Lower wholesale natural gas prices are giving customers a break — and in some cases a credit — after soaring heating bills so far this winter.

Wall-based New Jersey Natural Gas said it will lower customers' wholesale natural gas rate and issue the one-time bill credit, effective March 1. With both in place, the typical New Jersey Natural Gas customer using 1,000 therms per year will see a savings of $129.48, or 8.1%, on their annual bill.

Public Service Electric & Gas said it would also lower its gas bills as of March 1. It will cut its gas supply rate by 3 cents per therm, resulting in 2.6% reduction in the annual bill. It will drop the monthly bill of a customer using 100 therms a month by $3. When added to another decrease put into place on Feb. 1, PSE&G said it will have reduced monthly winter gas bills by $18 or 14%.

“This second gas rate decrease is more good news for customers, following the decrease PSE&G implemented effective Feb. 1, 2023, ” said Dave Johnson, vice president customer care and chief customer officer in a statement. “We’re pleased to be able to lower our gas rate again, and we will continue to help our customers manage energy use and costs.”

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New Jersey Natural Gas customers will see the credit in their March bill, a spokesperson said. Totaling $34.6 million, it amounts to a $67.88 savings for the typical residential heating customer using using 134.3 therms in March, the company said in a statement.

It helps provide some relief for customers who were hit with a 15.8% bill increase last fall, a rise fueled by sky-high wholesale costs. With costs at a 10-year high, a typical customer saw his or her monthly bill go up by $21.56 a month or $258.72 a year.

New Jersey Natural Gas said recent lower wholesale natural gas prices, anticipated rate refunds from interstate pipelines and the utility's supply management strategies allowed the utility to lower its wholesale gas rate and provide the bill credit.

The utility's wholesale gas costs are passed directly to consumers. It makes no profit on the gas itself.

“Following a period of volatility and higher natural gas costs, we are pleased to see prices come down and to pass these savings on to our customers," said Steve Westhoven, president and chief executive officer of New Jersey Natural Gas, in a statement. "We will continue to monitor market conditions and use our expertise to manage costs and provide savings to our customers whenever possible.”

David P. Willis: dwillis@gannettnj.com

This article originally appeared on Asbury Park Press: New Jersey Natural Gas, PSE&G customers getting rate breaks