PSE&G Seeks To Lower Residential Gas Bills, Raise Electric Rates

(Comment on this article at http://www.financialwire.net/2009/06/01/pseg-seeks-to-lower-residential-gas-bills-raise-electric-rates/)

June 1, 2009 (FinancialWire) -- Public Service Enterprise Group Inc.'s (NYSE: PEG) PSE&G unit said it has proposed to lower residential gas bills this fall by about seven percent, citing the continuing decrease in the wholesale cost of natural gas. The New Jersey utility also filed with state regulators for a base rate adjustment that would increase electric revenue by 1.9 percent and gas revenue by 2.9 percent.

The lower gas rates would result in savings of around $10 per winter month for a residential gas customer using 100 therms, according to the utility. The company's annual filing with the New Jersey Board of Public Utilities will result in the third bill decrease since January 1, for a total reduction of 18 percent, or $30, since October 2008.

PSE&G said that its costs to deliver natural gas and electricity have increased since base rates were last set in November 2006, despite gas supply prices that have been dropping.

The electric base rate increase, if approved by the BPU, would amount to an additional $230.6 million in annual revenue, according to the company. The company has requested that the new rates take effect in March 2010.

If approved by the BPU, the new base rates would increase the bill of the average residential electric customer, using 7,300 kilowatthours on an annual basis, by 3.6 percent, or $49 per year.

Newark, New Jersey-based PSE&G serves nearly three-quarters of New Jersey's population.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

http://www.financialwire.net

Related terms: electricity, gasoline, natural gas, new jersey, nyse, population, prices, rates, residential, revenue, utilities, web