New Jersey Natural Gas Files Annual Rate Adjustments With the New Jersey Board of Public Utilities

Rhea-AI Summary

New Jersey Natural Gas (NJNG), a subsidiary of New Jersey Resources (NYSE: NJR), has filed its annual rate adjustments with the New Jersey Board of Public Utilities (BPU). The filings include the Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) rates, along with costs for energy-efficiency (EE) programs. The overall impact will be a 0.5% increase for typical residential heating customers, equating to $0.71 more per month. NJNG aims to reduce the BGSS rate while increasing the Balancing Charge.

The warmer-than-normal winter led to a minimal CIP-related decrease of 0.1%. NJNG also seeks a 0.6% increase to recover costs from its SAVEGREEN energy-efficiency programs. Pending BPU approval, these changes will take effect on October 1, 2024.

Positive

• NJNG's overall rate adjustment leads to a minimal 0.5% increase for residential heating customers.
• The BGSS rate will see a reduction.
• Winter weather conditions resulted in a modest 0.1% decrease related to the CIP.
• SAVEGREEN program investments continue to provide energy efficiency solutions and benefits to customers.

Negative

• Typical residential heating customers will incur an additional $0.71 per month due to the rate adjustments.
• A 0.6% increase in rates is required to recover costs associated with energy-efficiency investments.
• The Balancing Charge will see an increase, offsetting the BGSS rate reduction.

Costs for Residential Heating Customers Remain Essentially Flat

WALL, N.J.--(BUSINESS WIRE)-- New Jersey Natural Gas (NJNG), a regulated subsidiary of New Jersey Resources (NYSE: NJR), today filed its annual Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) rates with the New Jersey Board of Public Utilities (BPU). Separately, NJNG also filed to recover costs associated with its energy-efficiency (EE) programs. The overall impact of these filings is a 0.5% increase for typical residential heating customers purchasing their supply from NJNG.

“New Jersey Natural Gas is dedicated to providing safe, reliable natural gas service at a reasonable price,” said Patrick Migliaccio, senior vice president and COO of New Jersey Natural Gas. “Our team works hard to implement strategies and manage supplies on behalf of our customers, and we are pleased to be able to keep these costs essentially flat this year. We will continue to monitor market conditions to look for opportunities that benefit our customers.”

In its filing, NJNG is seeking a reduction to its BGSS rate, which is offset by an equal increase to its Balancing Charge. Winter weather remained warmer-than-normal year over year resulting in a minimal decrease of 0.1% related to the CIP. In its energy-efficiency recovery filing, NJNG is seeking a 0.6% increase to recover costs associated with the investment in its SAVEGREEN programs. The overall effect of these filings is an increase of 0.5%, or $0.71 per month, for the typical residential heating customer using 100 therms a month.

The BGSS and Balancing Charge recover the cost of natural gas supplied to customers and balance deliveries with customer usage. The BGSS is a pass through to customers. Any change to this rate does not result in a change in profits for the company. The CIP helps normalize year-to-year fluctuation from changing weather and usage patterns on both customers’ bills and NJNG’s financial margins.

SAVEGREEN provides energy efficiency solutions, including rebates and incentives, to help participating customers save energy, save money and reduce emissions. Launched in 2009, SAVEGREEN has helped thousands of customers improve the efficiency of their homes and businesses. For more information on available energy-efficiency programs and offers, visit SAVEGREEN.com.

Pending BPU approval, NJNG’s requested rate adjustment will take effect October 1, 2024.

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 natural gas transportation and distribution infrastructure to serve nearly 582,000 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 474 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, 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.
Follow us on X (formerly Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240531403236/en/

Media:

Mike Kinney

732-938-1031

mkinney@njresources.com

Investors:

Adam Prior

732-938-1145

aprior@njresources.com

Source: New Jersey Natural Gas

FAQ

What is the overall impact of NJNG's annual rate adjustments for residential customers?

The overall impact is a 0.5% increase, which equates to an additional $0.71 per month for typical residential heating customers.

When will NJNG's new rate adjustments take effect?

Pending approval from the New Jersey Board of Public Utilities, the new rate adjustments will take effect on October 1, 2024.

What caused NJNG's Conservation Incentive Program (CIP) rate change?

The warmer-than-normal winter weather resulted in a minimal 0.1% decrease related to the CIP.

How will the BGSS and Balancing Charge rates change with NJNG's new filing?

NJNG is seeking a reduction in the BGSS rate, which will be offset by an equal increase in the Balancing Charge.

Why is NJNG seeking a 0.6% increase in rates?

NJNG is seeking a 0.6% rate increase to recover costs associated with investments in its SAVEGREEN energy-efficiency programs.