PEG Public Service Enterprise Group Inc

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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