New Jersey Board of Public Utilities Approves Changes to New Jersey Natural Gas Rates
September 22 2017 - 12:51PM
Business Wire
Results in 0.7 Percent Decrease to
Customers’ Bills
New Jersey Natural Gas (NJNG) today received approval from the
New Jersey Board of Public Utilities (BPU) to adjust components of
its rates, which will reduce the typical residential heating
customer’s bill by 0.7 percent. In June, NJNG filed for an increase
of 4.2 percent related to its Basic Gas Supply Service (BGSS) rate
based on market conditions at the time. Due to recent market price
decreases and successful natural gas purchasing strategies,
however, NJNG is able to maintain its current BGSS rate of $0.3654
per therm.
The total net effect is an overall decrease of 0.7 percent on
the typical residential heating customer’s annual bills, effective
October 1, 2017. The typical residential heating customer using
1,000 therms a year would see their annual bill go from $1,070.18
to $1,062.88, a decrease of $7.30.
“Today’s announcement is good news for our customers as we
prepare for the heating season,” said Laurence M. Downes, chairman
and CEO of New Jersey Natural Gas. “We are pleased our efforts will
provide this extra relief to our customers.”
Customers will benefit from a 1.5 percent and 0.4 percent
decrease related to NJNG’s Conservation Incentive Program (CIP) and
Universal Service Fund (USF) rates, respectively. The CIP
normalizes year-to-year fluctuation from changing weather and usage
patterns on both customers’ bills and NJNG’s financial margins,
while the USF is a statewide program providing energy assistance
benefits to income-eligible customers. These rates offset the 0.6
percent increase to customer’s bills related to the Balancing
Charge and 0.6 percent increase related to NJNG’s New Jersey
Reinvestment in System Enhancement (NJ RISE) and Safety
Acceleration and Facility Enhancement (SAFE II) programs. The BGSS
and Balancing Charge recover the costs of natural gas supply
delivered to NJNG’s system to serve its customers and balance
deliveries associated with customer usage. The $4.1 million NJ RISE
and SAFE II base rate increase is associated with capital
investments of $30.5 million through June 30, 2017, which improve
reliability and resiliency of NJNG’s service to customers.
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 six primary businesses:
- New Jersey Natural Gas, NJR’s
principal subsidiary, operates and maintains over 7,300 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.
- NJR Clean Energy Ventures
invests in, owns and operates solar and onshore wind projects with
a total capacity of more than 300 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.
- NJR Midstream serves customers
from local distributors and producers to electric generators and
wholesale marketers through its 50 percent equity ownership in the
Steckman Ridge natural gas storage facility and its stake in
Dominion Midstream Partners, L.P., as well as its 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 more than 1,000 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.Download our free NJR investor
relations app for iPad, iPhone and Android.
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version on businesswire.com: http://www.businesswire.com/news/home/20170922005555/en/
Media:Michael Kinney,
732-938-1031mkinney@njresources.comorInvestors:Dennis Puma,
732-932-1229dpuma@njresources.com
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