New Jersey Natural Gas Files Base Rate Case With the New Jersey Board of Public Utilities
March 30 2021 - 11:35AM
Business Wire
New Jersey Natural Gas (NJNG), the principal subsidiary of New
Jersey Resources (NYSE: NJR), today filed a petition with the New
Jersey Board of Public Utilities (BPU) requesting an increase of
approximately $165.7 million to its base rates. Since its last base
rate filing in 2019, NJNG has invested nearly $850 million in the
safety, reliability and environmental benefits of its delivery
system and operations. These investments are already at work
benefiting customers, but are not currently reflected in rates.
“Nothing is more important to our company than safely and
reliably delivering the energy our customers depend on for their
homes and businesses,” said Steve Westhoven, President and CEO of
New Jersey Resources. “We are dedicated to meeting that commitment
in a sustainable, responsible way. The investments we’ve made in
our system, as reflected in this filing, deliver on that
commitment.”
The proposed rate adjustment is necessary to cover costs
associated with infrastructure investments made by NJNG to maintain
and enhance its natural gas delivery system and ensure the
responsible operation of its business, including:
- Investment in plant in service, including improvements to the
overall integrity of its natural gas transmission and distribution
systems.
- Continued infrastructure replacement – an ongoing priority for
NJNG that has made its system one of the most environmentally sound
in New Jersey, as measured by leaks per mile.
- Development of a green hydrogen fuel project to reduce NJNG’s
emissions as part of its commitment to sustainability and a clean
energy future.
- Construction of a training facility to provide mandated
operator qualification and safety-related training, including
classroom and simulated field activities for NJNG employees and
third-party contractors, as well as training opportunities for
local emergency personnel.
As part of its filing, NJNG is also seeking rate recovery for
the Southern Reliability Link (SRL). NJNG expects the 30-mile
transmission pipeline project to be placed into service this fall.
Approved by the BPU in 2016, the SRL provides a new natural gas
feed into the southern end of NJNG’s service territory,
significantly enhancing the reliability and resiliency of its
distribution system.
Currently, more than 85% of the natural gas supply used to serve
customers in Monmouth, Ocean and Burlington counties is delivered
through a single feed at the northern end of NJNG’s system. Any
significant supply disruption on this line could negatively impact
a majority of NJNG’s nearly 560,000 customers. SRL directly
mitigates this risk by accessing a second interstate supply source
that interconnects with the southern end of NJNG’s system.
Through this filing, NJNG is seeking to recover in rates
appropriate costs for investments already made and expenses
associated with operating its business, and to achieve a fair and
reasonable outcome for ratepayers.
“We take our responsibility to deliver exceptional service at a
reasonable rate seriously. This is achieved through a rigorous
approval process with regulators,” Westhoven said. “We look forward
to a successful resolution of this petition that is in the best
interest of our customers and our company.”
Any customer having difficulty paying their natural gas bill
should visit njng.com/energyassistance to learn about available
energy assistance programs. Energy assistance is available for
income-eligible customers through the Low Income Home Energy
Assistance Program (LIHEAP), Universal Service Fund (USF) and
Payment Assistance for Gas and Electric (PAGE) Program, NJ SHARES
and NJNG’s own Gift of Warmth program.
Forward-Looking Statements:
This release contains 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 the base rate
case, future NJR capital expenditures and infrastructure
investments and the ability to complete SRL.
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 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 Ventures invests in, owns and operates
solar projects with a total capacity of more than 357 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 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 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: 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/20210330005818/en/
Media Contact: Michael Kinney 732-938-1031
mkinney@njresources.com
Investor Contact: Dennis Puma 732-938-1229
dpuma@njresources.com
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