NJ residents will pay less for their natural gas bill this winter thanks to a decision to cut rates the other day:
New Jersey utility regulators approved the largest reduction in natural gas prices in state history Wednesday.
The state Board of Public Utilities voted unanimously to share the savings from lower wholesale rates with retail consumers. The lower prices are effective immediately and are expected save the typical household $262 to $477 a year — a reduction of 23 percent to 37 percent.
It’s a pretty significant cut that people should notice in their wallet:
A typical New Jersey home that uses 1,000 therms of natural gas — a standard measure of heat — paid between $1,671 and $1,743 last year.
PSE&G, the state’s largest utility, will charge 89 cents a therm as a result of Wednesday’s vote, compared with $1.19 in October. That translates into a $262 annual savings for a typical home.
South Jersey Gas Co. customers are expected to save $325.
“This is the biggest rate reduction for natural gas in New Jersey history,” said Jerry May, director of the Division of Energy at the state Board of Public Utilities.
If things stay the way they are, we can expect a cut in electricity rates for next year because of the lower cost for utilities to generate the electricity.