>PSE&G to Lower Residential Natural Gas Bills by Additional 5 Percent
Reduction is on top of 5 percent decrease in July and 6.8 percent decrease in September
Gas bills down 31 percent – or about $500 annually – since Jan. 2009
(December 6, 2010 – Newark, NJ) – PSE&G announced today that it has lowered residential gas bills by an additional 5 percent, or nearly $10 per month for the typical residential customer. This latest reduction for supply costs follows a 5 percent reduction in July and a 6.8 percent reduction in September for residential gas customers.
Including this most recent reduction, PSE&G has lowered gas bills a total of approximately 31 percent – or about $500 annually — since January 2009, when wholesale prices started to drop. PSE&G customers today are paying the same supply rate per therm of gas as they did in January 2003.
Under the new gas supply rates, a residential gas heating customer who uses 160 therms in a winter month, or 1,050 therms per year, will see a bill decrease of $64.68 on an annual basis, for a total bill of $1,221.08. This customer’s monthly winter bill will be $184.91, or $9.86 less.
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, the New Jersey Board of Public Utilities 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
