NEWARK, N.J., June 1, 2016 /PRNewswire/ -- PSE&G today proposed to reduce residential natural gas bills this year by another 7.4 percent, saving customers $64 per year. In its annual filing with the New Jersey Board of Public Utilities, PSE&G said it would reduce its basic gas supply rate this winter to 34 cents from 40 cents – the lowest rate in 16 years.
"Our rates have been about 20 percent less than other utilities in the region over the past two years," said Jorge Cardenas, PSE&G vice president of asset management and centralized services. "In addition, to put this proposed rate reduction into perspective, in 2009 PSE&G's gas supply rate was $1.19 per therm. This year that rate would drop to 34 cents per therm. That is a huge savings."
As proposed, a typical residential heating customer* would see their annual bill reduced to $806 from $870 for a savings of $64 or 7.4 percent. This same customer would see their monthly winter bill reduced to $128 from $139, for a savings of $11 or about 8 percent. The new rates would take effect Oct. 1, 2016.
"As the price of natural gas continues to decline, we are pleased to once again pass these savings on to our residential customers," said Cardenas. "In addition to lower prices, PSE&G manages its portfolio of gas pipeline and storage agreements to lower gas costs and help keep gas bills affordable."
- Including the proposed reduction, since January 2009 the utility has decreased residential gas bills by 51 percent through supply rate reductions for an annual savings of $854 for PSE&G's typical residential gas heating customer.
- In addition, PSE&G gave back $152 million to customers -- in the form of bill credits -- during the last winter heating season.
PSE&G makes no profit on the sale of natural gas. The company passes along what it pays to customers. Costs for natural gas supply account for approximately half of a customer's bill.
*based on a customer using 165 therms in a winter month, and 1,010 therms per year
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.
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SOURCE Public Service Electric and Gas Company (PSE&G)