South Jersey Gas said because of its storage-based hedging strategy it will save its average customer about $62 next year. The company has promised an extra holiday gift this year in the form of a 4.4% rate reduction.

The Folsom, NJ-based gas utility has asked the New Jersey Board of Public Utilities (BPU) for a 0.0617 cent/therm rate reduction. South Jersey said its use of stored supplies of gas purchased at lower prices earlier this year in part made the rate cut possible even while gas prices have increased nearly 50% during the last month.

“The hedging strategy we use has really shielded our customers from price fluctuations in a volatile energy market,” said SJG President Ed Graham.

The rate reduction for the company’s 300,000 customers will become effective immediately following BPU approval, which is anticipated to occur in January. South Jersey noted that it makes no profit on the gas it buys for customers. It merely pass along the price paid.

South Jersey serves residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, Gloucester, Burlington and Camden counties in New Jersey.

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