PSE&G Lowering Default Service Rates

Public Service Electric and Gas Co. (PSE&G) is lowering its default service natural gas rate, as the New Jersey BPU approved, on a provisional basis, PSE&G’s June gas supply filing

As a result of this approval, the rate that basic gas supply service (BGSS) residential customers pay will decrease to 35 cents per therm ($0.349579 cents per therm) from the current charge of about 37 cents per therm.

PSE&G also received approval to increase its Balancing Charge, which recovers the costs of providing storage and peaking services, to 10 cents ($0.102825 per therm, including losses and SUT) from 9 cents per therm ($0.090052 per therm, including losses and SUT).

"Overall gas prices are lower due to increased production levels, as compared to last year," said Jorge Cardenas, vice president of asset management and centralized services for PSE&G. "These historically high production levels are resulting in abundant gas supplies to meet market needs. All of these factors -- combined with PSE&G's ability to efficiently manage our gas supply contracts and purchases -- result in further savings."