Why Your NJ Gas Bill Jumped $24 This Month: What Happened & What You Can Do
NJ Natural Gas bills rose 16% in November 2025 ($240/year increase). Learn why rates increased and discover 10 proven strategies to reduce your heating costs this winter.
If you opened your November heating bill and saw a jump of $20-30 compared to last year, you're not imagining things—and you're not alone. Over 500,000 New Jersey families are experiencing the same shock this month following a 16% natural gas rate increase approved by the NJ Board of Public Utilities.
For the typical household using 100 therms per winter month, bills jumped from $151.62 to $175.56—an increase of $23.94 per month or $240 per year. And with a colder-than-average La Niña winter forecast, your heating costs could climb even higher.
This guide explains exactly what happened, why your bill increased, and—most importantly—10 specific strategies you can implement today to reduce your heating costs, from free DIY fixes to professional upgrades that pay for themselves.
Furnace Not Running Efficiently?
An inefficient furnace makes high gas bills even worse. If your furnace is older than 10 years, running constantly, or making strange noises, it could be wasting hundreds of dollars in gas.
The Facts: NJ Natural Gas Approved 16% Rate Increase
In November 2024, the New Jersey Board of Public Utilities (BPU) approved a $157 million rate increase for NJ Natural Gas, effective with November 2025 billing cycles. This translates to a 15.7-16% increase for residential customers.
By the Numbers:
- Monthly increase: $23.94 (for typical 100-therm usage)
- Bills changed from: $151.62 → $175.56 per month
- Annual impact: $240-241 per household per year
- Customers affected: Over 500,000 NJ Natural Gas customers
Who Is Affected by This Rate Increase?
The NJ Natural Gas rate increase affects customers in:
- Monmouth County
- Ocean County
- Morris County
- Middlesex County
- Burlington County
Note: Elizabethtown Gas Company also received approval for a smaller rate increase (approximately 6.5%), affecting customers in Union County and other service areas. However, the NJNG increase is significantly larger.
Why Did NJ Natural Gas Raise Rates?
The BPU approval allows NJ Natural Gas to recover costs associated with:
- Infrastructure investments – Pipeline upgrades, system modernization, and aging infrastructure replacement
- System enhancements – Safety improvements and leak detection technology
- Regulatory compliance – Meeting state and federal safety standards
- Operational costs – Overall business operations and customer service improvements
While frustrating for customers, utilities must justify rate increases to the BPU, demonstrating that investments benefit system reliability and safety. This isn't a profit grab—it's cost recovery for required improvements.
The Perfect Storm: Rate Increases + La Niña Winter
The 16% rate increase would be challenging enough on its own. But 2025-2026 brings a double whammy for New Jersey homeowners: higher rates and a colder winter.
La Niña Winter Forecast:
The National Weather Service and NOAA report that La Niña conditions are forming in the Pacific, bringing colder and wetter winter weather to the Northeast.
Translation: You'll likely use more heating at higher rates = significantly higher bills than previous winters.
According to the U.S. Energy Information Administration, heating costs in New Jersey for the 2024-2025 winter season are projected at:
- Natural gas: About 1% more expensive than last winter, averaging $770 for the season
- Electricity: About 5% more expensive than last winter, averaging $1,390 for the season
- Propane: About 1% more expensive than last winter, averaging $1,670 for the season
November 2025: The First Bills Arriving Now
If you're reading this in mid-November 2025, you're experiencing the first wave of shocking heating bills. Here's why November bills are particularly jarring:
- First heating usage of the season – Furnaces turned on for the first time in October/November
- Rate increase effective immediately – November bills reflect the full 16% increase
- Cold snap timing – Temperatures dropping into the 30s-40s = daily furnace use
- Psychological shock – Comparing to last November's bills shows the dramatic increase
What to expect: December and January bills will be even higher as temperatures drop and furnace usage peaks. Now is the time to take action.
Combat Higher Bills with a Furnace Tune-Up
A professional furnace tune-up can improve efficiency by 15-20%, potentially saving $115-150/year. It also prevents costly emergency breakdowns during winter.
10 Ways to Combat Higher Heating Costs in New Jersey
You can't control utility rates, but you CAN control how much gas you use and how efficiently your heating system operates. Here are 10 strategies ranging from free DIY fixes to professional upgrades that pay for themselves.
FREE / DIY STRATEGIES (No Cost or Minimal Cost)
1. Lower Your Thermostat by 2-3 Degrees
The Science: Every degree you lower your thermostat saves approximately 3% on heating costs.
Recommendation: Set to 68°F during the day when home, 62°F at night when sleeping. Most people don't notice the 2-3 degree difference with proper blankets and layered clothing.
Savings Estimate: $50-75/year with zero comfort loss
2. Change Your Furnace Filter Monthly
Why it matters: Dirty filters force your furnace to work harder, reducing efficiency by 5-15%.
Cost: $10-20/month for quality pleated filters (buy in bulk to save)
Action: Mark your calendar for the first of every month. Check the filter—if it's visibly dirty or dark, replace it immediately.
ROI: Saves $30-75/year + prevents $400-800 in repair costs
3. Use Ceiling Fans in Reverse (Clockwise)
The trick: Most ceiling fans have a reverse switch. In winter, run fans clockwise at low speed to push warm air down from the ceiling.
Best for: Homes with high ceilings (8+ feet) or vaulted ceilings where heat rises significantly.
Savings: 10% on heating costs in rooms with ceiling fans
4. Seal Air Leaks Around Windows and Doors
Materials needed: Weatherstripping tape, door sweeps, caulk (total cost: $20-50 at any hardware store)
Focus areas: Door thresholds, window frames, attic access doors, basement rim joists
DIY-friendly: No special tools needed. Most homeowners complete this in 2-4 hours.
Savings: 10-20% on heating bills = $75-150/year
5. Open Curtains During Day, Close at Night
Free solar gain: South-facing windows can gain significant heat from sunlight during sunny winter days.
Nighttime insulation: Close heavy curtains or blinds at night to create an insulating air pocket against cold windows.
Savings: 5-10% on heating costs (completely free)
LOW-COST PROFESSIONAL SERVICES ($100-500)
6. Schedule a Furnace Tune-Up ★ RECOMMENDED
Service: Professional maintenance by a licensed HVAC technician
Typical market cost: Varies by provider and service scope (contact us for current pricing)
What's Included:
- Clean burners and heat exchanger
- Inspect heat exchanger for cracks (carbon monoxide safety)
- Test combustion efficiency and adjust gas pressure
- Lubricate moving parts and check blower motor
- Replace or clean air filter
- Test thermostat calibration
- Check electrical connections and safety controls
Savings: 15-20% efficiency improvement = $115-150/year
ROI: Pays for itself in 2 years + prevents costly breakdowns
Schedule Your Furnace Tune-Up – Call 908-249-97017. Install a Programmable or Smart Thermostat
Service: Smart thermostat installation by licensed technician
Typical investment: Device cost plus professional installation (pricing varies by model and complexity)
Recommended models: Nest Learning Thermostat, Ecobee SmartThermostat, Honeywell Home T9
Bonus features: Remote control via smartphone, automatic schedule learning, usage tracking, weather-based adjustments
Savings: 10-15% on heating bills = $75-115/year
ROI: 2-3 years
Tip: Ask about smart thermostat installation during your furnace tune-up to save on service call fees.
8. Improve Attic Insulation
Service: Professional insulation assessment and installation
Typical market cost: Varies based on attic size, current insulation levels, and material choice
Why it matters: Poorly insulated attics are the #1 source of heat loss in homes. Warm air rises and escapes through inadequate insulation.
Savings: 20-30% on heating costs = $150-230/year
ROI: 3-7 years + increases home value
MAJOR INVESTMENTS WITH LONG-TERM ROI ($3,000+)
9. Upgrade to a High-Efficiency Furnace
When to consider: If your furnace is 15+ years old, constantly needing repairs, or has an AFUE rating below 80%
Investment range: Varies based on furnace size, efficiency rating, and installation complexity (contact us for a free quote)
Efficiency gain: Old furnace (60-70% AFUE) → New high-efficiency (95-98% AFUE) = 30-40% savings on gas usage
Annual savings: $230-300/year for average NJ household
Federal tax credit: Up to $600 for qualifying high-efficiency furnaces (expires Dec 31, 2025)
ROI: 10-15 years (but adds home value + prevents emergency replacement in winter)
Get Free Furnace Replacement Quote – Call 908-249-970110. Switch to a Heat Pump (Eliminate Gas Dependency)
When to consider: If you want to reduce or eliminate natural gas usage entirely (and never worry about rate increases again)
Investment before incentives: Varies based on system size, efficiency rating, and installation scope (contact us for a detailed quote)
Available Incentives (ACT NOW):
- Federal tax credit: Up to $2,000 (30% of cost, expires Dec 31, 2025 – 47 days remaining!)
- NJ Clean Energy rebates: Up to $1,500 additional
- Net cost after incentives: $5,500-11,500
Annual savings: 30-50% on total heating/cooling costs by eliminating or drastically reducing gas usage
Bonus: Heat pumps provide both heating AND cooling—replacing your AC and furnace in one system
NJ Climate Performance: Modern cold-climate heat pumps work efficiently down to -15°F, perfect for New Jersey winters
ROI: 8-15 years + eliminates exposure to future gas rate increases
Financial Assistance & Tax Credits
⏰ Don't Forget: Federal Tax Credits Expire December 31, 2025
You have 47 days remaining (as of mid-November) to claim federal HVAC tax credits before they expire.
- Heat pumps: Up to $2,000 (30% of equipment cost)
- High-efficiency furnaces: Up to $600
- Smart thermostats: Up to $150 (when installed with qualifying system)
⚠️ Critical: Your HVAC system must be installed and operational ("placed in service") by December 31, 2025 to qualify. Ordering now but installing in January 2026 = no credit.
LIHEAP: Heating Assistance for Qualifying NJ Homeowners
The Low Income Home Energy Assistance Program (LIHEAP) is now accepting applications for the 2024-2025 heating season.
Eligibility:
Households at or below 60% of NJ state median income:
- Family of 1: $4,599/month or less
- Family of 2: $6,021/month or less
- Family of 3: $6,906/month or less
- Family of 4: $7,676/month or less
Benefits: $118 minimum to $1,278 maximum per heating season, plus up to $800 in winter crisis assistance
Application period: October 1, 2024 - June 30, 2025 (first-come, first-served—apply early!)
How to apply: Visit www.nj.gov/dca/dcaid or call 1-800-510-3102
Note: LIHEAP may require a furnace safety inspection to ensure your heating system is safe and operational.
Dimatic Control performs LIHEAP-required furnace safety inspections. Call 908-249-9701 to schedule.
Your Next Steps: Take Control of Your Heating Costs Today
Choose your action plan based on your budget and goals:
💰 If You're on a Tight Budget:
- Start with free DIY strategies (#1-5)
- Apply for LIHEAP if eligible (applications open now)
- Schedule furnace tune-up when possible (highest ROI: 2 years)
⚙️ If You Can Invest in Professional Services:
- Schedule furnace tune-up (highest immediate ROI)
- Install smart thermostat
- Seal air leaks + improve insulation
🚀 If You're Planning a Major Upgrade:
- Schedule heat pump consultation before Dec 31 (federal tax credits!)
- Get ROI calculation including tax credits + rate increase savings
- Ask about financing options (0% for qualified buyers)
🔥 If Your Furnace Is Old/Inefficient:
- Get free assessment from Dimatic Control (call 908-249-9701)
- Compare: Repair vs. high-efficiency replacement vs. heat pump
- Act before winter peak (Dec-Feb = most expensive emergency replacements)
Ready to Take Action?
Call Dimatic Control at 908-249-9701 for expert advice on reducing your heating costs. We've been serving Union County homeowners since 2013 with honest pricing and professional service.
Frequently Asked Questions About NJ Gas Rate Increases
Why did my NJ gas bill increase so much?
NJ Natural Gas customers are seeing bills increase by approximately $23.94/month ($240/year) following a 16% rate hike approved by the NJ Board of Public Utilities in November 2024, effective November 2025. The increase affects over 500,000 customers across Monmouth, Ocean, Morris, Middlesex, and Burlington counties. The rate increase funds infrastructure investments and system modernization required by the utility.
How long will these higher NJ gas rates last?
Utility rates remain in effect until the next Board of Public Utilities review cycle, typically annual or bi-annual. The November 2025 rate increase is expected to remain through at least 2026. Homeowners should focus on reducing gas consumption through efficiency improvements rather than waiting for rate decreases, which are unlikely in the near term.
Can I switch to a different gas provider to save money?
No. NJ Natural Gas operates as a regulated monopoly utility in Monmouth, Ocean, Morris, Middlesex, and Burlington counties. You cannot choose a different natural gas provider. Your only options to reduce heating costs are: reduce usage through efficiency improvements, upgrade to a more efficient furnace or boiler, or switch to alternative heating like heat pumps that don't rely on natural gas.
What is the fastest way to reduce my heating costs in NJ?
The fastest ROI typically comes from a professional furnace tune-up, which can save $115-150/year and often pays for itself within 2 years. Immediate free actions include lowering your thermostat 2-3 degrees (saves $50-75/year), changing furnace filters monthly (saves $30-75/year), and sealing air leaks around windows and doors (saves $75-150/year with minimal DIY investment).
Are heat pumps really more efficient than gas furnaces in New Jersey?
Yes. Modern heat pumps operate at 200-400% efficiency compared to gas furnaces at 80-98% efficiency. In NJ's climate, cold-climate heat pumps excel down to -15°F. With federal tax credits (up to $2,000, expiring Dec 31, 2025) and the 16% gas rate increase, heat pumps offer significant long-term savings by eliminating natural gas dependency entirely. Most NJ homeowners see 30-50% reduction in total heating/cooling costs.
Do I qualify for LIHEAP heating assistance in New Jersey?
You may qualify if your household income is at or below 60% of NJ state median income (approximately $7,676/month for a family of 4). LIHEAP provides $118-$1,278 in heating benefits plus up to $800 in winter crisis assistance. Applications are open now through June 30, 2025 on a first-come, first-served basis. Apply at www.nj.gov/dca/dcaid or call 1-800-510-3102.
Will federal HVAC tax credits be extended past December 31, 2025?
Under current law, the federal Energy Efficient Home Improvement Credit (Section 25C) expires December 31, 2025 with no extension announced. Congress could extend it, but waiting is risky. To guarantee up to $2,000 in heat pump tax credits or $600 in furnace credits, your system must be installed and operational by December 31, 2025 (47 days remaining as of mid-November).
How much can a furnace tune-up really save on my gas bill?
A professional furnace tune-up typically improves efficiency by 15-20%, translating to $115-150/year in savings for an average NJ household. Most tune-ups pay for themselves within 2 years. They also prevent costly emergency breakdowns (average repair: $400-800) and extend furnace lifespan. With the 16% rate increase, efficiency improvements now save even more than before.
Don't Let Higher Gas Rates Control Your Budget
The 16% NJ Natural Gas rate increase is real, and it's painful for over 500,000 New Jersey families. But you have more control than you might think.
Start with the free DIY strategies today—lowering your thermostat, changing filters, and sealing air leaks can save $150-300/year with minimal effort. Then invest in professional services with proven ROI: a professional furnace tune-up can save $115-150/year, often paying for itself within 2 years.
For homeowners ready to make a major change, heat pumps offer a path to eliminate natural gas dependency entirely—and with federal tax credits expiring in just 47 days (December 31, 2025), now is the time to act.
Local Help You Can Trust
Dimatic Control has served Union County homeowners since 2013 with honest pricing, expert service, and a commitment to helping families stay comfortable while reducing costs. We're not here to sell you something you don't need—we're here to provide options that make financial sense for your situation.
Call us at 908-249-9701 for a free consultation on reducing your heating costs.
Take Action Today
Don't wait until your December and January bills arrive. The sooner you optimize your heating system, the more you'll save this winter.
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About Dimatic Control LLC
This guide was created by Dimatic Control LLC, a family-owned HVAC company serving Union County, NJ since 2013. Our team of licensed technicians specializes in furnace maintenance, heat pump installations, and energy-efficient heating solutions.
We're committed to helping New Jersey homeowners stay comfortable while reducing heating costs through honest advice, transparent pricing, and expert service.