TRENTON, N.J. (1010 WINS) — Millions of New Jersey residents will be facing higher energy bills starting this fall after New Jersey approved massive rate hikes for natural gas.
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The State Board of Public Utilities unanimously approved the increase on Wednesday, and the changes are slated to go into effect on Oct. 1.
Energy providers pushed for the hikes to maintain profit margins in the face of rising natural gas costs.
“The rate increase responds to the 200% increase in natural gas prices,” A spokesperson for PSE&G, New Jersey’s largest utility service, told NJ.com. “World events and increased demand have led to significant volatility in the natural gas commodity markets, putting upward pressure on the supply charge.”
The spokesperson said PSE&G, which services 1.9 million gas customers, said the new rate reflects the cost the utility is paying for natural gas, and that “utilities do not make any money on the supply charge.”
Gas bills are calculated by a combined supply charge and delivery charge.
The company reported a net loss of $2 million in the first quarter of 2022 compared to a net income of $648 million during the first quarter of 2021.
PSE&G has the largest rate hike proportional to its current rates with an increase of 24.5% or an additional $24.77 for a customer who uses 100 therms in a month.
Rates for Elizabethtown Gas Company are increasing by about 22.9% — a $25.33 increase per 100 therms.
South Jersey Gas Company customers will face an 18.6% increase for an additional $31.49 per 100 therms.
New Jersey Natural Gas customers have the lowest percentage and cost increase at 15.4% and $21.01 per 100 therms.
The state predicted the rate hike will cost customers between $250 and $375 each year depending on winter temperatures and individual energy consumption.
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