June 1, 2017 - 10:19 AM EDT
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PSE&G Files for Gas Supply Rate Increase This Fall

Gas bills are still half what they were in 2008 Residential electric bills drop 2.5 percent today - just in time for summer

NEWARK, N.J., June 1, 2017 /PRNewswire/ -- Public Service Electric and Gas Co. (PSE&G) today filed for a modest increase in residential gas bills that would take effect this fall.  If approved by the New Jersey Board of Public Utilities, this would be the first gas supply rate increase in nine years.

Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company. Its operating subsidiaries are: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Long Island.

While the proposed gas rates would take effect this fall, bills for PSE&G's residential electric customers are dropping 2.5 percent today just in time for summer. The lower 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 $4 less per summer month, or $32 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 $5 – or 3.6 percent more in a winter month. This same customer would pay about $31 more per year. 

"We work hard to keep our bills as stable as possible for customers," said Jorge Cardenas, vice president of asset management and centralized services. "By efficiently managing our gas supply contracts and purchases, we have kept our increase as small as possible."    

Even with the modest increase, residential gas bills are still 50 percent lower than they were in 2008.  Under the proposal, the rate residential customers pay will increase to 37 cents from 34 cents per therm.

"While the cost of natural gas is still historically low when compared to a decade ago, costs for the 2017-2018 period have increased," Cardenas said. "Overall gas prices are higher due to decreased production levels, as compared to last year. The costs for gas from the Marcellus shale region also are higher due to an increase in demand as a result of several pipeline expansions that are now accessing the Marcellus region as a supply source."

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, even with the proposed modest increase, the typical customer will pay about $824 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.

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.

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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.


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pseg-files-for-gas-supply-rate-increase-this-fall-300467148.html


Source: PR Newswire (June 1, 2017 - 10:19 AM EDT)

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