NEWARK - PSE&G will be lowering gas bills for its residential customers by about 5%, starting on Tuesday, as it works to maintain affordability while improving the reliability of its gas system.
The rate cut for homeowners stems from a Board of Public Utilities' decision to approve the company's plan to cut the Basic Generation Service (BGS) rate by almost seven cents per therm, bringing it to an estimated 32.8 cents per therm. This rate reflects the cost that utilities pay for natural gas, with no profit made on gas supply.
“This is an opportunity to lower our gas supply rate, providing our customers with some price relief and helping to maintain affordability,” said Dave Johnson, vice president of customer care and chief customer officer. “We’re pleased that we will continue to have not only the lowest gas rate in the state but the lowest in the region.”
For the average residential customer using 100 therms per month, the reduction will lower monthly bills by about $6, bringing the total to about $104.
In announcing the rate cut, PSE&G emphasized that it is focused on keeping electric bills for its customers low despite market fluctuations and ongoing system enhancements. The company notes, over the past 10 years, it has replaced more than 2,245 miles of aging gas infrastructure to enhance safety, reliability, and service quality.
Some important facts about the cost of electric bills in New Jersey:
- Power in this region is generated by private firms, not utilities. New Jersey utilities, such as PSE&G, do not generate electricity, they purchase electricity. The utilities only distribute and transmit electricity.
- Electricity supply comes from power plants, via nuclear or natural gas, or renewables, such as wind and solar. Their prices are set by the Basic Generation Service (BGS) auction, a national marketplace overseen by the BPU.
- New Jersey utilities do not profit from BGS charges; they are passed along to customers with no markup – a direct expense pass-thru.
