PSE&G Lowers Default Service Rate

Public Service Electric and Gas Co. (PSE&G) announced that the New Jersey Board of Public Utilities recently approved part of PSE&G’s June 2019 residential Basic Gas Supply Service filing that includes a lower rate for residential customers

Residential customers’ BGSS-RSG gas supply rate decreased to about 34 cents per therm from 35 cents per therm, effective October 1 (all rates include losses and SUT).

PSE&G said that the Board also approved a change in the balancing charge which recovers the costs associated with providing storage and peaking services, while at the same time extending the balancing period to the months of October through May. Previously, the Balancing Charge was calculated and charged based on the five billing months of November to March

Under the BPU's order, PSE&G's Balancing Charge shall be decreased on a provisional basis, subject to refund, with interest on any net over or under-recovered balance, from the current charge of $0.102825 per therm based on a five-month balancing period, to $0.098620 based on an eight-month balancing period, effective with the billing month of October 2019 (all Balancing Charge rates include losses and SUT).

"We work hard to keep our bills as stable as possible for customers," said Michael Schmid, vice president of Asset Management and Centralized Services. "The cost of natural gas is still historically low when compared to a decade ago and costs for the 2019-20 period have decreased further."

"Overall, gas prices are marginally lower due to increased production levels compared to last year," Schmid said. "These increased production levels, combined with PSE&G’s ability to efficiently manage our gas supply contracts and purchases, result in further savings that we are pleased to pass along to customers."