New Jersey Natural Gas Receives Approval for its Infrastructure Investment Program
October 28 2020 - 1:34PM
Business Wire
Capital Investment Projects to Promote Safety
and Reliability Through Facility Enhancements
New Jersey Natural Gas (NJNG), the principal subsidiary of New
Jersey Resources (NYSE: NJR), received approval from the New Jersey
Board of Public Utilities to invest $150 million over five years on
a series of infrastructure projects designed to support the
enhanced safety and reliability of its natural gas distribution
system.
“As a regulated utility and lifeline service provider, we have a
responsibility to provide safe and reliable service. The Board of
Public Utilities’ approval today reflects that commitment,” said
Steve Westhoven, President and CEO of New Jersey Natural Gas.
“Through our Infrastructure Investment Program, we will continue
making critical investments to strengthen our world-class delivery
system and provide the essential service our customers depend
on.”
Originally filed in February 2019, the Infrastructure Investment
Program (IIP) consists of a series of 24 natural gas transmission
and distribution replacement and enhancement projects, including
looping reinforcements, trunk line system upgrades and a regulatory
station reconstruction. Other projects include the installation of
47,500 protective devices on regulator vents in flood prone areas,
and approximately 8,000 excess flow valves, which automatically
restrict the flow of natural gas if a service line is broken. Each
of these projects will help further strengthen NJNG’s delivery
system and enhance safety, reliability and resiliency
NJNG voluntarily withdrew the information technology (IT)
upgrade component of its original filing, and will seek to recover
associated costs in a future proceeding. NJNG’s existing IT system
was installed between 1994 and 1997 and will no longer have
extended support after April 2025. The IT upgrade will update and
improve NJNG’s billing, customer service, asset management, work
order and accounting systems, as well as strengthen its
cybersecurity program.
A typical residential heating customer using 1,000 therms per
year could see a cumulative bill impact of 2.4 percent or a total
of $28 over the five-year program. Beginning in 2021, NJNG will
make annual filings to the BPU to recover the cost for its
investments placed in service over the five-year program.
Additionally, NJNG will file a base rate case no later than five
years after the implementation of the IIP.
Forward-Looking
Statements
Certain statements within this release are 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 NJNG’s Infrastructure Investment Program, IT
upgrade, future rate cases and filings and any impact on
residential heating customers’ bills.
Additional information and factors that could cause actual
results to differ materially from NJR’s expectations are contained
in NJR’s filings with the U.S. Securities and Exchange Commission
(SEC), including NJR’s Annual Reports on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K,
and other SEC filings, which are available at the SEC’s web site,
http://www.sec.gov. Information included in this release is
representative as of today only and while NJR periodically
reassesses material trends and uncertainties affecting NJR’s
results of operations and financial condition in connection with
its preparation of management’s discussion and analysis of results
of operations and financial condition contained in its Quarterly
and Annual Reports filed with the SEC, NJR does not, by including
this statement, assume any obligation to review or revise any
particular forward-looking statement referenced herein in light of
future events.
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 Venturesinvests in, owns and operates
solar projects with a total capacity of more than 350 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.
- NJR Midstream 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 percent equity
ownership in the Steckman Ridge natural gas storage facility, and
our 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 1,100 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:
www.njresources.com.
Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
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version on businesswire.com: https://www.businesswire.com/news/home/20201028005976/en/
Media: Michael Kinney 732-938-1031
mkinney@njresources.com
Investor: Dennis Puma 732-938-1229
dpuma@njresources.com
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