NEWARK, N.J., June 18 /PRNewswire/ -- Public Service Electric
and Gas Company (PSE&G) today received approval from state
regulators to increase its gas delivery base rates by a modest 0.9
percent. At the same time, the company agreed to lower residential
natural gas supply charges by about 5 percent, resulting in an
immediate 4 percent overall bill decrease for the typical
residential gas customer.
The New Jersey Board of Public
Utilities (BPU) approved an increase in overall gas delivery base
revenues by $26.5 million to resolve
the remainder of a combined electric and gas rate case filed in
May 2009. The amount approved today
was part of a settlement PSE&G reached last month with the BPU
staff, the Public Advocate, and the NJ Large Energy Users Group. On
June 7, the BPU approved a slight
increase in the utility's electric delivery base rates as well as a
temporary refund that, when taken together, will result in an
increase of about $1 per year for the
average residential electric customer for the next two years.
A customer's gas bill is composed of two parts: delivery, which
includes the cost of maintaining and upgrading the gas distribution
system, and supply, which reflects the cost of the natural gas
PSE&G purchases on behalf of its customers.
- Under the new gas delivery base rates approved today by the
BPU, the average residential gas heating customer who uses 160
therms in a winter month would pay $218.73, or about $2.33 more per month. The annual bill would be
$1,442.98, for an annual increase of
$14.48.
- This modest increase to residential customers, however, will be
more than offset by the company's decision to immediately lower the
gas supply portion of their bills by about 5 percent. This same
customer will now pay $207.53 in a
winter month, or $8.87 less than they
do now. The annual bill will be $1,369.48, or $59
less per year. (Other, non-residential customers who receive their
gas supply from PSE&G get a monthly rate that tracks supply
costs.)
"We're pleased that bills will be declining for our residential
gas customers," said Ralph LaRossa,
PSE&G president and COO. "However, the increase in overall
distribution base revenues is necessary for us to continue to make
the substantial investments in our gas delivery system to provide
safe, reliable gas service. Yet, our residential customers are
benefiting from lower wholesale natural gas supply prices, which we
are able to pass along at this time. We will continue to monitor
the cost of natural gas to see if additional reductions are
possible as we head toward the winter."
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 National Achievement Award for superior
electric system reliability. PSE&G is a subsidiary of Public
Service Enterprise Group Incorporated (PSEG) (NYSE: PEG), a
diversified energy company (www.pseg.com).
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SOURCE Public Service Electric & Gas Company (PSE&G)