PSE&G Proposes to Lower Residential Natural Gas Bills by 6.8 Percent, on Top of 4 Percent Reduction Implemented July 9

NEWARK, N.J., July 14 /PRNewswire-FirstCall/ -- Citing the continuing decrease in the wholesale cost of natural gas, PSE&G has proposed to lower residential gas bills this fall by an additional 6.8 percent, or about $14 per month for the typical residential customer. The company's annual filing with the New Jersey Board of Public Utilities (BPU) today would follow a net 4 percent reduction PSE&G implemented on July 9 for residential gas customers.

A customer's gas bill is composed of two parts: delivery, which includes the cost of maintaining and upgrading the gas distribution system, and supply, which reflects the cost of the natural gas PSE&G purchases on behalf of its customers.

• On June 18, the BPU approved a modest 0.9 percent increase in residential gas bills to resolve the utility's request to increase gas delivery rates. The new delivery rates took effect on July 9.
• At the same time, PSE&G lowered residential bills by 5 percent because of lower supply charges, which more than offset the increase in delivery charges. This decrease also took effect July 9, for a net reduction of 4 percent.

If approved by the BPU, today's filing would lower gas bills even further heading into the winter heating season. Under the proposed new gas supply rates, a residential gas heating customer who uses 160 therms in a winter month, or 1,050 therms per year, would see a decrease of $94 on an annual basis. This customer's monthly winter bill would be $194.13, a decline of $14.26.

Including the reduction this coming fall, PSE&G will have lowered gas bills for supply a total of approximately 28 percent since January 2009, when wholesale prices started to drop. PSE&G makes no profit on the sale of natural gas and passes along what it pays to customers. If the price of natural gas increases, the New Jersey Board of Public Utilities 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 (www.pseg.com).

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SOURCE Public Service Electric & Gas Company (PSE&G)

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