Understanding Energy Costs
Natural Gas: Still the Lowest Cost Energy Source
We Can Help You Manage Your Energy Bills
Rising energy costs combined with other factors are impacting energy costs and household budgets. You can take steps to help reduce your energy usage and costs. Learn how below.
If you have any questions, we can be reached at 800-221-0051.
NJNG is dedicated to providing our customers with safe, reliable service in the most cost-effective manner possible. We monitor market supply and demand conditions to deliver cost-effective solutions for your benefit.
This month, you’ll see savings on your bill (thanks largely to lower wholesale natural gas prices). The typical residential heating customer using 134 therms in the month of March will receive a credit of approximately $67.88 in this month’s bill. Plus, we implemented a BGS (or Basic Gas Supply Service) rate decrease that translates to $61.60 in savings, or 3.9%, on the average customer’s yearly bill. Taken together, these two savings add up to about 8.1% in savings on your annual natural gas bill.
The BGS portion of your bill covers the natural gas you use. NJNG does not mark up the cost of natural gas. The cost we pay for the natural gas is the same price you pay. As a result, NJNG is passing the savings from lower natural gas prices back to you.
On the Equal Payment Plan?
As an Equal Payment Plan customer, you pay the same amount every month during the year. We conduct a mid-year review of your account annually to ensure your plan amount is keeping pace with your estimated usage. This review will occur with the start of the March 2023 billing cycle, and the March BGS rate reduction and bill credit will be included. Your plan amount is reviewed again in August 2023.
The bill credit amount appears in the Bill Calculation Box on your bill and reduces your overall account balance. The decreased BGS rate will be applied to your usage beginning March 1, 2023, and the resulting charges will be reflected in your overall account balance. When we review your account in March, we will determine if a mid- year adjustment is necessary to your budget amount. When we review your account in August 2023, we will determine if your account has a remaining balance due or a credit owed to you by comparing your total payments for the plan year with your actual usage — which has been adjusted by the bill credit. If you have a remaining balance owed to NJNG, it will be reflected in your monthly payment for the next Equal Payment Plan year (September 2023-August 2024). If you have a credit balance, it will be reflected in your August bill.
As always, we remain committed to meeting your expectations for reliability and value every day.
If you receive your natural gas from a third-party supplier, confirm the rate at which you are being billed. You can find the NJNG rate of comparison here. The other component of your bill is the Delivery Charge, or the rate approved by the BPU for NJNG to operate our system safely and reliably.
Natural gas is approximately 50% to 70% less expensive than other energy sources. And the typical NJNG customer bill is nearly 20% lower today than it was in 2008.
*Source: Cost per 100,000 Btus. Oil and propane comparison prices: https://www.eia.gov/dnav/pet/pet_pri_wfr_dcus_SNJ_w.htm. March 28, 2022
Electric comparison price: https://firstenergycorp.com/content/dam/customer/Customer%20Choice/Files/New%20Jersey/PriceToCompare.pdf March 1, 2022
The price per a British Thermal Unit (Btu), the measure of your natural gas usage, and Delivery Charge can be found in the Bill Calculation box on your NJNG bill. You also can check out our video on How to Read Your Bill.
Higher natural gas bills are determined by market conditions and other factors, such as these below:
Seasonal changes — Natural gas usage typically increases during the colder months when you use it more frequently to warm your home and keep your businesses running and heat your water, impacting your bill amount.
Living habit changes — Whether you have a child home from college or are hosting guests, keeping them comfortable during their stay may mean turning up the heat, cooking more meals, doing more laundry and increased use of the shower.
Outdated appliances — Older, less efficient heating and other natural gas equipment work harder and use more energy to produce the same amount of heat, resulting in higher energy bills.
Loss of heat — Insufficient insulation and seal up can mean energy is escaping through your attic, vents and older appliances, causing your natural gas equipment to work harder.
Below you’ll find resources to help you save energy and money, and help lower your energy bills.
Equal Payment Plan: Equal Pay helps you anticipate the amount of your monthly NJNG bill when budgeting household expenses by spreading out your natural gas costs over 12 months. Sign into My Account to register. Terms and conditions apply.
Energy Assistance Grants: Increased income guidelines have made assistance available for more customers than ever, including families of four making up to $133,237. If you are falling behind on your energy bills, you may qualify for energy assistance. Click here to learn more and apply. Terms and conditions apply.
Payment Arrangement: If you have an outstanding balance, you may qualify for a non-interest payment arrangement to help bring your account current. Sign into My Account or call 800-221-0051 (and say "payment arrangement" at the prompt) to get started. Terms and conditions apply.
Energy-efficiency Incentives: Poor insulation or inefficient equipment performance can contribute to higher energy bills. NJNG’s The SAVEGREEN Project® can perform a free Quick Home Energy Check Up (QHEC) to identify where heat is escaping and energy-saving opportunities in your home. Plus, rebates and incentives, including a 0% APR On-Bill Repayment Program, are available to help make home energy improvements affordable. Visit SAVEGREEN to schedule your QHEC and learn more. Terms and conditions apply.