PSE&G has filed proposals with the New Jersey Board of Public Utilities that will lower gas bills for its residential customers by 4%, effective Oct. 1.
“This decrease in commodity prices is an opportunity to lower our gas supply rate for the third time this year, providing our customers with relief from current economic pressures, ” said Dave Johnson, vice president Customer Care & chief customer officer. “We continue to work hard to keep our rates as low as possible and help our customers manage their energy use and costs.”
If approved by the BPU, the Basic Gas Supply Service (BGSS) rate will be reduced by a little over 7 cents per therm to approximately 39.7 cents per therm, reflecting a decrease in natural gas market pricing. The BGSS rate reflects the actual cost utilities pay for natural gas, and utilities do not make any money on the supply charge.
This reduction, together with a proposed reduction in the Balancing Charge rate, will offset an increase in the Conservation Incentive Program (CIP) charge, which is designed to normalize rates due to weather and usage fluctuations. If the BPU approves the filed proposals, PSE&G’s gas bills would be the lowest in the state and typical residential customers would realize a net 4% average monthly bill reduction.
According to PSE&G, a residential customer who uses 100 therms per month will have an average monthly gas bill of about $110, or $4 less than it is now. When added to the Feb. 1 and March 1 gas supply rate reductions, PSE&G will have reduced average monthly gas bills by approximately $21 or 16% during 2023.
To access more business news, visit NJB News Now.Related Articles: