New Jersey Board of Public Utilities Approves New PSE&G Gas Delivery Rates

But impact on residential customers to be offset by lower gas supply charges

Jun 18, 2010, 14:48 ET from Public Service Electric & Gas Company (PSE&G)

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 (

Want to know what's new at PSEG? Go to and sign up to have our press releases and weekly environmental commentaries sent right to your inbox.

SOURCE Public Service Electric & Gas Company (PSE&G)