New Jersey Natural Gas Files to Build Natural Gas Vehicle Refueling Stations
June 16 2011 - 3:05PM
Business Wire
New Jersey Natural Gas (NJNG) today submitted a filing with the
New Jersey Board of Public Utilities seeking authority to invest up
to $15 million to build compressed natural gas vehicle refueling
stations in Monmouth, Ocean and Morris counties.
If approved, NJNG estimates it could build between seven and ten
refueling stations at host company facilities throughout its
service territory. The host locations, which could be private
companies or public and municipal entities, will use part of each
station’s refueling capacity and also make the stations available
to the public.
“By building the infrastructure to refuel natural gas vehicles,
New Jersey Natural Gas can help stimulate the market for
alternative fuel vehicles as well as economic development in our
state,” said Laurence M. Downes, chairman and chief executive
officer of New Jersey Natural Gas. “Additionally, if we can
encourage the use of domestic, competitively priced natural gas as
a fuel for transportation, we can begin to reduce our reliance on
petroleum-based fuels and move toward greater energy independence.
Just as important, projects like this will unlock significant
savings for businesses and taxpayers, alike.”
Through today’s filing, NJNG is seeking to promote and develop a
strong market for natural gas vehicles in New Jersey by increasing
the availability of refueling stations. One of the major obstacles
to the increased use of natural gas vehicles has been a lack of
refueling infrastructure. Currently, there are only three refueling
stations in the state that are open to the public. By growing the
state’s refueling infrastructure, NJNG intends to stimulate the
entry of natural gas vehicles into fleets within New Jersey.
Increasing the use of natural gas vehicles to meet the state’s
transportation needs provides a cost effective and environmentally
cleaner choice of fuel. Based on the pricing structure requested in
the filing the current fuel price would be approximately $1.60 per
gasoline gallon equivalent, a tremendous savings for businesses and
individuals. Additionally, natural gas powered vehicles produce up
to 30 percent fewer greenhouse gas emissions than diesel according
to the American Gas Association.
This investment will also serve to bolster the economy by
creating and retaining both direct and indirect job opportunities.
Building new refueling infrastructure provides construction work
along with the growth opportunities for equipment manufacturers,
and increased demand for natural gas vehicles necessitates
increased vehicle production and sale. All of which provides direct
and indirect economic benefits for local businesses, stores and
suppliers.
If approved by the BPU, NJNG would begin construction of these
stations immediately but no later than December 31, 2012. NJNG
would submit a cost recovery filing to the BPU in October 2012,
requesting a base rate change to be effective early in 2013.
Proceeds from the delivery of the associated natural gas, along
with any available federal and state incentives, will be credited
back to the ratepayers to help offset the cost of this investment.
There would be no change to customers’ bills associated with this
filing during the 2011-12 winter heating season. The total
anticipated impact for the average residential customer from the
October 2012 filing would be no more than four-tenths of one
percent increase.
New Jersey Natural Gas is the principal subsidiary of New Jersey
Resources (NJR), a Fortune 1000 company, that provides reliable
energy and natural gas services including transportation,
distribution and asset management in states from the Gulf Coast to
the New England regions, including the Mid-Continent region, the
West Coast and Canada, while investing in and maintaining an
extensive infrastructure to support future growth. With over $2.5
billion in annual revenues, NJR safely and reliably operates and
maintains 6,800 miles of natural gas transportation and
distribution infrastructure to serve nearly half a million
customers; develops and manages a diverse portfolio of 1.6 Bcf/day
of transportation capacity and over 62 Bcf of storage capacity; and
provides appliance installation, repair and contract service to
nearly 150,000 homes and businesses. Additionally, NJR holds
investments in midstream assets through equity partnerships
including Steckman Ridge and Iroquois. Through Conserve to
Preserve®, NJR is helping customers save energy and money by
promoting conservation and encouraging efficiency. For more
information about NJR, visit www.njliving.com.
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