New Jersey utility regulator approves gas rate hikes

The increase in gas rates comes after some New Jersey ratepayers faced spiking electricity bills amid severe heat this summer. (Getty Images)

Some New Jersey residents will see their gas heating bills increase by nearly 16% under new rates approved by the Board of Public Utilities.

The board on Thursday approved rate increases for customers of Public Service Electric and Gas and Elizabethtown Gas Company, with those who get natural gas from PSE&G facing steeper increases.

“We oversee how these rates have been going up, and we understand how they impact ratepayers significantly, and to the extent possible, we would encourage everyone for so many reasons — economic, environmental — to really cut back on their energy use wherever and whenever possible,” said Commissioner Zenon Christodoulou. “It’s doable.”

The increase in gas rates comes after some New Jersey ratepayers faced spiking electricity bills amid severe heat this summer.

The average PSE&G customers using 100 therms in a winter month can expect to see their bill rise by $23.94. That would take such their monthly winter bill from $151.62 to $175.56, an increase of roughly 15.8%.

A ratepayer using 1,000 therms a year would see their annual bill increase by $241.40, according to BPU filings.

Elizabethtown Gas Company customers using the same amount of power face a monthly increase of $9.43, which would increase average winter month bills by about 6.5%, from $145.83 to $155.26. A customer’s 12-month 1,000-therm bill would rise by $96.30.

Board officials lamented the increases but said they are necessary to fund infrastructure upgrades to prevent gas leaks and other problems.

“Infrastructure requires upgrades and in order to do that, we have to review and look at these rates, and it’s important that, especially for the gas system, that those upgrades are being made for safety reasons,” said the board’s president, Christine Guhl-Sadovy.

The board urged residents facing financial hardship to take advantage of the state’s utility assistance programs.

New Jersey operates a range of utility assistance programs, whether through the Board of Public Utilities or the Department of Community Affairs.

The Smart Utility Assistance program offers residents making no more than New Jersey’s median income annual per-utility grants worth up to $500 to cover energy usage, and energy assistance grants offer $700 grants to residents whose incomes do not exceed 400% of the federal poverty level.

The Lifeline Utility Assistance program extends a $225 annual benefit to eligible seniors.

Ratepayers who cannot meet their winter heating bills cannot have their power shut off in New Jersey between Nov. 15 and March 15 so long as they are enrolled in certain assistance programs or face financial hardship because of circumstances beyond their control, though they are still responsible for covering arrearages outside the moratorium.

“I just want to say we know having your bill go up is difficult, and that we want to make sure that programs are available for people to help pay their bills,” Guhl-Sadovy said.

Environmental activists said the increase underscores the need for more renewable energy.

“Not only will clean power drive down costs by increasing energy supply, but it also helps improve public health, creates good local jobs, reduces air pollution, addresses climate change, and makes our country energy independent,” said Ed Potosnak, executive director of the New Jersey League of Conservation Voters. “Investing in renewables isn’t just about reducing emissions; it’s about ensuring affordable, stable energy for our communities.”