New Jersey regulators let PSE&G start its winter gas season on provisional rates, which means what customers pay is subject to refund with interest if a final review finds the utility collected too much. The Board of Public Utilities approved the 2026-27 residential gas supply charge on that basis, effective October 1. The bill effect is a dip of 20 to 34 cents a month, and the condition attached to it is what leaves the rate unfinished.
What “provisional, subject to refund with interest” means
The Board’s order in Docket GR26060274 approves PSE&G’s residential commodity charge, called BGSS-RSG, at $0.363424 per therm “on a provisional basis, subject to refund with interest on any net over-recovered balance.” BGSS stands for Basic Gas Supply Service, the default gas supply for residential customers, who can instead buy from a third-party supplier.
An over-recovered balance is money PSE&G collects above what its gas supply costs turn out to be. If that balance exists when the books are reviewed, the extra goes back to customers with interest. The balancing charge, set at $0.095430 per therm and down from $0.097699, carries similar language covering net over- and under-recovered balances.
The rates are not final. PSE&G, Board Staff and the New Jersey Division of Rate Counsel signed a stipulation on September 10, and the parties asked that the case go to the Office of Administrative Law for full review of all issues, including the provisional rates, if applicable and necessary. Final approval rests with the Board, so the provisional label stays on the rates until that review ends.
For a household asking what PSE&G gas heat will cost this winter, the order puts numbers on it. A customer using 100 therms a month in winter, 608 therms a year, sees a decrease of $0.20, or 0.2%. A customer using 172 therms a month, 1,040 a year, sees a decrease of $0.34, also 0.2%, measured against the rates in effect August 1, 2026.
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A 20-cent change, and the increases still allowed
The change is tiny because very little moved. PSE&G asked on May 29 to hold the commodity charge at $0.363440 per therm, and the figure in the order is $0.363424 after a compliance filing effective September 1. Only the balancing charge fell, by about a quarter of a cent per therm.
PSE&G’s public notice of the filing puts the 172-therm winter bill at $205.53 now and $205.19 under the new rates. The company says the request will not result in any profit to it, and the Division of Rate Counsel represents all PSE&G customers in the proceeding. Virtual public hearings were held September 3, and comments on the docket go to the Board’s secretary.
The larger number in that notice is not a dip. Under a 2003 Board order, PSE&G may raise its commodity charge on December 1, 2026, on February 1, 2027, or on both dates without a new Board decision. Each increase is capped at 5%, and the company must notify Board Staff and Rate Counsel by November 1 and January 1.
At 172 therms, the notice says, each 5% increase would add about $10.52 a month, or $21.04 if both take effect. The notice lists those as possible increases and does not say they will happen. They would still erase a 34-cent decrease many times over, and a 20-cent decrease more than fifty times over.
Help with a winter gas bill that is still in play
New Jersey’s utility assistance programs are the part of this a household controls. The Universal Service Fund gives income-eligible gas and electric customers monthly credits of $20 to $200 combined, with a limit of $51,273 for a one-person household. Applications go through the state’s DCAid site or the Utility Assistance hotline at (800) 510-3102.
The Low Income Home Energy Assistance Program takes applications October 1 through June 30 while funds last, and shares its application with the Universal Service Fund. It covers heating costs, emergency funds and qualifying heater repairs or replacements. At least one household member needs a Social Security number.
Lifeline pays seniors and people with disabilities an annual $225 energy benefit for electric or natural gas costs. The income limits are $54,943 for a single person and $62,390 for a married couple, and applications run through NJSAVE or 1-800-792-9745.
The Winter Termination Program bars shutoffs of gas and electric service from November 15 through March 15 for recipients of Lifeline, the Universal Service Fund and several other programs. Residential customers who cannot pay because of circumstances beyond their control may self-certify. Customers request protection by calling their utility, or the Board at (800) 624-0241 if the utility cannot answer.
Set beside those, a 20-cent dip is background noise for a household weighing a monthly heating budget. The Universal Service Fund’s smallest monthly credit is $20, and a single 5% PSE&G increase would be about $10.52. The question for a PSE&G heating customer is whether December 1 brings that increase and whether the provisional rates ever produce a refund.
Bracing for a possible December 1 gas increase at PSE&G?
The 20-cent dip disappears the first time PSE&G uses a 5% increase, about $10.52 a month at 172 therms, and a household that has not applied for winter help before the season is under way pays that in full. Applications that run to a deadline or until funds are gone reward the households that are ready early.
The rate is the Board’s to review; the part a household controls is the help for heating bills. The Senior Property Tax & Home-Cost Relief Kit pulls together heating, cooling and home-repair help, with an application log and renewal calendar for tracking each application. Part 5, Utilities and Home Costs, covers help with heat and power bills.
Track winter heating-bill help applications with the relief kit’s renewal calendar →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
