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PSE&G ASKS FOR INCREASE IN LEVELIZED GAS ADJUSTMENT CHARGE

 NEWARK, Nov. 3 /PRNewswire/ -- Public Service Electric and Gas Company (PSE&G) today asked the N.J. Board of Regulatory Commissioners (BRC) for a $76.2 million increase in the Levelized Gas Adjustment Charge (LGAC), effective Jan. 1 through Sept. 30, 1994. The request reflects significantly higher prices PSE&G is paying pipeline suppliers for natural gas and would result in an approximate 8 percent increase in the monthly bill of a residential gas heating customer using 200 therms of gas a month.
 PSE&G also filed with the BRC a request to recover approximately $1.3 million in costs associated with the environmental remediation of former gas manufacturing sites. The BRC in September ruled that these costs should be shared by gas and electric customers and amortized over a rolling, seven-year period. The recovery would be over the same Jan. 1 to Sept. 30 period and is included in the overall $76.2 million LGAC increase.
 PSE&G doesn't earn a profit on the LGAC. The charge reflects changes in the cost of obtaining and transporting natural gas to customers. PSE&G, over the past three winter heating seasons, has been able to reduce customer bills by more than $250 million through rebates and lower LGAC charges. John Gartman, PSE&G vice president - gas supply, said that "over the past year, however, the wellhead cost of natural gas has increased considerably and current costs are well in excess of those being charged to customers through the LGAC. As a result, PSE&G is unable to continue the LGAC reductions and rebates that have occurred over recent years."
 The recovery of gas plant site remediation costs is in accord with the BRC's September ruling which directed that 60 percent of the clean-up costs should be recovered from gas customers and 40 percent from electric customers. PSE&G is working under the supervision of the N.J. Department of Environmental Protection and Energy on a program to investigate and, where necessary, remediate locations where gas was manufactured.
 If approved in full, the LGAC increase would have the following impact on customer bills:
 THERMS PRESENT PROPOSED AMOUNT PERCENT
 20 $16.97 $17.63 $0.96 5.76
 50 33.60 35.98 2.38 7.08
 100 61.79 66.56 4.77 7.72
 200 118.19 127.72 9.53 8.06
 -0- 11/3/93
 /CONTACT: Neil Brown, corporate communications of PSE&G, 201-430-6017/
 (PEG)


CO: Public Service Electric and Gas Company ST: New Jersey IN: UTI SU:

WB-TW -- NY085 -- 0258 11/03/93 15:37 EST
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Publication:PR Newswire
Date:Nov 3, 1993
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