NEWARK, N.J., Oct. 8, 2012 /PRNewswire/ -- PSE&G's residential customers will pay less to heat their homes with natural gas this winter. On October 1, the state's largest utility lowered residential gas bills by an additional 3.6 percent, or about $42 per year for the typical residential customer.
Since January 2009, PSE&G's residential customers have benefited from nine bill reductions for supply as the cost of gas dropped about 39 percent -- resulting in a savings of approximately $674. PSE&G's average annual residential gas bill is the lowest in the state, and the commodity portion of that bill is about the same as what residential customers paid in 2002.
"Market prices for natural gas are at historic lows, due in part to availability of lower-cost shale gas," said Jorge Cardenas, vice president-asset management and centralized services. "We're pleased to pass along these savings to our customers at a time when the economy is still challenging." In addition to lower gas bills, low natural gas prices have resulted in lower residential electric bills because gas is one of the fuels used to generate electricity.
The typical PSE&G residential customer who uses 1,050 therms of gas annually will pay $1,105.53, or about $42 less this year. The monthly winter bill for this same customer will be reduced to $168.38 from $173.56, for a savings of $5.18.
A PSE&G residential customer who uses 1,000 therms of gas annually will pay $1,062.11, for a 3.5 percent savings of $38.27 a year. The average monthly winter bill for this same customer will be reduced to $168.09 from $172.92, for a savings of $4.83.
The latest reduction comes in advance of cooler temperatures and as customers are preparing to keep their winter heating bills affordable. In addition to the price decrease, the utility offers suggestions for steps customers can take to reduce their costs even further.
Public Service Electric and Gas Company (PSE&G) is New Jersey's oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state's population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG), a diversified energy company (www.pseg.com).
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SOURCE Public Service Electric and Gas Company (PSE&G)