NEWARK, N.J., Sept. 21, 2011 /PRNewswire/ -- Public Service Electric and Gas Company (PSE&G) received approval today to lower residential gas bills by an additional 1.3 percent, or about $2.07 per winter month for the typical residential customer. This latest reduction, approved by the New Jersey Board of Public Utilities (BPU), marks the seventh decrease in a row in natural gas supply bills. PSE&G residential gas customers have saved 32 percent in supply costs since January 2009, when wholesale prices started to drop. (See chart.)
Under the new gas rates, a residential gas heating customer who uses 160 therms in a winter month, or 1,050 therms per year, will see a bill decrease of $16.28 on an annual basis. This customer's monthly winter bill of 160 therms will be $183.25, a decrease of $2.07.
The 1.3 percent decrease approved today includes a 1.1 percent reduction in natural gas supply rates, as well as a 0.2 percent decrease in the weather normalization charge, which is adjusted each fall. The BPU has authorized the company to implement the new lower gas supply rates on October 1, 2011. The lower weather normalization charge will take effect on November 1, 2011.
PSE&G makes no profit on the sale of natural gas supply 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 and Gas Company (PSE&G)