Public Service Electric & Gas Company (PSE&G) on Friday that it has filed a proposal to lower residential gas heating bills by approximately 5%, effective Oct. 1.
The utility company stated that its strategic, long-term procurement efforts have shielded its nearly 1.9 million New Jersey customers from recent market volatility, allowing the company to maintain the lowest residential gas bills in both the state and the surrounding region.
“Keeping energy affordable for our customers requires planning, discipline and a long-term approach,” Brian Clark, senior vice president of Gas Operations said. “By securing supply in advance, maintaining access to valuable storage resources and managing costs responsibly, we’re able to help customers avoid many of the market swings that can lead to higher winter heating bills.”
Because approximately two-thirds of residential natural gas usage occurs during the peak winter months of December through March, seasonal demand typically drives market prices upward. PSE&G handles this volatility by purchasing much of its supply months—and sometimes years—in advance, rather than buying during peak demand periods when prices spike.
The company credits three primary strategies for keeping costs low and predictable:
- Proactive Procurement: Securing gas supply well ahead of the winter season to mitigate market swings.
- Strategic Storage: Buying natural gas when market prices are low and saving it in long-standing storage resources to deploy during high-demand periods.
- Geographic Advantage: Sourcing approximately 90% of its residential gas supply from the nearby Marcellus Shale region in Pennsylvania.
By sourcing the vast majority of its gas from one of the nation’s largest and most cost-effective producing areas right next door, PSE&G lowers transportation costs and significantly reduces its exposure to supply disruptions that affect more distant sources.
The year-round planning and diverse pipeline network ensure that the utility can deliver safe, reliable energy while passing cost-effective savings directly to New Jersey households ahead of the colder weather.
