PSE&G cuts gas bills

Public Service Electric and Gas Co. is giving its residential gas customers a big bill credit for the next three months, worth about $118 a household, thanks to opportune purchases of shale gas.

New Jersey's largest utility announced Thursday it will credit residential customers 28 cents per unit for usage in November, December and January. The reduction will cut the average bill for the typical residential gas heating customer by about 31 percent.

The bill credits are in addition to a nine-cent per unit reduction the utility already put into effect on October 1, which reduced its gas supply rate to its lowest level in 14 years.

"We're able to provide additional savings this winter given the continued availability of low-cost gas from the nearby Marcellus Shale Formation in Pennsylvania," said Jorge Cardenas, PSE&G vice president of asset management and centralized services. "In addition, our transportation and storage capabilities and the way we manage our pipeline contracts have enabled us to seize this opportunity to once again reduce costs for our customers."

Utilities must pass on the cost of gas to customers - they're not permitted to profit from shifts in commodity prices.