In acknowledgment of the fact that it has been able to keep costs down while improving reliability, PSE&G announced it is lowering gas bills for its residential customers by about 5%, effective Oct. 1.
Following a recent approval by the N.J. Board of Public Utilities, the basic gas supply service (or BGSS) rate is being 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 profit on gas supply.
The reduction of about 5% to the typical residential customer’s average monthly gas bill is mostly due to the lower BGSS rate.
After this change, a PSE&G residential customer who uses an average of 100 therms per month will have a monthly gas bill of about $104, a reduction of about $6.
Dave Johnson, vice president of customer care and the chief customer officer, said the company was thrilled that it was able to pass along savings.
“This is an opportunity to lower our gas supply rate, providing our customers with some price relief and helping to maintain affordability,” he said. “We’re pleased that we will continue to have not only the lowest gas rate in the state, but the lowest in the region.”
Johnson notes this comes at a time when the company is increasing reliability.
In the last 10 years, PSEG has replaced more than 2,245 miles of aging gas infrastructure to improve safety, reliability and customer service.
