PSE&G Proposes Increase in Winter Natural Gas Bills
May 30 2008 - 1:51PM
PR Newswire (US)
NEWARK, N.J., May 30 /PRNewswire-FirstCall/ -- Citing significant
increases in the wholesale cost of natural gas, Public Service
Electric and Gas Company (PSE&G) today proposed an approximate
20 percent increase in residential gas bills effective this fall.
The state's largest electric and gas utility proposed the change in
its annual gas supply filing with the New Jersey Board of Public
Utilities (BPU). The adjustment is necessary because wholesale
supply prices have risen substantially. A residential gas heating
customer who uses 100 therms in a winter month would pay $174.06
per month, or $28.60 more under the proposed rates. On an annual
basis, this customer's bill would be $1,076.50, or an increase of
$173.38. If approved by the BPU, the new rates would take effect
October 1, 2008. "Wholesale gas supply prices have risen
dramatically in the past few months -- from $7 per million BTUs in
January to a range of $11 to $13 -- ahead of the winter heating
season," said David Daly, vice president of energy acquisition and
technology for PSE&G. "We buy gas throughout the year and lock
in lower prices for our customers where possible. While the
industry as a whole has recovered from the devastating hurricanes
of three years ago, the market remains extremely volatile due to
record high oil prices and other commodity prices, volatility in
the financial markets, and the risk of hurricanes and cold winter
weather forecasts." Daly also noted that the company's residential
gas supply rate has remained stable for the past two years. "The
company reduced its gas supply rate in the fall of 2006 and did not
raise the gas supply rate in the fall of 2007," he said. "Wholesale
gas prices forecasted for this winter compared to the actual prices
for last winter are more than 60 percent higher. We work hard to
keep our prices as stable as possible for customers. But the
increase we will need this fall is unavoidable." Daly emphasized
that 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 website, 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) (NYSE:PEG), a diversified
energy company (http://www.pseg.com/). DATASOURCE: Public Service
Electric and Gas Company (PSE&G) CONTACT: Karen Johnson of
Public Service Electric and Gas Company (PSE&G),
+1-973-430-7734 Web site: http://www.pseg.com/
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