Public Service Electric & Gas filed proposals with the New Jersey Board of Public Utilities on Friday that will lower gas bills for its residential customers by 6.1%, effective Oct. 1.
If approved by the BPU, the Basic Gas Supply Service rate will be reduced by almost 7 cents per therm, to approximately 32.8 cents per therm. The BGSS rate reflects the actual cost utilities pay for natural gas, and utilities do not make any money on the supply charge.
The proposed reduction to the BGSS rate and small increase to the Balancing Charge rate will result in an overall customer bill reduction. If the BPU approves the filed proposal, PSE&G’s gas bills would be one of the lowest in the state, and typical residential customers would realize a net 6.1% average monthly bill reduction.
A PSE&G residential customer who uses an average of 100 therms per month will have a monthly gas bill of about $102.70, or $6.75 less than it is now. PSE&G has maintained low gas rates despite market price fluctuations, with gas rates being one of the lowest in the state for over 15 years. The typical PSE&G residential gas customer’s bill will be approximately 33.40% lower than in 2008 and approximately 47.59% lower when allowing for inflation.
Dave Johnson, vice president, customer care, and chief customer officer, said the company was thrilled to make the proposal.
“This is an opportunity to lower our gas supply rate, providing our customers with a little bill relief and helping to maintain affordability,” he said. “We’re pleased that we will continue to have one of the lowest gas rates in the state.”
PSE&G also noted that customers who need assistance paying their bill can take advantage of numerous assistance programs, including LIHEAP and the New Jersey Universal Service Fund.
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