Some NJ Utility Bills Dropping Next Week: See What You'll Pay

NEW JERSEY — One of New Jersey's major utility providers will lower drop its gas-billing rates for the second time this winter. Starting March 1, PSE&G customers will save a bit on heating their homes.

As natural-gas prices continue to plunge, PSE&G will reduce rates by 3 cents per therm, to approximately 47 cents per therm. So a customer using 100 therms per month in the winter will pay about $113 monthly — $3 lower than the current rates, according to the company's calculations. (The average customer uses 172 therms per month during winter, PSE&G says.)

PSE&G also cut costs for customers more significantly earlier this year, with new rates that went into effect Feb. 1. The combined price reductions will decrease heating costs for PSE&G-heated homes by 14 percent (an $18 monthly average) since its rate hikes took effect in October.

New Jersey has four natural-gas providers — PSE&G, New Jersey Natural Gas, Elizabethtown Gas and South Jersey Gas — which all increased heating costs this year. All four companies stated last summer that they needed to raise rates on gas bills to keep up with rising costs. The New Jersey Board of Public Utilities approved the following rate hikes at Sept. 7's meeting:

• 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

The rate hikes went into effect Oct. 1, 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

But the market rate for U.S. natural gas has plummeted since. Prices on the resource surged following Russia's invasion of Ukraine in February 2022, when it became apparent that Europe would need to stop buying natural gas from Russia. However, a warmer-than-usual winter both domestically and in Europe has significantly reduced demand.

Last year, the value of natural gas peaked at $9.71 per million British thermal units(MMBtu), fluctuating between $8 and $9/MMBtu from late July through mid-September. Prices fell to $2.06/MMBtu on Tuesday — their lowest mark since September 2020.

New Jersey's other three natural-gas providers, however, haven't lowered bill costs since the October rate hikes. Spokespersons for the companies told Patch last month that New Jersey Natural Gas, Elizabethtown Gas and South Jersey Gas didn't have immediate plans to lower their rates. Read more: Utility Prices For Some In NJ To Drop Feb. 1: What To Know