NEWARK, N.J., Feb. 13, 2015 /PRNewswire/ -- Public Service Electric and Gas Co. (PSE&G) today said the impact of the recent Basic Generation Service electricity supply auction on residential electric bills will be a 2.1 percent increase on June 1, when new electric rates take effect. The utility had previously said the impact would be an increase of 5.1 percent.
"The bill impact information we provided to the NJ Board of Public Utilities at the conclusion of the auction was inaccurate," said Jorge Cardenas, vice president of asset management and centralized services. "While the wholesale prices for electricity secured in the auction are correct, we made a calculation error in how the new prices would affect customer bills on June 1. We are pleased to report that the typical residential bill will increase by 2.1 percent and not the 5.1 percent we had indicated. It was our calculation error and we sincerely regret both the error and any confusion that may have resulted."
The bill for a PSE&G residential customer who uses the statewide average of 650 kilowatthours per month will pay $123.82 a month, or $2.58 more per month when averaged over the entire year.
"We commend the Board of Public Utilities for once again approving this efficient and competitive way to secure electricity on behalf of our customers," Cardenas said. "Our continued investment in transmission infrastructure, along with our commitment to renewable energy sources, contributed to the modest increase to typical residential bills."
Cardenas said the transmission investments are mandated by regional grid operator PJM to ensure grid stability in PSE&G's densely populated service territory, enabling the utility to ensure the delivery of safe, reliable electricity. "Our customers are benefitting from a more modern electric system that will provide strong reliability for many years to come," he added.
Although electric bills are rising slightly, most PSE&G customers also receive gas service and are benefitting from lower gas bills this winter. PSE&G lowered the price of residential gas supply on October 1, 2014 to 45 cents per therm -- its lowest rate in 14 years. In addition, the utility is providing significant bill credits to residential gas customers for usage from November 2014 to March 2015 – saving the typical residential gas customer more than $200 during the five-month period.
Since January of 2009, reductions in the cost of gas supply have lowered bills 44 percent, for an annual savings of $741 for PSE&G's current typical residential gas heating customer. Since 2012, PSE&G has issued bill credits that reduced customers' supply portion of their bills by a total of approximately $400.
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 and Gas Co. (PSE&G)
