Proposed 2.1% Increase Driven by Higher Commodity Costs and Demand Charges
New Jersey Natural Gas (NJNG), the regulated subsidiary of New Jersey Resources (NYSE: NJR), today submitted its annual Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) filing to the New Jersey Board of Public Utilities (BPU). NJNG is seeking to adjust its natural gas cost recovery rates due to higher market prices and demand charges.
The BGSS represents the cost of the commodity that is passed through to customers. Any change to this rate does not result in a change in profits to the company.
"New Jersey Natural Gas is committed to providing our customers with safe, reliable natural gas service in the most cost-effective manner," said Steve Westhoven, president and CEO of New Jersey Natural Gas. "We actively work to optimize our natural gas purchasing strategies to manage the effect of higher natural gas costs and minimize the impact on our customers."
NJNG continues to monitor market conditions and look for opportunities to lower costs and benefit its customers. In December and January of this past winter heating season, NJNG provided residential and small commercial customers with bill credits totaling $20.6 million due to lower wholesale natural gas prices. These bill credits helped reduce the typical residential heat customer’s annual bill by approximately 3.6% or about $41.
The proposed adjustment to the BGSS would be offset in part by a slight decrease to its CIP recovery rate. The net effect is an increase of 2.1%, or $24.20, for the typical residential heating customer using 1000 therms annually.
In its filing, NJNG is seeking an increase of 0.5% related to its BGSS rate and a 1.9 % increase related to its Balancing Charge. The BGSS and Balancing Charge recover the cost of natural gas supply used to serve its customers and balance deliveries with customer usage. NJNG also requested a 0.3% decrease related to its CIP, which is designed to help normalize year-to-year fluctuation from changing weather and usage patterns on both customers’ bills and NJNG’s financial margins.
Pending BPU approval, NJNG’s proposed BGSS and CIP rate changes would take effect October 1, 2021.
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 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, and Burlington counties.
NJR Clean Energy Ventures invests in, owns, and operates solar projects with a total capacity of more than 360 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 physical natural gas services and customized energy solutions to its customers across North America.
Storage & Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River Energy Center and the Adelphia Gateway Pipeline Project, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility, and our 20% 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 throughout New Jersey.
NJR and its nearly 1,200 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:
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