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NJ Natural Gas requests $222.6M base rate increase

Dawn Furnas//February 6, 2024//

Gas stove

PHOTO: ©ИЗОБРАЖЕНИЯ ПОЛЬЗОВАТЕЛЯ IVANNA PAVLIUK VIA CANVA.COM

Gas stove

PHOTO: ©ИЗОБРАЖЕНИЯ ПОЛЬЗОВАТЕЛЯ IVANNA PAVLIUK VIA CANVA.COM

NJ Natural Gas requests $222.6M base rate increase

Dawn Furnas//February 6, 2024//

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filed a petition with the New Jersey Board of Public Utilities requesting a $222.6 million increase to its base rates.

According to Jan. 31 announcement from the Wall-based New Jersey Resources subsidiary, the increase will support $850 million in infrastructure investments that are not reflected in its current rates.

If the proposal is approved, the bill for a typical NJ Natural Gas residential heating customer using 81 therms a month will jump $29.01. 

Steve Westhoven, New Jersey Natural Gas president and CEO
Westhoven

“Our top priority is to safely and reliably deliver the energy our customers count on to heat their homes and run their businesses,” NJ Natural Gas President and CEO Steve Westhoven said in a statement. “The investments we make in our infrastructure reflect this commitment and the critical role our system plays in reaching New Jersey’s carbon reduction goals. 

Work that focuses on the repair, replacement and modernization of NJ Natural Gas’ system includes: 
  • Upgrades to critical infrastructure, such as the replacement of 140 miles of vintage distribution mains and service lines; 
  • Modernization and enhancement of its customer service and dispatch operations; 
  • Investment in cybersecurity to safeguard customer information and its systems; 
  • Increased labor costs, including the ratification of a new three-year union agreement. 

 

The review could take between nine and 12 months, according to the utility. 

“We look forward to working with our regulators to achieve a successful resolution of this filing that is reasonable and fair for our customers and our company,” Westhoven added. 

NJ Natural Gas’ rate request follows Camden-based New Jersey American Water’s Jan. 19 filing seeking a total annual revenue increase of approximately $161.7 million. If approved, the water bill for the average residential customer using 5,640 gallons per month would increase about $11.30 per month; the average monthly residential wastewater bill would increase about $6.16 per month. 

Additionally, NJ Natural Gas filed a $482.4 million proposal with the NJBPU Dec. 1 for the next generation of its Savegreen program. The initiative helps residential and commercial customers lower their energy usage, save money and reduce their carbon footprint.

NJNG serves more than a half a million customers in Monmouth, Ocean, Morris, Middlesex and Burlington counties.