New Jersey Natural Gas Submits Annual Basic Gas Supply Service Filing to the New Jersey Board of Public Utilities
June 01 2022 - 2:43PM
Business Wire
Proposed Increase Driven Primarily by Higher
Commodity Costs
New Jersey Natural Gas (NJNG), a regulated subsidiary of New
Jersey Resources (NYSE: NJR), today submitted its annual Basic Gas
Supply Service (BGSS) filing to the New Jersey Board of Public
Utilities (BPU) seeking to adjust its periodic BGSS rates for
residential and small commercial customers primarily to reflect a
significant rise in wholesale market prices for natural gas.
For the typical heating customer using 100 therms a month, the
proposed increase related to the BGSS rate is 12.5% and the
proposed increase related to the Balancing Charge is 1.1%. The BGSS
and Balancing Charge recover the cost of natural gas supply used to
serve customers and balance deliveries with customer usage. 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.
A Steep Rise in Wholesale Commodity Prices Wholesale
natural gas prices on the NYMEX – a benchmark index for gas
commodity pricing – have more than doubled since May 2021. While
the underlying reasons for higher market prices cannot be tied to
one specific cause or event, potential factors influencing the
increase include global geopolitical issues, increased demand for
liquefied natural gas exports, the impacts of supply chain issues
on production and supply-demand imbalances.
NJNG’s Purchasing Strategies Help Minimize Impact to
Customers NJNG’s hedging and purchasing strategies focus on
securing, managing and maintaining the most reliable and
cost-effective supply mix and help protect customers from the full
impact of market volatility and higher commodity prices. As a
result, over 80% of NJNG’s projected supply for the 2022-2023
winter heating season is already hedged, lessening the impact of
the market price increase to customers.
“Across the U.S., we see the effects of inflation. No one wants
prices to go up, which is why NJNG works year-round to manage our
natural gas supply portfolio to help mitigate the impact of these
increases on our customers,” said Steve Westhoven, president and
CEO of New Jersey Natural Gas. “We continue to monitor market
conditions and will look for opportunities to lower costs and pass
the benefits on to our customers.”
Energy Assistance and Flexible Payment Options Available
NJNG wants customers to know they have options to help manage,
lower or receive grant assistance for their utility bills. Any
customer having trouble paying their natural gas bills should
contact NJNG to learn about available energy assistance programs.
Resources include deferred payment arrangements, budget plans,
energy bill payment assistance, one-time grants and low- or no-cost
energy-efficiency programs to help reduce consumption and lower
bills.
If you or someone you know is a NJNG residential customer in
need of assistance, call 800-221-0051 and say "energy assistance"
at the prompt to speak with an NJNG customer service representative
or email us at energyassist@njng.com.
Reduce Your Bills by Reducing Energy Usage NJNG offers
energy-efficiency programs through The SAVEGREEN Project®,
including rebates and financing options for high-efficiency
equipment, to help customers save energy and money. A home energy
assessment, which can help identify ways to use energy more
efficiently and reduce energy bills, is one way to offset these
commodity-driven price increases. For more information, visit
savegreenproject.com.
Additional Filings NJNG is also seeking a 2.2% increase
related to its Conservation Incentive Program (CIP) for a typical
residential heating customer and a 0.1% increase related to its
Energy Efficiency (EE) rate. The CIP normalizes year-to-year
fluctuation from changing weather and usage patterns on both
customers’ bills and NJNG’s financial margins. The EE rate recovers
costs associated with SAVEGREEN, including investment in
energy-efficient equipment upgrades and whole-house improvements.
Since its inception in 2009, NJNG has invested nearly $270 million
and helped over 92,000 customers save energy and money by making
energy-efficiency upgrades.
The combined effect of the proposed BGSS, CIP and EE adjustments
is an increase of 15.9%, or $21.63, for the typical residential
heating customer using 100 therms a month.
Pending BPU approval, NJNG’s proposed BGSS and CIP rate changes
will take effect October 1, 2022.
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 7,600 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.
- Clean Energy Ventures invests in, owns and operates
solar projects with a total capacity of nearly 370 megawatts,
providing residential and commercial customers with low-carbon
solutions.
- 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 and Transportation serves customers from local
distributors and producers to electric generators and wholesale
marketers through its ownership of Leaf River and the Adelphia
Gateway Pipeline Project, as well as our 50% equity ownership in
the Steckman Ridge natural gas storage facility.
- 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 over 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: Visit 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/20220601006110/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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