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| The Facts About Fuel Costs |
Comparing prices for home heating oil and natural gas is a real challenge for most consumers. Oil is sold in gallons, natural gas in therms. There are dozens of independent, competing oil dealers offering many different prices and service options. And while NJNG is your only source of natural gas, there are different types of natural gas customers, each receiving different gas rates. How do you make an effective comparison?
Price and Rate: There is a Difference
Home heating oil is sold at various prices throughout the area, but you always know what you are paying, because it is sold by the gallon and the price is published in newspapers. With natural gas, things aren't so simple. NJNG's gas rates are set by the Public Service Commission, which is why the utility goes to Public Service Commission every year to ask for another rate increase. The exact rate, which is not published, depends on how much you use- for example, you pay a lot more for the first ten therms than you do for the next 100.
The rate is not all you pay, however. Every time NJNG buys gas at a higher price, they are allowed to pass along the increases through the Gas Cost Allowance. This increase is passed on directly to gas consumers.
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