New Jersey Natural Gas Files Annual Rate Adjustments With the New Jersey Board of Public Utilities
New Jersey Natural Gas (NJNG), a regulated subsidiary of New Jersey Resources (NYSE: NJR), today filed its annual Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) rates with the New Jersey Board of Public Utilities (BPU). Separately, NJNG also filed to recover costs associated with its energy-efficiency (EE) programs. The overall impact of these filings is a decrease of 1.7% for residential heating customers purchasing their supply from NJNG.
"New Jersey Natural Gas is dedicated to providing safe, reliable natural gas service at a reasonable price," said Patrick Migliaccio, senior vice president and COO of New Jersey Natural Gas. "Our team works hard to manage supply costs, and we are pleased to pass these savings on to our customers."
In its filings, NJNG is seeking to reduce its BGSS and Balancing Charge, resulting in a 5.9% reduction to a typical residential heating customer's bill. The decrease is driven by lower market prices and savings generated by the company's supply management strategies. This decrease is partially offset by a 3.1% increase related to the CIP due to the warm weather and lower usage experienced this past heating season. In its other filing, NJNG is also seeking a 1% increase to recover costs associated with the annual investment in its energy-efficiency programs. The net effect of these filings is an overall decrease of 1.7%, or $26.20, for the typical residential heating customers using 1000 therms annually.
The BGSS and Balancing Charge recover the cost of natural gas supply used to serve its customers and balance deliveries with customer usage. The BGSS is a pass through to customers. Any change to this rate does not result in a change in profits for the company. The CIP helps normalize year-to-year fluctuation from changing weather and usage patterns on both customers' bills and NJNG's financial margins. Weather in NJNG's service territory this past heating season was 14.2% warmer-than-normal with January through February 2023 being 26.5% warmer-than-normal.
This latest decrease comes on top of the savings NJNG provided customers in March 2023. Due to a decline in wholesale prices at the time, NJNG was able to lower its BGSS rate and provide a one-time bill credit for residential and small commercial customers, resulting in a decrease of approximately 8% on the annual bill for the typical residential heating customer using 1000 therms a year. NJNG continues to monitor market conditions to look for opportunities that benefit its customers.
Pending BPU approval, NJNG's current proposed rate adjustments would take effect October 1, 2023.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean 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 over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 570,000 customers in New Jersey's Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
- Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 440 megawatts, providing residential and commercial customers with low-carbon solutions.
- Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
- Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
- 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 throughout New Jersey.
NJR and its over 1,300 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.
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