the 2017-2018 period have
increased," Cardenas said. "Overall gas prices are higher due to
decreased production levels, as compared to last year. The costs
for gas from the Marcellus shale region also are higher due to an
increase in demand as a result of several pipeline expansions that
are now accessing the Marcellus region as a supply source."
Cardenas added, "During the past nine years, PSE&G has
provided significant savings to our customers as the cost of
natural gas has steadily dropped. As a result, even with the
proposed modest increase, the typical customer will pay about
$824 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.
PSE&G
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)
(NYSE:PEG), a diversified energy company.
Visit PSEG at:
www.pseg.com
PSEG on Facebook
PSEG on Twitter
PSEG on LinkedIn
PSEG blog, Energize!
Forward-Looking Statements
The statements contained in this communication about our and our
subsidiaries' future performance, including, without limitation,
future revenues, earnings, strategies, prospects, consequences and
all other statements that are not purely historical, are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from those
anticipated. Such statements are based on management's
beliefs as well as assumptions made by and information currently
available to management. When used herein, the words
"anticipate," "intend," "estimate," "believe," "expect," "plan,"
"should," "hypothetical," "potential," "forecast," "project,"
variations of such words and similar expressions are intended to
identify forward-looking statements. Factors that may cause
actual results to differ are often presented with the
forward-looking statements themselves. Other factors that could
cause actual results to differ materially from those contemplated
in any forward-looking statements made by us herein are discussed
in our Annual Report on Form 10-K and subsequent reports on Form
10-Q and Form 8-K filed with the Securities and Exchange Commission
(SEC), and available on our website:
http://investor.pseg.com/sec-filings. All of the
forward-looking statements made in this communication are qualified
by these cautionary statements and we cannot assure you that the
results or developments anticipated by management will be realized
or even if realized, will have the expected consequences to, or
effects on, us or our business, prospects, financial condition,
results of operations or cash flows. Readers are cautioned not to
place undue reliance on these forward-looking statements in making
any investment decision. Forward-looking statements made in this
communication apply only as of the date hereof. While we may
elect to update forward-looking statements from time to time, we
specifically disclaim any obligation to do so, even in light of new
information or future events, unless otherwise required by
applicable securities laws.
From time to time, PSEG, PSE&G and PSEG Power release
important information via postings on their corporate website
at http://investor.pseg.com. Investors and other interested
parties are encouraged to visit the corporate website to review new
postings. The "Email Alerts" link
at http://investor.pseg.com may be used to enroll to
receive automatic email alerts and/or Really Simple Syndication
(RSS) feeds regarding new postings.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pseg-files-for-gas-supply-rate-increase-this-fall-300467148.html
SOURCE PSE&G