New Jersey Board of Public Utilities Approves New Rates for New Jersey Natural Gas
New Jersey Natural Gas (NJNG) has received approval from the New Jersey Board of Public Utilities for a $157 million base rate increase. The settlement reflects a rate base of $3.25 billion, an overall rate of return of 7.08% (including a 9.6% return on equity with 54% equity ratio), and a 3.21% composite depreciation rate. The increase will help recover costs from $850 million in infrastructure investments made since 2021, including system enhancements, looping and reinforcement projects, replacement of 140 miles of vintage distribution mains, modernization of customer service operations, and cybersecurity improvements. The settlement also addresses COVID-19 pandemic-related arrearages.
New Jersey Natural Gas (NJNG) ha ricevuto l'approvazione dal New Jersey Board of Public Utilities per un aumento tariffario di $157 milioni. L'accordo riflette una base tariffaria di $3,25 miliardi, un tasso di ritorno complessivo del 7,08% (compreso un ritorno del 9,6% sul capitale proprio con un rapporto di capitale del 54%) e un tasso di ammortamento composito del 3,21%. L'aumento contribuirà a recuperare i costi derivanti da $850 milioni di investimenti infrastrutturali effettuati dal 2021, inclusi miglioramenti al sistema, progetti di looping e rafforzamento, sostituzione di 140 miglia di tubazioni di distribuzione obsolete, modernizzazione delle operazioni di servizio clienti e miglioramenti della cybersecurity. L'accordo affronta anche i debiti accumulati a causa della pandemia di COVID-19.
New Jersey Natural Gas (NJNG) ha recibido la aprobación de la Junta de Servicios Públicos de Nueva Jersey para un aumento de tarifario de $157 millones. El acuerdo refleja una base tarifaria de $3.25 mil millones, un retorno total del 7.08% (incluyendo un retorno del 9.6% sobre el capital con un ratio de capital del 54%) y una tasa de depreciación compuesta del 3.21%. El aumento ayudará a recuperar los costos de $850 millones en inversiones de infraestructura realizadas desde 2021, incluyendo mejoras en el sistema, proyectos de bucle y refuerzo, reemplazo de 140 millas de antiguas tuberías de distribución, modernización de las operaciones de servicio al cliente y mejoras en ciberseguridad. El acuerdo también aborda las deudas relacionadas con la pandemia de COVID-19.
뉴저지 내추럴 가스(NJNG)는 뉴저지 공공 유틸리티 위원회로부터 1억 5700만 달러의 기본 요금 인상에 대한 승인을 받았습니다. 이번 합의는 32억 5000만 달러의 요금 기반, 총 수익률 7.08%(자본 비율 54%에 따른 자본 이익률 9.6% 포함) 및 3.21%의 복합 감가상각률을 반영합니다. 이번 인상은 2021년 이후 8억 5000만 달러의 인프라 투자에서 발생한 비용을 회수하는 데 도움이 될 것입니다. 여기에는 시스템 개선, 루핑 및 강화 프로젝트, 140마일의 구식 배급관 교체, 고객 서비스 운영 현대화 및 사이버 보안 개선이 포함됩니다. 이번 합의는 COVID-19 팬데믹으로 인한 연체문제도 다룹니다.
New Jersey Natural Gas (NJNG) a reçu l'approbation de la Commission des services publics du New Jersey pour une augmentation tarifaire de 157 millions de dollars. Le règlement reflète une base tarifaire de 3,25 milliards de dollars, un rendement global de 7,08% (y compris un rendement de 9,6% sur les fonds propres avec un ratio de 54% de fonds propres) et un taux d'amortissement composite de 3,21%. L'augmentation aidera à récupérer les coûts liés à 850 millions de dollars d'investissements en infrastructure effectués depuis 2021, y compris des améliorations du système, des projets de bouclage et de renforcement, le remplacement de 140 miles de canalisations de distribution anciennes, la modernisation des opérations de service à la clientèle et des améliorations en matière de cybersécurité. Le règlement aborde également les arriérés liés à la pandémie de COVID-19.
New Jersey Natural Gas (NJNG) hat die Genehmigung der New Jersey Board of Public Utilities für eine Tariferhöhung von 157 Millionen Dollar erhalten. Die Einigung spiegelt eine Tarifbasis von 3,25 Milliarden Dollar wider, eine Gesamtrendite von 7,08% (einschließlich einer Eigenkapitalrendite von 9,6% bei einem Eigenkapitalanteil von 54%) und eine composite Abschreibungsrate von 3,21%. Die Erhöhung hilft, die Kosten von 850 Millionen Dollar an Infrastrukturinvestitionen, die seit 2021 getätigt wurden, zurückzuholen, darunter Systemverbesserungen, Schleifen- und Verstärkungsprojekte, den Austausch von 140 Meilen alter Verteilungshauptleitungen, die Modernisierung des Kundenservice und Verbesserungen der Cybersicherheit. Die Einigung behandelt auch die Rückstände im Zusammenhang mit der COVID-19-Pandemie.
- Secured regulatory approval for $157 million base rate increase
- Significant infrastructure investments of $850 million since 2021
- Rate base increased to $3.25 billion
- System improvements position company to deliver next-generation clean fuels
- Lowest leak rate per mile among New Jersey natural gas utilities
- Rate increase may impact customer affordability
- High capital expenditure requirements for infrastructure upgrades
Insights
The
The settlement's approval of cost recovery for
The regulatory framework supports NJNG's transition toward clean energy initiatives, particularly in hydrogen and renewable natural gas integration, aligning with New Jersey's environmental goals while maintaining strong financial fundamentals.
NJNG's infrastructure modernization demonstrates industry-leading environmental performance, achieving the lowest leak rate per mile among New Jersey utilities. This operational excellence reduces methane emissions and positions the company advantageously for upcoming environmental regulations.
The approved investments support critical system adaptations for future clean energy integration. The ability to transport hydrogen and renewable natural gas through upgraded infrastructure creates strategic value, particularly as states push for decarbonization. The combination of system reliability improvements and environmental preparedness represents a forward-thinking approach to utility infrastructure management.
“This is a reasonable, fair settlement that recognizes the value of the approximately
After a thorough review by regulators, the settlement reflects a rate base of
The approved rates help ensure the continued operation of NJNG’s business and recovers costs associated with investments made to support critical resiliency efforts, such as looping and reinforcement projects and the replacement of 140 miles of vintage distribution mains and associated services, as well as the modernization of NJNG’s Customer Service and Dispatch operations and cybersecurity enhancements consistent with industry standards. It also resolves any outstanding arrearages incurred due to the COVID-19 pandemic.
NJNG’s infrastructure investments have made its system one of the most environmentally sound in the state as measured by the fewest leaks per mile of any natural gas utility in
Energy assistance is available for customers struggling to pay their natural gas bill. Email energyassist@njng.com or call 800-221-0051 to learn more about eligibility and available programs. Through SAVEGREEN®, NJNG also offers energy-efficiency rebates and financing options for high-efficiency equipment to help customers save energy and money. For more information, visit savegreen.com.
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:
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New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s
Monmouth ,Ocean ,Morris ,Middlesex ,Sussex andBurlington counties. - Clean Energy Ventures invests in, owns and operates solar projects, providing residential and commercial customers with low-carbon solutions.
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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, 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 1,300 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.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241121244098/en/
Media:
Mike Kinney
732-938-1031
mkinney@njresources.com
Investor:
Adam Prior
732-938-1145
aprior@njresources.com
Source: New Jersey Natural Gas
FAQ
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