How PSE&G keeps residential gas bills low

While winter heating bills may feel like a distant memory this time of year, our work to keep residential gas supply costs lower and more stable continues year-round. When winter temperatures drop, reliable heat matters — but so do stable energy costs. 

And while our customers do have the ability to shop for their gas supply from Third Party Suppliers, we work to keep gas bills low and keep supply prices stable for our customers that opt to purchase their gas supply from PSE&G. We’ve also recently proposed lowering residential gas bills by 5% effective October 1, 2026 — ahead of the upcoming heating season.

Strategic investments in gas storage, long-term planning and data-driven purchasing help keep costs stable while delivering safe, reliable service in a volatile market.

What helps keep residential gas supply rates stable?

Many of the decisions that influence what our customers will pay next winter — and even years from now — are being made today.

The region’s lowest residential gas supply rates aren’t just the result of favorable market conditions. They reflect decades of deliberate planning, long-term investment and strategic gas purchasing strategies designed to protect our customers from the kind of price volatility that often defines energy markets.

For residential customers, the impact is clear: lowest cost, more stable bills and protection from market swings. The result? Consistently the lowest residential supply rates across the state and region for our customers. 

Much of this work happens behind the scenes but it delivers where it matters most: the lowest residential rates in the region for the customers who rely on natural gas from PSE&G, especially during the winter months.   

Behind that performance is a workforce of skilled employees who operate and maintain the system safely and efficiently every day— supporting consistently low gas supply rates without compromising reliability or operational excellence for our 1.9 million gas customers.

How planning ahead keeps bills down

Residential natural gas use is highly seasonal. Approximately 66% of annual gas usage occurs between December and March, when heating demand peaks.

That’s why we plan ahead. While many are thinking about beach umbrellas and planning the next BBQ – our teams are planning for the future, analyzing winter heating needs and securing the lowest gas supply costs available for our customers.

Rather than purchasing gas only when demand is highest — when prices are often at their peak — we actively monitor market conditions year-round, securing supply months or even years in advance. This approach allows us to lock in lower gas prices and reduce exposure to sudden market spikes. Bottom line: when our customers need gas the most, the majority of our gas supply has already been secured and at a lower cost than customers would otherwise be paying.

What is gas storage?

The level of planning and preparation to maintain the safe and reliable system our customers depend on doesn’t stop. Through long-term agreements established decades ago, some as long as 50 years ago – we secured access to regional storage capacity that is now extremely limited. What was once a forward-looking investment has become a critical advantage.

Today, we are among a very small number of utilities — and the only one in the region — with this level of long-standing storage access. Because these contracts were secured decades ago and are no longer available in today’s market, they continue to provide a lasting cost advantage for customers.

That matters.

It allows us to purchase gas when prices are lower, store it and use it when demand — and prices — rise. For our customers, that translates directly into greater bill stability and lower overall costs.

How sourcing closer to home reduces costs

Where energy comes from also matters – and distance has a higher price tag.

Approximately 90% of our residential gas supply is sourced from the Marcellus Shale region in Pennsylvania, the largest and one of the most cost-effective natural gas basins in the country.

Its proximity to New Jersey helps reduce transportation distance, lowering delivery costs and limiting exposure to disruptions from more distant supply regions.

Combined with a diverse network of pipeline and supplier relationships in the region, this approach provides flexibility, strengthens reliability and helps manage costs.

How PSE&G’s planning protects customers and reduces volatility

Energy markets are inherently unpredictable — shaped by weather, global demand and supply constraints. Without a long-term strategy, those fluctuations can quickly translate into higher and more volatile customer bills.

Our approach is designed to manage and reduce that risk.

With this purchasing strategy and storage access in place, supply is diversified across regions and delivery paths and long-term infrastructure investments help ensure reliability, even during periods of peak demand

For our customers, that means greater confidence that their energy costs will remain predictable— even if markets are not.

It’s a steady, disciplined approach in a market that rarely is and it’s a key reason our residential customers continue to benefit from stable, competitive gas rates year after year.

Planning ahead and delivering every day

The systems and strategies that support today’s residential gas service were built over decades — but they require regular attention.

Each spring, summer and fall, our teams are already preparing for the next winter: analyzing market trends, anticipating customer demand, securing supply and optimizing the system to protect customers when demand for gas returns. This work spans both the market experts who plan and procure the gas in advance and the teams who maintain and operate the system every day to ensure it runs safely, reliably, and efficiently.

This work reflects a coordinated effort across the organization to combine thoughtful planning with disciplined execution. The result is managing gas supply costs responsibly while upholding the highest standards of safety and reliability.