New Jersey Natural Gas (NJNG) has filed a petition with the New Jersey Board of Public Utilities to increase its energy tariffs.
The increase will allow the utility to recover investments made to enhance grid safety, maintenance and environmental sustainability.
The investments made and being recovered by the utility includes:
- More than $600 million directed towards upgrading and enhancing the safety and reliability of its transmission and distribution systems.
- Installed over 370 miles of new main to support safe and reliable service for its customers.
- Responsibly acted to keep its system safe and environmentally sound by retiring or replacing approximately 200 miles of aged infrastructure.
- Increased workforce and operating expenses to meet the needs of its customer base.
- Created the most environmentally responsible natural gas delivery system in New Jersey with the fewest leaks-per-mile of any natural gas utility in the state.
NJNG seeks a base rate increase of $128.2 million as part of efforts to raise funds to modernise its operations for service reliability.
An approval of the petition will result in an increase in the price of gas for a residential consumer using 100 therms a month by $19.30, from $101.89 to $121.27.
Inspite the increase, customers of NJNG will still pay 30% lower than 2008 bills due to the decline in wholesale natural gas prices.
Steve Westhoven, COO of NJNG, said: “We continuously invest in our natural gas infrastructure to safely operate a reliable and environmentally responsible system that keeps over 544,000 customers’ homes warm and businesses running.
“These investments periodically require base rate adjustments, achieved through a rigorous approval process with regulators, to ensure our customers have safe and reliable service when they need it. We look forward to the successful resolution of this base rate case that is in the best interest of our customers and our company.”