Public Service Electric and Gas (PSE&G), New Jersey’s largest gas and electric utility, announced on September 15 that it will reduce its basic gas supply rate to 40 cents per therm from 45 cents per therm, effective October 1.
Also included in PSE&G’s latest adjustments is a small reduction to the balancing charge – which will be cut to 9.4 cents from 9.6 cents. The “balancing charge,” also called the “customer select charge,” is a per-therm fee that can change monthly, ranging from a few cents per therm to about 8 cents per therm. It covers the costs for maintaining appropriate pressure in the utility’s pipe system.
“Natural gas prices have dropped significantly and we are pleased to be able to pass on our cost savings to our customers,” said Jorge Cardenas, PSE&G vice president of Asset Management and Centralized Services, adding, “In addition to the abundant supply of natural gas from the nearby Marcellus Shale Formation, PSE&G has managed its portfolio of gas pipeline and storage agreements to lower gas costs for its residential customers and help keep heating bills down when the temperature drops.”