Sharp rise in gas bills proposed by PSE&G

Municipal officials say increase not justified.

By: Gwen Runkle
   The annual natural gas bill of residential customers of Public Service Electric and Gas Co. could rise as much as 11 percent come December if the state Board of Public Utilities grants the company’s request.
   PSE&G filed a petition in May asking the state Board of Public Utilities to approve a statewide gas revenue increase of 7.06 percent to take effect Dec. 1.
   "The 7 percent is an average across a number of different classes of customers, including large industrial, commercial and residential," said Kathleen Ellis, manager of communications for PSE&G. "For the typical residential single-family home, the increase is more like 11 percent.
   "The typical resident, who uses natural gas to heat their home, cook and clean their clothes, uses an average of 200 therms (the unit of measure for natural gas) per month in the winter and 1,260 therms annually," she said.
   The current annual bill of such a person would be $1,078.92 and would be increased to $1,199.34 under the proposed rate increase, Ms. Ellis said.
   She said the company needs the rate increase in order to recover the $1.2 billion it has put into its distribution system over the last 10 years. PSE&G last requested a rate increase in November 1991, she added.
   "We have replaced old main and installed new. We need to increase the rate base in order to insure the safety and reliability of our services," Ms. Ellis said.
   But local municipal officials are not convinced.
   West Windsor Township Council President Alison Miller said the council is drafting a resolution opposing the increase, which is expected to be approved Monday night.
   "Most people get their service from the Public Service Electric & Gas Co. and it’s really a necessity, not a luxury," she said. "This increase would be a hardship to many, so we are against it."
   Other area municipal officials said while they were not aware of PSE&G’s planned increase, it is likely they’ll act against it in the near future.
   "I haven’t seen the rate increase, said Princeton Borough Administrator Bob Bruschi. "But if that’s the case, our governing body will do something and I will recommend they adopt a resolution in opposition."
   "We haven’t been informed about the increase yet," said Montgomery Township Administrator Donato Nieman. "But we do use gas in some of our buildings, as do some of our residents, and we would probably pass a resolution in opposition of the increase."
   Princeton Township Engineer Robert Kiser also said he was unaware, "but we’ll definitely look things over and determine how to proceed." he said.
   Plaisnboro Township Administrator Patrick Guilfoyle said he, too, did not know of the potential increase and declined further comment.
   Public hearings for the proposed rate increase are expected to be held at 1 p.m. Monday, Nov. 5 at the Burlington County Administration Building in Mount Holly and 1 p.m. Wednesday, Nov. 7 at the Trenton Office of Administrative Law in Mercerville.