PSE&G Proposes Lowering Default Service Rate To Lowest Level in 16 Years

Public Service Electric and Gas Company (PSE&G) has proposed further reducing its residential basic gas supply service (BGSS) rate for residential customers to 34 cents per therm from 40 cents per therm – the lowest rate in 16 years.

The new rate would take effect Oct. 1, 2016.

PSE&G noted that its rates have been about 20 percent less than other utilities in the region over the past two years

In 2009 PSE&G's gas supply rate was $1.19 per therm.

In addition to low market prices for natural gas, PSE&G attributed the decline in the BGSS rate to management of its portfolio of gas pipeline and storage agreements

Separately, New Jersey Natural Gas (NJNG) announced it will provide a bill credit to residential and small commercial default service customers for the 2016-2017 winter season. The full amount of the bill credit will be determined in fall 2016, and NJNG estimates residential heating and small commercial customers will benefit from a total reduction of $55.5 million from November 2016 through February 2017. The credit will vary based on individual usage and weather patterns over the four months.

Additionally, New Jersey Natural Gas has proposed a 5.5 percent decrease in its BGSS rate