The price of gas continues to soar at the pump but residents in South Jersey may soon get a break in their homes.
South Jersey Gas could save customers a total of about 20 percent on their bills, the company announced Monday.
The plan should go through because the BPU is happy to reduce the rate for customers, said Joanne Brigandi, director of Corporate Communications with SJG.
“The rate cut is only for a year starting in October 2009. Then we would have to file again depending on gas prices.” Brigandi said.
The proposal was made possible because the company recently received regulatory approval to release some of its pipeline capacity -- the cost of which was previously passed on to customers. And, the company’s cost for natural gas is lower than it was a year ago, South Jersey officials said.
“We chose to split the reduction and provide a bill credit during October rather than spreading the reduction over a 12-month period,” said Edward Graham, President and Chief Executive Officer of SJG.
Customers may have a very minimal or no payment in October, which would allow them to use their money for other expenses, Graham said.
The proposed rate reduction could save customers more than $24 per month.