The utility is seeking to invest $507 million in the Infrastructure Investment Program (IIP) over the next five years, and recover associated capital investment costs through six annual adjustments to its base rate.
The first change would come in October 2020 and NJNG would submit an annual cost recovery filing for the duration of the program for investments placed.
Steve Westhoven, president and COO of New Jersey Resources, characterized the efforts as part of the company’s “fundamental responsibility” to serve its customers.
“This obligation is what drives our investments and our commitment to proactively strengthen our systems, improve our operations and continue to exceed our customers’ expectations,” he said in a release Thursday.
The IIP includes projects to replace natural gas transmission and distribution systems, and upgrading NJNG’s IT systems from programs originally installed between 1994 and 1997. In addition to increasing cybersecurity, NJNG said the upgrade will strengthen infrastructure and include new billing, asset management, work order, accounting and customer service systems.
According to NJNG, a typical residential heating customer could see an annual average increase of about 1.8 percent – or $18.35 – over the recovery period. NJNG said it would file a base rate case no later than five years after the IIP’s approval.