New Jersey Natural Gas Files with the New Jersey Board of Public Utilities to Recover Costs for Infrastructure Programs
New Jersey Natural Gas (NJNG), the regulated subsidiary of New Jersey
Resources (NYSE: NJR), today filed with the New Jersey Board of Public
Utilities (BPU) seeking recovery of costs associated with its New Jersey
Reinvestment in System Enhancement (NJ RISE) and Safety Acceleration and
Facility Enhancement II (SAFE II) programs. If approved, the typical
residential heating customer using 100 therms a month would see an
increase of $1.08, or 1.1 percent, on their monthly bill effective
October 1, 2018.
“Our customers count on us to keep their homes warm and businesses
running,” said Stephen Westhoven, executive vice president and COO of
New Jersey Resources. “The infrastructure investments we are making
through programs, such as SAFE II and NJ RISE, strengthen our system and
deliver safe, reliable service to our customers – now and in the future.”
In 2014, the BPU approved NJ RISE and a total investment of $102.5
million for a series of capital projects designed to help mitigate the
impact of severe weather events by enhancing the resiliency of its
natural gas distribution and transmission systems. Over the past 12
months, NJNG installed 3,300 feet of a secondary natural gas main
between Brick and Mantoloking in northern Ocean County, with expected
operation by April 2018. The company completed the reinforcement of a
regulator station in Long Beach Island that was placed into service in
November 2017, with complete construction expected in April 2018. NJNG
also expects to install and place into service approximately 9,000 feet
of a secondary natural gas line into Seaside Park by June 2018. These
upgrades will help minimize the number and duration of outages, improve
NJNG’s ability to respond to and control service disruptions and enhance
the safety and reliability of its system
In 2016, the BPU approved NJNG’s SAFE II program to replace the
remaining approximately 276 miles of unprotected steel main and
associated services in its distribution system. NJNG has been routinely
addressing the replacement of these facilities, and has eliminated an
additional 20 miles of unprotected steel main through February 2018. To
date, it has replaced a total of 91 miles. In 2015, NJNG became the
first natural gas utility in the state to eliminate all cast iron from
its system.
For both programs, NJNG is allowed to earn an Allowance for Funds Used
During Construction (AFUDC) rate on its invested capital during
construction and request rate increases for related spending in annual
filings over the duration of the programs. NJNG is seeking to adjust its
rates effective October 1, 2018 to recover approximately $60.4 million
of related NJ RISE and SAFE II costs made through June 30, 2018,
resulting in a base rate increase of $6.9 million.
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 over 7,400 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.
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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.
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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.
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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.
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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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