In May 2008, Public Service Electric and Gas Company (PSE&G) had filed with the New Jersey Board of Public Utilities (BPU) for an increase of 20% based on gas supply costs at that time. The increase is necessary because wholesale supply prices have risen substantially since the fall of 2007, the company said.
David Daly, vice president of energy acquisition and technology for PSE&G, said: Although wholesale gas prices forecasted for this winter have come down in the past few weeks, we are still looking at significantly higher prices when compared with last winter. If approved, this supply increase will be the first for PSE&G residential customers since 2005. The company had reduced its gas supply rate in the fall of 2006 and did not raise the gas supply rate in the fall of 2007. We work hard to keep our prices as stable as possible for customers. But the increase we need this fall is unavoidable.
