Residential customers of four utilities delivering natural gas in New Jersey will be paying between 2.82% to 10.6% more in increased commodity costs starting Sept. 1, according to orders approved by the New Jersey Board of Public Utilities (BPU). The orders were the latest in a round of increases being approved for utilities across the country as the price of natural gas increases.

PSE&G, which recorded the largest percentage increase, nevertheless still boasts the lowest rate of about $8.70/dth. New Jersey Natural Gas (NJNG) will see a 4.2% increase in commodity costs to $9.46/dth, while customers of South Jersey Gas Co. will pay costs of about $9.30/dth, a rise of 4.4%. Commodity rates for Elizabethtown Gas will go up 2.82%. And that may not be the end of the story. The new rate schedules are for residential customers only. Industrial customers pay based on calculations each month.

When PSE&G filed for the adjustment back in June, wholesale prices for natural gas had increased about 17%. They continue to rise. “Today, forward market prices are up even more and are still very unpredictable,” said Frederick Lark, vice president of business analysis for PSE&G. “Fortunately, we’ve been able to minimize the increase for our customers by buying gas at more competitive prices. We have hedged two thirds of this winter’s gas supply at prices below current quotes for winter gas supply.”

A PSE&G residential gas heating customer who uses 200 therms in a winter month will pay about $152 more a year under the new rates, the company estimated.

NJNG also has programs to help contain the natural gas costs. These helped save customers about $256 million since the programs started up in 1992, or approximately 4% on their bills each year.

“We’re committed to doing everything we can to provide our customers with safe, reliable and affordable service, including making every effort to moderate the impact of continuing price volatility in the wholesale natural gas market,” said Laurence M. Downes, NJNG chairman and CEO. “By successfully managing our storage contracts and effectively minimizing price risk, we have saved our customers about $36 million in natural gas costs during the last heating season alone.

“The current tight balance of natural gas supply and demand and resulting price volatility on the wholesale market require our continued focus on bringing our customers the best possible prices. Our team’s expertise in the wholesale market helps us maintain a balanced portfolio of price commitments to prepare us for whatever direction the market may take,” Downes said.

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