New Jersey Natural Gas Files Base Rate Case with the New Jersey Board of Public Utilities
The petition seeks a base rate increase of
“We continuously invest in our natural gas infrastructure to safely
operate a reliable and environmentally responsible system that keeps
over 544,000 customers’ homes warm and businesses running,” said
The proposed rate adjustment is necessary to cover the costs associated with the responsible operation of NJNG’s business, including its substantial infrastructure investments. Since its base rates were last approved by the BPU in 2016, NJNG has:
Invested more than
$600 millionto upgrade and enhance the safety and reliability of its transmission and distribution systems.
- Installed over 370 miles of new main to support safe and reliable service for its customers.
- Responsibly acted to keep its system safe and environmentally sound by retiring or replacing approximately 200 miles of aged infrastructure.
- Increased workforce and operating expenses to meet the needs of its customer base.
Created the most environmentally responsible natural gas delivery
New Jerseywith the fewest leaks-per-mile of any natural gas utility in the state.
If approved in full, the monthly bill for a typical residential heating
customer using 100 therms a month would go from
Natural gas bills consist of two main parts. The delivery charge, which includes base rates, covers the cost of providing natural gas to customers, including maintaining its operations and delivery systems, as well as the ability to earn a fair return on capital investments, which helps support future upgrades to our systems. The second part is the Basic Gas Supply Service (BGSS), or the portion of the bill that goes toward purchasing the natural gas commodity itself. NJNG does not profit from the sale of the natural gas commodity, or BGSS, which is passed through to customers.
As a part of its filing, NJNG is also seeking permission for a Phase II
proceeding to request rate recovery for the Southern Reliability Link
(SRL) upon completion of the project. Approved by the BPU in 2016, the
SRL is a 30-mile transmission pipeline project that will provide a new
natural gas feed into
Under normal conditions, the BPU’s review of NJNG rate filing could take between nine and 12 months.
In a separate filing with the BPU, NJNG submitted its annual recovery of
costs associated with its New Jersey Reinvestment in System Enhancement
and Safety Acceleration and Facility Enhancement II programs. If
approved, the typical residential heating customer using 100 therms a
month would see an increase of
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this release include, but are not limited to, certain statements regarding the base rate case, future NJR capital expenditures and infrastructure investments and the ability to construct the SRL.
The factors that could cause actual results to differ materially from
NJR’s expectations include, but are not limited to, risks associated
with our investments in clean energy projects, including the
availability of regulatory and tax incentives, the availability of
viable projects, our eligibility for ITCs, the future market for SRECs
and electricity prices, and operational risks related to projects in
service; the ability to obtain governmental and regulatory approvals,
land-use rights, electric grid connection (in the case of clean energy
projects) and/or financing for the construction, development and
operation of our unregulated energy investments, pipeline transportation
systems and NJNG and Midstream infrastructure projects, including NJ
RISE, SRL, PennEast and Adelphia Gateway, in a timely manner; risks
associated with acquisitions and the related integration of acquired
assets with our current operations, including our planned
New Jersey Natural Gas, NJR’s principal subsidiary,operates and maintains over 7,400 miles of natural gas transportation and distribution infrastructure to serve more than half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesexand Burlingtoncounties. NJR Clean Energy Venturesis a leading renewable energy company that invests in, owns and operates residential and commercial solar projects with a total capacity in excess of 250 megawatts, providing residential and commercial customers with low carbon solutions.
- NJR Energy Services manages a diversified portfolio of natural
gas transportation and storage assets and provides customized energy
solutions to its customers across
- NJR Midstream serves customers from local distributors and
producers to electric generators and wholesale marketers through its
50 percent equity ownership in the Steckman Ridge natural gas storage
facility, as well as its 20 percent equity interest in the
PennEast Pipeline Project.
- NJR Home Services provides service contracts, as well as
heating, central air conditioning, water heaters, standby generators,
solar and other indoor and outdoor comfort products to residential
homes and businesses throughout
NJR and its more than 1,000 employees are committed to helping customers
save energy and money by promoting conservation and encouraging
efficiency through Conserve to Preserve® and initiatives such
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