Your New Jersey natural gas bill may be higher due to a combination of factors, including recently approved rate increases by your utility company, increased consumption, and the overall cost of natural gas.
Understanding the Rate Increase
One primary reason for a higher New Jersey natural gas bill, particularly if you are a customer of New Jersey Natural Gas, is a recent approval allowing the utility to increase its base rates. This adjustment permits the utility to raise its revenues by $157 million. It's important to note that New Jersey Natural Gas previously received a base rate increase of 11.3% in 2021, which was a settlement reached with regulators after their initial request for a more substantial 24% rate hike. These approved rate adjustments directly impact the charges you see on your monthly statement, contributing to a higher overall bill.
Other Contributing Factors to a High Natural Gas Bill
Beyond utility-specific rate changes, several common factors can drive up your natural gas costs:
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Increased Usage:
- Colder Weather: Longer or unusually cold periods require more natural gas for heating, leading to higher consumption.
- More Time at Home: Spending more time at home means more heating, hot water use, and cooking, all of which consume natural gas.
- Increased Thermostat Settings: Setting your thermostat to a higher temperature significantly increases natural gas usage.
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Natural Gas Commodity Prices: The wholesale price of natural gas, influenced by supply and demand, global events, and storage levels, can fluctuate. These market changes affect the "supply" portion of your bill.
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Home Energy Efficiency:
- Poor Insulation: Inadequate insulation in walls, attics, and basements allows heat to escape, forcing your heating system to work harder.
- Drafty Windows and Doors: Gaps and cracks around windows and doors can lead to significant heat loss.
- Inefficient Appliances: Older furnaces, water heaters, and other gas appliances may not operate as efficiently as newer models, consuming more gas to produce the same output.
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Delivery Charges and Fees: Your bill includes not only the cost of the gas itself but also charges for its delivery, maintenance of the natural gas pipeline system, and various state and local taxes and surcharges.
Strategies to Manage Your Natural Gas Bill
To help mitigate high natural gas costs, consider implementing these energy-saving tips:
| Category | Tips to Save |
|---|---|
| Thermostat Settings | Lower your thermostat by a few degrees, especially when you are away from home or asleep. Consider installing a smart thermostat (e.g., Nest, Ecobee) to program heating schedules efficiently. |
| Home Sealing | Seal air leaks around windows and doors with weatherstripping or caulk. Use draft stoppers under exterior doors. * Check and seal any openings around pipes, wires, or vents that lead outdoors. |
| Insulation | Ensure your attic, walls, and floors are adequately insulated. Improved insulation can dramatically reduce heat loss. Consider professional home energy audits (e.g., through New Jersey Clean Energy Program) to identify areas for improvement. |
| Appliance Maintenance | Schedule annual professional maintenance for your furnace and water heater to ensure they run at peak efficiency. Clean or replace furnace filters regularly (monthly during heating season). * Reduce hot water usage by taking shorter showers and using cold water for laundry when possible. |
| Behavioral Changes | Open curtains and blinds on sunny days to allow natural heat into your home, closing them at night to retain heat. Dress in warmer layers indoors to comfortably keep thermostat settings lower. |
For more detailed information on energy efficiency and potential assistance programs, you can often find resources on the official website of the New Jersey Board of Public Utilities (BPU) or the U.S. Department of Energy.
