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File photo of PSE&G building in Newark

(Patti Sapone/Star-Ledger)

The state’s largest electric and gas utility announced today that its residential natural gas bills would drop to its lowest rate in 14 years.

In its annual filing with the New Jersey Board of Public Utilities, PSE&G proposed to slash its basic gas supply rate by nearly 9 percent this winter, from 54 cents to 45 cents.

Average residential customers, who use 1,050 therms a year to heat their homes with natural gas, will save $96.78, or 8.9 percent, annually. Their monthly winter bill would be reduced to $150.17 from $164.92 for a savings of $14.75.

The rate cut, which needs to be approved by the BPU, would take effect Oct. 1.

“We are pleased to once again propose to lower gas bills for our customers during the next winter heating season,” said Jorge Cardenas, PSE&G vice president of assest management and centralized services. “Since January 2009, our residential gas customers have benefited from multiple rate decreases.”

PSE&G has also provided customers with several months of bill credits this winter that saved the typical customer about $173 since last November, Cardenas said.

He said the utility has worked hard to manage the portfolio of gas pipeline and storage agreements to be able to lower gas costs for its residential customers and help keep winter heating bills affordable.

The drop in rates is attributed in part to the low-cost shale gas supply from the Marcellus Shale Formation, from which the utility purchases its gas.

The utility serves nearly three-quarters of the state’s population.

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