PSE&G Plans To Slash Residential Gas Bills by 7.4%

Public Service Electric and Gas Company

revealed that it plans to cut down residential natural gas bills by another 7.4 percent this year. That would mean that consumer could save $64 per year. PSE&G said in its annual filing with the New Jersey Board of Public Utilities that it would slash its basic gas supply rate this winter to 34 cents from 40 cents, which is the lowest rate in 16 years. The company's VP of asset management and centralized services, Jorge Cardenas, said, "Our rates have been about 20 percent less than other utilities in the region over the past two years. In addition, to put this proposed rate reduction into perspective, in 2009 PSE&G's gas supply rate was$1.19 per therm. This year that rate would drop to 34 cents per therm. That is a huge savings." He added further that "As the price of natural gas continues to decline, we are pleased to once again pass these savings on to our residential customers. In addition to lower prices, PSE&G manages its portfolio of gas pipeline and storage agreements to lower gas costs and help keep gas bills affordable." PSE&G said that a typical residential heating customer would be able to see their annual bill reduced to $860 from $870 with the proposed rate. The same customer could also see their monthly winter bill reduced to $128 from $139, for a savings of $11 or about 8 percent. The company indicated that the new rates would take effect from Oct. 1. The indicated that including the proposed reduction, the utility has decreased residential gas bills by 51 percent through supply rate reductions since 2009 for an annual savings of $854 for PSE&G's typical residential gas heating customer. On Wednesday, the stock traded 0.29 percent higher.