Utility Prices For Some In NJ To Drop Feb. 1: What To Know

NEW JERSEY — Natural gas prices hit their lowest price in years — months after state officials allowed rate hikes for all of New Jersey's providers. But even amid the major dip in the resource's cost, three of the state's four natural gas utility companies will maintain their increased costs for heating homes.

A mild winter reduced the demand for heat. As a result, the value of U.S. natural gas hit its lowest mark since May 2021 on Thursday, falling below $3 per million British thermal units (MMBtu).

PSE&G will lower its natural gas bills starting Feb. 1, with a cut of $15 per month for customers using 100 therms in that span. The average customer uses 172 therms per month in winter, according to the utility company. Read more: NJ Gas Bills Will Drop In February, PSEG Says (Here's How Much)

New Jersey's other three natural gas providers — New Jersey Natural Gas, Elizabethtown Gas and South Jersey Gas — have no plans as of Wednesday to lower their rates.

The New Jersey Board of Public Utilities approved rate hikes for all four companies Sept. 7, adding at least $250 per year to the cost of the average heating bill. Read more: NJ To Pay More For Heat As State Approves Gas Rate Hikes for Millions

The natural gas providers argued that rising costs forced them to raise prices. Last year, the value of natural gas peaked at $9.71/MMBtu, fluctuating between $8 and $9 from late July through mid-September. The price, however, has tumbled since summer and has taken a nosedive since Dec. 13, when it cost $6.70.

But the gas rates at three of New Jersey's major utility companies will remain the same — for now.

"New Jersey Natural Gas is committed to providing customers with safe and reliable service at a reasonable cost," Michael Kinney, a company spokesperson, told Patch. "We continue to monitor market conditions and look for opportunities that benefit our customers. We do not have anything to announce at this time."

South Jersey Industries, which owns South Jersey Gas and Elizabethtown Gas, also has no immediate plans to cut rates, a company spokesperson said. The company says it doesn't profit off gas delivered to customers.

"While we are currently reviewing our gas commodity-related rates, we have no immediate plans to adjust these rates," Krystle Straus, a South Jersey Industries spokesperson, told Patch via email. "However, we encourage customers to take advantage of our robust energy efficiency programs and energy-saving tips, products and programs offered on our utility websites Elizabethtowngas.com or Southjerseygas.com."

However, stock South Jersey Industries stock prices shot up 40 percent — from $23.48 to $32.84 — on Feb. 24, when Russia invaded Ukraine and markets prepared for volatility in energy pricing. The stock price has since fluctuated between the low and mid-30s and hasn't dipped into the 20s since.

Additionally, the state utility board approved the sale of South Jersey Industries on Wednedsay to Infrastructure Investments Fund — a $24 billion investment vehicle within J.P Morgan. The investors and the utility company expect to complete the transaction Feb. 1.

The state utility board approved the following rate hikes at Sept. 7's meeting, which went into effect Oct. 1:

• PSE&G: 24.5 percent increase, up $24.77 a month and $258.72 per year
• New Jersey Natural Gas: 15.8 percent increase, up $21.56 per month and $258.72 annually
• Elizabethtown Gas: 22.9 percent increase, or $25.33 a month and $303.96 per year
• South Jersey Gas Company: 18.6 percent increase, up $31.49 per month and $377.88 a year

People in the New York-Newark-Jersey City area saw a 23.2 percent rise in the price of all utility (piped) gas service from December 2021 to December 2022, according to the most recent Consumer Price Index data from the U.S. Bureau of Labor Statistics.