New Jersey Natural Gas
BPU APPROVES NJNG’S ENERGY-EFFICIENCY PROGRAM TO HELP STRENGTHEN NEW JERSEY’S ENVIRONMENT AND ECONOMY
07/01/2009 - For Immediate ReleaseThe approved programs will provide additional incentives to qualified residential customers participating in the Home Performance with ENERGY STAR® (HPES) program; enhance the current WARMAdvantage program by providing home energy audits and additional rebates; and expand the commercial Direct Install Program by funding additional participants. These programs will play a critical role in helping New Jersey reach its energy-efficiency goals while infusing capital to stimulate the economy and support job growth in the state.
“Two of the most challenging issues facing our state and nation are the economy and the environment,” said Laurence M. Downes, chairman and CEO of NJNG. “Under the leadership of Governor Corzine and the state’s utility regulators, today’s approval demonstrates New Jersey’s commitment to taking the bold steps necessary to address both these issues. That’s good news for our state and our customers. With these new programs in place, there is no better time to upgrade to high-efficiency equipment.”
NJNG will offer residential customers enhanced rebates of $900 for qualified heating equipment through the WARMAdvantage Program. This is in addition to the $300 incentive already offered by NJCEP, which brings the total rebate to $1,200. The added rebate will be in conjunction with a customer participating in a HPES audit. Customers can access additional incentives for further energy-efficiency improvements identified and made as a result of the audit.
NJNG’s Home Performance with ENERGY STAR Enhancement Program will offer zero percent financing to assist residential customers implementing HPES audit recommendations. The financing option will be offered through an independent third-party. Customers can finance their share of improvements at zero percent in combination with the rebates that range from 10 to 50 percent of the cost of improvements. The limit on the incentives had been $5,000, but the BPU recently approved an expansion of that limit to $10,000, which will take effect later this year.
NJNG will also support increased participation in the new NJCEP Direct Install Program by funding the cost of the incentives for an additional 50 eligible commercial customers. The Direct Install program will target small commercial customers with an average annual kilowatt (kW) demand of 200 kW or less. The incentive amount available through this program will be consistent with the level approved for NJCEP Direct Install.
In total, these programs, which were developed collaboratively with the state’s regulators, will create new jobs at NJNG and provide an infusion of capital that will help support job growth at the local contractor level. They also have the potential to reduce carbon dioxide emissions by more than 15 million pounds annually, helping to meet the state’s goal of reducing greenhouse gas emissions 20 percent by 2020.
The program will run for one year from implementation, which is anticipated to occur in September. The program’s cost of $21 million, if fully subscribed, will be recovered through a new Energy-Efficiency Rider. Assuming full participation, the anticipated impact for the typical residential heat customer using 1,000 therms annually will be approximately 0.5 percent, or $8.28 a year, recovered over a 4-year period.
NJNG customers should look for information about these programs on the company’s Web site, www.njng.com, and in the monthly customer newsletter over the coming months. Additionally, customers are encouraged to sign up for NJNG’s free E-Tips service, which delivers information about the most up-to-date energy-saving tips and programs via e-mail each month.
NJNG, today, also submitted its annual Universal Service Fund (USF) filing seeking a reduction of 0.5 percent for the typical residential heating customer using 1,000 therms annually. The proposed rate has been jointly agreed to by the state’s electric and natural gas utilities and is based upon an assessment of the past usage and projected needs. The USF is a statewide program that provides assistance to customers based on household income and energy costs. If accepted by the BPU, this decrease will help offset the increase associated with the recently approved energy-efficiency programs.
New Jersey Natural Gas (NJNG) is the principal subsidiary of New Jersey Resources (NYSE: NJR), a Fortune 1000 company. NJNG serves more than 486,000 customers in New Jersey’s Monmouth, Ocean, Middlesex and Morris counties. This service area’s demographics and quality of life contribute greatly to NJNG’s growth. NJNG’s progress is a tribute to the dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make the company a leader in the competitive energy marketplace. For more information, visit NJNG’s Web site at www.njng.com.
Contact:
Michael Kinney, Media
732-938-1031
Dennis Puma, Investors
732-938-1229
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