New Jersey Natural Gas Submits Annual BGSS and CIP Filing to the New Jersey Board of Public Utilities
29 May 2021 - 4:19AM
Business Wire
Proposed 2.1% Increase Driven by Higher
Commodity Costs and Demand Charges
New Jersey Natural Gas (NJNG), the regulated subsidiary of New
Jersey Resources (NYSE: NJR), today submitted its annual Basic Gas
Supply Service (BGSS) and Conservation Incentive Program (CIP)
filing to the New Jersey Board of Public Utilities (BPU). NJNG is
seeking to adjust its natural gas cost recovery rates due to higher
market prices and demand charges.
The BGSS represents the cost of the commodity that is passed
through to customers. Any change to this rate does not result in a
change in profits to the company.
“New Jersey Natural Gas is committed to providing our customers
with safe, reliable natural gas service in the most cost-effective
manner,” said Steve Westhoven, president and CEO of New Jersey
Natural Gas. “We actively work to optimize our natural gas
purchasing strategies to manage the effect of higher natural gas
costs and minimize the impact on our customers.”
NJNG continues to monitor market conditions and look for
opportunities to lower costs and benefit its customers. In December
and January of this past winter heating season, NJNG provided
residential and small commercial customers with bill credits
totaling $20.6 million due to lower wholesale natural gas prices.
These bill credits helped reduce the typical residential heat
customer’s annual bill by approximately 3.6% or about $41.
The proposed adjustment to the BGSS would be offset in part by a
slight decrease to its CIP recovery rate. The net effect is an
increase of 2.1%, or $24.20, for the typical residential heating
customer using 1000 therms annually.
In its filing, NJNG is seeking an increase of 0.5% related to
its BGSS rate and a 1.9 % increase related to its Balancing Charge.
The BGSS and Balancing Charge recover the cost of natural gas
supply used to serve its customers and balance deliveries with
customer usage. NJNG also requested a 0.3% decrease related to its
CIP, which is designed to help normalize year-to-year fluctuation
from changing weather and usage patterns on both customers’ bills
and NJNG’s financial margins.
Pending BPU approval, NJNG’s proposed BGSS and CIP rate changes
would take effect October 1, 2021.
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 7,500 miles of natural gas
transportation and distribution infrastructure to serve over half a
million customers in New Jersey’s Monmouth, Ocean, Morris,
Middlesex, and Burlington counties.
- NJR Clean Energy Ventures invests in, owns, and operates
solar projects with a total capacity of more than 360 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.
- Storage & Transportation serves customers from local
distributors and producers to electric generators and wholesale
marketers through its ownership of Leaf River Energy Center and the
Adelphia Gateway Pipeline Project, as well as our 50% equity
ownership in the Steckman Ridge natural gas storage facility, and
our 20% 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 nearly 1,200 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:
www.njresources.com Follow us on Twitter @NJNaturalGas. “Like”
us on facebook.com/NewJerseyNaturalGas.
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version on businesswire.com: https://www.businesswire.com/news/home/20210528005443/en/
Media: Michael Kinney 732-938-1031
mkinney@njresources.com
Investors: Dennis Puma 732-938-1229
dpuma@njresources.com
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