New Jersey Natural Gas Files with Board of Public Utilities for Recovery of Costs Associated with NJ Rise and Safe II Programs
March 31 2017 - 11:03AM
Business Wire
New Jersey Natural Gas (NJNG), the regulated subsidiary of New
Jersey Resources (NYSE:NJR), today filed with the New Jersey Board
of Public Utilities (BPU) seeking recovery of costs associated with
its NJ Reinvestment in System Enhancement (NJ RISE) and Safety
Acceleration and Facility Enhancement (SAFE II) programs. If
approved, the typical residential heating customer using 100 therms
a month would see an increase of $0.68, or 0.65 percent, on their
monthly bill.
“We never stop working to ensure safe, reliable service for our
customers,” said Mariellen Dugan, senior vice president and chief
operating officer of New Jersey Natural Gas. “It’s our top priority
and the most important thing we do. The investments we are making
in NJ RISE and SAFE II strengthen the integrity of our system and
enable us to better meet our customers’ expectations.”
Through NJ RISE, approved by the BPU in 2014, NJNG is investing
$102.5 million for a series of capital projects designed to help
mitigate the impact of major weather events by enhancing the
resiliency of its natural gas distribution and transmission
systems. The projects include the installation of secondary natural
gas feeds into Sea Bright, Long Beach Island and the Seaside
Peninsula, as well as the relocation of a regulator station from
Mantoloking to the mainland and two regulator station reinforcement
projects in Mantoloking and Long Beach Island, respectively.
Additionally, NJNG is installing excess flow valves, which restrict
the flow of natural gas when there is a change in pressure, on all
distribution services in coastal communities that may be impacted
by storm surges and flooding. These upgrades will help minimize the
number and duration of outages, improve NJNG’s ability to respond
to and control service disruptions and enhance the safety and
reliability of its system.
In 2016, the BPU approved NJNG’s SAFE II program to replace the
remaining approximately 276 miles of unprotected steel main and
associated services in the company’s distribution system. NJNG has
been routinely addressing the replacement of these facilities, and
in 2015 became the first natural gas utility in New Jersey to
eliminate all cast iron from its system.
For both projects, NJNG is allowed to earn an Allowance for
Funds Used During Construction (AFUDC) rate on its invested capital
during construction and request rate increases for related spending
in annual filings over the duration of the programs. Pending BPU
approval, NJNG is seeking to adjust its rates effective October 1,
2017 to recover approximately $31.4 million of related NJ RISE and
SAFE II costs made through June 30, 2017, resulting in a base rate
increase of $4.3 million.
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 comprised
of five primary businesses:
- New Jersey Natural Gas, NJR’s
principal subsidiary, operates and maintains over 7,300 miles of
natural gas transportation and distribution infrastructure to serve
over half a million customers in New Jersey’s Monmouth, Ocean and
parts of Morris, Middlesex and Burlington counties.
- 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.
- NJR Clean Energy Ventures
invests in, owns and operates solar and onshore wind projects with
a total capacity of nearly 280 megawatts, providing residential and
commercial customers with low-carbon solutions.
- 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 and its stake in
Dominion Midstream Partners, L.P., 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 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 on
facebook.com/NewJerseyNaturalGas.Download our free NJR investor
relations app for iPad, iPhone and Android.
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version on businesswire.com: http://www.businesswire.com/news/home/20170331005512/en/
New Jersey ResourcesMedia:Michael Kinney,
732-938-1031mkinney@njresources.comorInvestors:Joanne
Fairechio, 732-378-4967jfairechio@njresources.comorDennis Puma,
732-938-1229dpuma@njresources.com
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