In New Jersey, you'll pay less to heat your house this coming winter. Here's why.

David P. Willis, Asbury Park Press
Updated ·2 min read

Even with summer around the corner, it's time to talk about the upcoming winter's heating bills and there's good news.

As of Oct. 1, New Jersey Natural Gas and Public Service Electric & Gas said customers can expect to pay less this winter to heat their homes.

New Jersey Natural Gas said monthly heating bills will go down 1.7%, or $2.62, to $148.56 for average customers who use 100 therms a month. PSE&G monthly gas bills will drop about 4%, or $4, to about $110 a month for the same usage. The changes will require approval from the state Board of Public Utilities.

The snow covered Chadwick Beach section of Toms River is shown in this drone view looking north Monday afternoon, January 31, 2021.
The snow covered Chadwick Beach section of Toms River is shown in this drone view looking north Monday afternoon, January 31, 2021.

The companies give credit for the savings to lower costs for wholesale natural gas, an expense that is passed directly to customers.

"New Jersey Natural Gas is dedicated to providing safe, reliable natural gas service at a reasonable price,” said Patrick Migliaccio, senior vice president and chief operating of New Jersey Natural Gas, in a statement. “Our team works hard to manage supply costs, and we are pleased to pass these savings on to our customers.”

But the utilities said the impact of those lower costs is partially offset by last winter's warm weather, which resulted in less usage, and cut into the savings customers will see when they turn on the heat.

Rate rules help to protect customers' bills and a utility's profit margins from changing weather and usage patterns whether the winter is unusually cold or unusually warm.

For instance, New Jersey Natural Gas said weather in its Monmouth, Ocean and Morris County service territory was 14.2% warmer-than-normal this past heating season.

News of lower gas bills comes after cuts in early 2023, following the start of last winter's heating season in October 2022, a time when prices soared. PSE&G cut supply rates in February and March and New Jersey Natural Gas lowered its wholesale rate and gave customers a bill credit.

"This decrease in commodity prices is an opportunity to lower our gas supply rate for the third time this year, providing our customers with relief from current economic pressures, ” said Dave Johnson, PSE&G's vice president of customer care and chief customer officer, in a statement.

David P. Willis: dwillis@gannettnj.com

This article originally appeared on Asbury Park Press: New Jersey Natural Gas, Public Service will lower heating bills