NEWARK, N.J., July 14 /PRNewswire-FirstCall/ -- Citing the
continuing decrease in the wholesale cost of natural gas, PSE&G
has proposed to lower residential gas bills this fall by an
additional 6.8 percent, or about $14
per month for the typical residential customer. The company's
annual filing with the New Jersey
Board of Public Utilities (BPU) today would follow a net 4 percent
reduction PSE&G implemented on July
9 for residential gas customers.
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.
- On June 18, the BPU approved a
modest 0.9 percent increase in residential gas bills to resolve the
utility's request to increase gas delivery rates. The new delivery
rates took effect on July 9.
- At the same time, PSE&G lowered residential bills by 5
percent because of lower supply charges, which more than offset the
increase in delivery charges. This decrease also took effect
July 9, for a net reduction of 4
percent.
If approved by the BPU, today's filing would lower gas bills
even further heading into the winter heating season. Under the
proposed new gas supply rates, a residential gas heating customer
who uses 160 therms in a winter month, or 1,050 therms per year,
would see a decrease of $94 on an
annual basis. This customer's monthly winter bill would be
$194.13, a decline of $14.26.
Including the reduction this coming fall, PSE&G will have
lowered gas bills for supply a total of approximately 28 percent
since January 2009, when wholesale
prices started to drop. PSE&G makes no profit on the sale of
natural gas and passes along what it pays to customers. If the
price of natural gas increases, the New
Jersey Board of Public Utilities 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.
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
(www.pseg.com).
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SOURCE Public Service Electric & Gas Company (PSE&G)