Public Service Electric and Gas Co. on Friday filed for a decrease in residential gas bills that would take effect this fall for the winter heating season.
Under the gas supply filing, a residential gas heating customer who uses 172 therms in a winter month and 1,040 therms annually would pay about $6 less per year. Residential gas bills are about 50 percent lower than they were in 2008.
Under the proposal, the rate residential customers pay will decrease to 34 cents from 35 cents per therm. PSE&G has also requested a change in its balancing charge that will reflect increases in the costs of providing storage and peaking services.
“We work hard to keep our bills as stable as possible for customers,” Jorge Cardenas, vice president of asset management and centralized services, said. “The cost of natural gas is still historically low when compared to a decade ago, and costs for the 2019-2020 period have decreased further.”
“Overall gas prices are marginally lower due to increased production levels, as compared to last year,” Cardenas said. “These increased production levels, combined with PSE&G’s ability to efficiently manage our gas supply contracts and purchases, result in further savings that we are pleased to pass along to customers.”
PSE&G makes no profit on the sale of natural gas, passing along what it pays to its customers. If the price of natural gas increases, the Board of Public Utility 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.