New Jersey’s largest natural gas utility is proposing a hefty rate cut. Customers could see savings on their bills as early as October.
PSE&G filed a request with the state Board of Public Utilities on Friday to lower residential gas heating bills by 5%, effective October 1, 2026. The reduction would apply to nearly 1.9 million ratepayers across New Jersey.
The company attributed the proposed cut to long-term procurement planning—purchasing natural gas months or even years in advance of peak demand, rather than buying during the winter months when demand—and cost—is the highest. PSE&G also sources approximately 90% of its residential gas supply from the Marcellus Shale region in Pennsylvania, keeping transportation costs low and reducing exposure to supply disruptions.
“Keeping energy affordable for our customers requires planning, discipline, and a long-term approach,” said Brian Clark, Senior Vice President of Gas Operations. “By securing supply in advance, maintaining access to valuable storage resources, and managing costs responsibly, we’re able to help customers avoid many of the market swings that can lead to higher winter heating bills.”
PSE&G says it currently maintains the lowest residential gas bills in the region. The proposed 5% reduction would take effect ahead of the winter heating season, when roughly two-thirds of residential gas usage occurs.
The filing comes as New Jersey continues to grapple with some of the highest energy costs in the country.
From 2024 to 2025, average utility bills in the state jumped $260—a 16.9% increase, the highest of any state in the nation. On her first day in office, Governor Sherrill declared a State of Emergency on Utility Costs, immediately freezing rate hikes that had financially strained residents across the state. The PSE&G proposal is a step in the right direction.
The filing is subject to approval by the Board of Public Utilities. After years of high utility costs, New Jersey residents might finally see some relief.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.