Low Prices Keep Natural Gas in NJ's Energy Picture

Here’s a reason why New Jersey’s energy policy may be shaped by natural gas, at least in the immediate future.

The nearly half-million customers of New Jersey Natural Gas will receive another credit next month on their utility bills. When combined with credits from the previous two months, the typical residential ratepayer will see their cumulative bills trimmed by a total of $206, from $558 to $353, a savings of 37 percent.

With supplies plentiful and the weather warmer than normal this winter, gas utilities have been handing out credits or rebates this winter like candy at Halloween, or so it seems.

Earlier this month, Public Service Electric & Gas said it would provide its own credit to customers’ bills in February, which will save customers about $30. It is the eighth credit its 1.8 million customers have received in the past 12 months, a trend that has saved the typical residential customer $614, or cut their bills by 35 percent.

The Christie administration views natural gas as playing a central role in the state’s energy future, a policy that New Jersey Resources, the owner of NJNG, hardily embraces. Other utilities do likewise.

The state’s recently adopted energy master plan backs developing new natural gas fired plants to drive down electricity prices, converting fleets of vehicles to natural gas, and upgrading and expanding the natural gas pipeline infrastructure in New Jersey.

In a state saddled with some of the highest electric bills in the nation, it is an argument likely to resonate with many consumers, especially those struggling to make ends meet.

“Natural gas is positioned to meet the country’s growing energy needs,’’ said Laurence Downes, chairman and chief executive office of New Jersey Natural Resources, citing the emergence shale gas, which has driven down prices from as high as $14 a dekatherm a few years ago to $2.60 yesterday.

“Shale gas over the last few years has really changed the game,’’ said Downes yesterday, in response to a question from a shareholder at the company’s annual meeting at the PNC Bank Arts Center in Holmdel. “As we look to the future, natural gas looks very bright.’’

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