WALL, N.J.--(BUSINESS WIRE)--Feb. 28, 2019--
As a part of its ongoing commitment to provide safe and reliable service
for its customers, New Jersey Natural Gas (NJNG) submitted a filing to
the New Jersey Board of Public Utilities (BPU) to reinforce its natural
gas delivery and information technology (IT) systems. Through its
Infrastructure Investment Program (IIP), NJNG is seeking to invest $507
million over five years on a series of infrastructure projects that
enhance and support the reliability and resiliency of its systems.
“As a regulated utility and lifeline service provider, we have a
fundamental responsibility to provide our customers with safe and
reliable service,” said Steve Westhoven, president and COO of New Jersey
Resources. “This obligation is what drives our investments and our
commitment to proactively strengthen our systems, improve our operations
and continue to exceed our customers’ expectations.”
The IIP consists of a series of natural gas transmission and
distribution replacement and enhancement projects and a critical,
integrated IT program that will replace NJNG’s existing systems
installed between 1994 and 1997 and will no longer have extended support
after April 2025. The IT upgrade will strengthen the infrastructure the
NJNG team uses to serve its customers and will include new billing,
customer service, asset management, work order and accounting systems.
The initiative will also strengthen NJNG’s cybersecurity program.
The transmission and distribution projects include 19 looping
reinforcements that will add secondary feeds or interconnect to single
feed distribution systems, and replace and upgrade NJNG’s trunk line
system in Lakewood, Denville and Roxbury. Other projects include
replacing over seven miles of main and installing a new regulator
station, connecting NJNG’s liquefied natural gas facility in Howell to
its transmission backbone, reconstructing and relocating a regulator
station in Brick Township, installing 60,000 protective devices on
regulator vents in flood prone areas, and installing approximately
16,000 excess flow valves (EFV). An EFV automatically restricts the flow
of natural gas if a service line is broken. Each of these projects will
strengthen NJNG’s delivery system and enhance safety, reliability and
resiliency.
Pending BPU approval, NJNG will begin necessary engineering and design
work for the construction of these projects, with all work to be
completed over a five-year timeframe. Work will be prioritized based on
need and community impacts.
In the filing, NJNG is seeking to recover the capital investment costs
associated with IIP through six annual adjustments to its base rate with
the first change expected in October 2020. NJNG will submit to the BPU
an annual cost recovery filing for investments placed in service during
the program period. A typical residential heating customer using 1,000
therms per year could see an average annual increase of approximately
$18.35 or 1.8 percent over the recovery period. Additionally, NJNG will
file a base rate case no later than five years after the IIP is approved.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that
provides safe and reliable natural gas and renewable energy services,
including transportation, distribution, asset management and home
services. NJR is composed of five primary businesses:
- New Jersey Natural Gas, NJR’s principal subsidiary,operates
and maintains 7,400 miles of natural gas transportation and
distribution infrastructure to serve approximately half a million
customers in New Jersey’s Monmouth, Ocean and parts of Morris,
Middlesex and Burlington counties.
- NJR Clean Energy Ventures is 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 North America.
- 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 New Jersey.
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
as The SAVEGREEN Project® and The Sunlight Advantage®.
For more information about NJR:
Visit www.njresources.com.
Follow
us on Twitter @NJNaturalGas
“Like” us at
facebook.com/NewJerseyNaturalGas
Download our free NJR investor
relations app for iPad
View source version on businesswire.com: https://www.businesswire.com/news/home/20190228005844/en/
Source: New Jersey Resources
Investors:
Dennis Puma
732-938-1229
dpuma@njresources.com
Media:
Michael Kinney
732-938-1031
mkinney@njresources.com