PEG Public Service Enterprise Group Inc

First gas supply increase in three years for PSE&G's residential customers NEWARK, N.J., Oct. 3 /PRNewswire-FirstCall/ -- Recognizing that the cost of natural gas has increased substantially since last winter, the New Jersey Board of Public Utilities (BPU) today approved PSE&G's request to increase natural gas supply rates by 14.3 percent for the average residential customer. It is the first gas supply increase in three years. David Daly, vice president of energy acquisition and technology for PSE&G, said the increase is necessary because wholesale supply prices have risen significantly during the past few years. "Although wholesale gas prices forecasted for this winter have come down in the past month or so, we are still looking at higher prices when compared with last winter," Daly said. "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 will pay $165.93 per month, or $20.47 more under the new rates. On an annual basis, this customer's bill for 606 therms will be $1,027.24, or an increase of $124.12. 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. 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 Enterprise Group (PSEG) CONTACT: Karen Johnson for Public Service Electric and Gas Company (PSE&G), +1-973-430-7734 Web Site: http://www.pseg.com/

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