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NJNG announces yet another bill credit AND a rate decrease

New Jersey Natural Gas announced on Friday that they will be issuing bill credits again during the month of March. This is on top of the credits issued during the months of December 2011 and January and February of 2012. The press release does not state how much the credit will be for and, as of this posting, it is not yet showing on their historical pricing chart. The credits during December, January, and February were for $0.4419, a whopping 70% of BGSS, which is $0.6272 making the effective BGSS an extremely low $0.1853. These credits were issued due to the precipitous drop of natural gas commodity prices. Due to the mild winter in areas serviced by NJNG the total amount which was required to be credited was not used up during the original credit period and it was extended to February and now to March.

This credit is for residential and small commercial (GSS) customers who did not choose a third-party supplier for their natural gas supply and therefore pay the BPU regulated BGSS rate. It does not apply to large commercial (GSL) customers. Due to these credits, which have been issued numerous times over the last few years, Lower Watt recommends that these customers do not switch their natural gas supplier from the default rate. It is our experience that doing so is likely to cost the customer more money than it will save.

Along with the credit, NJNG announced that they will be implementing a rate decrease for these customers effective in April. This decrease will be for $4.35 a month for a customer using 100 therms. This calculates to a decrease of $0.0435 per therm and would make BGSS cost $0.5837 per therm.

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