PSE&G Proposes Modest Increase in Winter Natural Gas Bills
Public Service Electric and Gas Co. (PSE&G) today proposed a modest 2 percent increase in residential gas bills effective October 1. The state’s largest electric and gas utility proposed the change in its annual gas supply filing with the New Jersey Board of Public Utilities (BPU).
The adjustment is necessary because wholesale supply prices are expected to remain high. A residential gas heating customer who uses 100 therms in a winter month would pay $149.26 per month, or $2.91 more under the proposed rates. On an annual basis, this customer’s bill would increase $17.68. If approved by the BPU, the new rates would take effect October 1, 2007.
“While wholesale gas supply prices have stabilized from where they were a year ago, they are still projected to remain high – in the $9 to $10 per million BTU range -- heading into the winter heating season,” said Frederick Lark, vice president of business analysis for PSE&G. “We continue to buy gas throughout the year and lock in lower prices for our customers where possible. While the industry as a whole has recovered from the devastating hurricanes of two years ago, the market remains susceptible to additional run-ups in price due to hurricanes or colder winter weather.”
PSE&G makes no profit on the sale of natural gas, and passes along what it pays to customers. If the price of natural gas increases later this winter, the BPU allows the state’s natural gas utilities, including PSE&G, to recover those costs. Reductions in the gas supply price may be implemented at any time if market conditions warrant.
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