Thanks to proposed lower rate tariffs on natural gas by the New Jersey Board of Public Utilities (BPU), citizens of NJ will likely shell out less to heat their homes this winter.  Reports estimate that the savings on natural gas bills for NJ residents could reach up to 9 percent, although an accurate estimate on savings is still rather uncertain. But folks in New Jersey won’t have to wait until winter to start enjoying the pricing relief, as natural gas prices also affect New Jersey electric prices.

Because of the expected dip in natural gas prices, electric bills should reflect delightfully lower prices also – a welcome notion as the peak summer months approach. While the energy market shifts to the favor of residents, to the tune of a 3-4 percent reduction of prices on electric bills, it won’t serve much more than to balance out equally rising delivery and generation charges by power suppliers accounting for heat waves and high demand in July and August.  Once Fall rolls around, the benefits of the lower energy prices will represent their value for residents more evidently.

While domestic production and supply of natural gas has strengthened and market prices have thus trended downward, this proposal was prompted largely by the discovery of new fuel deposits in parts of Pennsylvania and New York. Competition among energy suppliers, allowing customer electric choice in deregulated markets also helps to maintain and stabilize the lower rates.

Greg Reinert, a spokesman for the NJ BPU commented, “As wholesale natural gas prices continue to trend lower we are seeing savings and lower costs for residents and businesses that use natural gas all across the state ….While today?s filings are good news for most ratepayers, the board will continue to make every effort to drive ratepayers? utility costs down and improve the state’s economic competitiveness.”