Gas bills are still half what they were in 2008

Residential electric bills drop 1.9 percent today – just in time for summer

Friday, June 1, 2018 10:40 am EDT

Dateline:

Newark
"We work hard to keep our bills as stable as possible for customers"

(NEWARK, N.J. – June 1, 2018) Public Service Electric and Gas Co. (PSE&G) today filed for a decrease in residential gas bills that would take effect this fall for the winter heating season. 

 While the proposed lower gas rates would take effect later this year, bills for PSE&G’s residential electric customers are dropping 1.9 percent today just in time for summer. The lower electric bills are the result of the Basic Generation Service auction held in February for customers who receive their electric supply from PSE&G. The typical customer who uses 750 kilowatt-hours per summer month and 7,200 kilowatt-hours annually will pay $2 less per month, or $24 less per year.

 Under the gas supply filing made today, a residential gas heating customer who uses 165 therms in a winter month and 1,010 therms annually would pay about $1 less in a winter month or about $12 less per year. 

Residential gas bills are 50 percent lower than they were in 2008.  Under the proposal, the rate residential customers pay will decrease to 35 cents from 37 cents per therm. PSE&G has also requested to increase its Balancing Charge, which recovers the costs of providing storage and peaking services, to 10 cents from 9 cents per therm.

“We work hard to keep our bills as stable as possible for customers,” said Jorge Cardenas, 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 2018-2019 period have decreased further.

“Overall gas prices are lower due to increased production levels, as compared to last year,” Cardenas said. “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 that we are pleased to pass along to customers.”

 Cardenas added, “During the past nine years, PSE&G has provided significant savings to our customers as the cost of natural gas has steadily dropped. As a result, the typical customer will pay about $844 less per year than they did in 2008 – in addition to monthly bill credits that have been implemented in the last few years.”

 PSE&G makes no profit on the sale of natural gas, passing along what it pays to its customers. If the price of natural gas increases, the BPU allows the state’s natural gas utilities, including PSE&G, to recover those costs. Conversely, reductions in the gas supply price may be implemented at any time if market conditions warrant.

 

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PSE&G

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.

Forward-Looking Statements

The statements contained in this communication about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical, are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management.  When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements.  Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: http://investor.pseg.com/sec-filings.  All of the forward-looking statements made in this communication are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this communication apply only as of the date hereof.  While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at http://investor.pseg.com. Investors and other interested parties are encouraged to visit the corporate website to review new postings. The “Email Alerts” link at http://investor.pseg.com may be used to enroll to receive automatic email alerts and/or Really Simple Syndication (RSS) feeds regarding new postings.

 

  Visit PSEG at: www.pseg.com;  PSEG blog, Energize!PSEG My Alerts!

 

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Contact:

Carlotta N. Chan, 973-430-6596
Sr. Director, Investor Relations
Carlotta.Chan@pseg.com
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