WALL, N.J.--(BUSINESS WIRE)--
New Jersey Natural Gas Company (NJNG), a regulated subsidiary of New Jersey Resources (NYSE:NJR), today submitted a series of filings to the New Jersey Board of Public Utilities (BPU) seeking to adjust its rates for the 2017-2018 winter heating season. The overall impact of the filings will be an increase of 2.9 percent for the typical customer. Pending BPU approval, the monthly bill for a typical residential heat customer using 100 therms a month will go from $105.25 to $108.27, an increase of $3.02.
“Every day, the women and men of New Jersey Natural Gas give their best to provide our customers with safe, reliable service at a competitive price,” said Mariellen Dugan, chief operating officer of New Jersey Natural Gas. “Over the past eight years, customers have benefited from the stable, low cost of natural gas. While the proposed rate adjustment we filed today is a reflection of higher market prices, customers’ annual bills are still 41 percent lower than 2008 – a savings of nearly $700 - due to reductions in the cost of natural gas supply.”
In its filings, NJNG is seeking a 4.2 percent increase related to its Basic Gas Supply Service (BGSS) rate and a 0.6 percent increase related to its Balancing Charge. 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. Market prices are 26 percent higher than last year, which is the primary factor driving NJNG’s proposed increase. Any change in the BGSS is passed through to the customer and does not represent an increase in company profits.
NJNG also requested a 1.5 percent and 0.4 percent decrease related to its Conservation Incentive Program (CIP) and Energy-Efficiency (EE) rates, respectively. The CIP normalizes year-to-year fluctuation from changing weather and usage patterns on both customers’ bills and NJNG’s financial margins. Since its inception in 2006, the CIP has helped NJNG customers realize cost savings of nearly $370 million through reduced energy usage. NJNG’s EE rate recovers costs associated with offerings through The SAVEGREEN Project®, including investment in energy-efficient equipment upgrades and whole-house improvements.
Pending BPU approval, NJNG expects the new rates to go into effect on October 1, 2017.
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 7,300 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 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 Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with a total capacity of more than 280 megawatts, providing residential and commercial customers with low-carbon solutions.
- 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®.
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