PSE&G Proposes Smaller Increase in Winter Natural Gas Bills
August 27 2008 - 5:23PM
PR Newswire (US)
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) (NYSE:PEG), a diversified
energy company (http://www.pseg.com/). DATASOURCE: Public Service
Electric and Gas Company (PSE&G) CONTACT: Karen Johnson of
PSE&G, +1-973-430-7734 Web site: http://www.pseg.com/
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