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Wall, N.J. -- Natural gas is an economical energy source for heating, especially at a time when the U.S. Energy Information Administration (EIA) projects that “the average cost paid by households in the Northeast this winter for heating oil may be the highest ever … setting a new winter record,” more than double the projected cost of natural gas on a relative basis. Low natural gas prices, coupled with rich financial incentives offered through New Jersey Natural Gas (NJNG) and New Jersey’s Clean Energy Program™ (NJCEP), have increased the number of households converting to natural gas.

The EIA report comes on the heels of New Jersey’s Energy Master Plan (EMP) draft, which is committed to expanding the state’s natural gas infrastructure and highlights that natural gas could lead to lower home heating costs for customers. In fact, one of the overarching goals of the EMP draft is to drive down the cost of energy for customers, and converting to natural gas is one such way to accomplish this. While the domestic supply of natural gas has kept its long-term price favorable to other fuels, generally, heating oil prices are linked to fluctuating crude oil prices. Moreover, electric prices in New Jersey are among the Country’s highest and propane prices continue to increase, further supporting the benefits of converting to natural gas.

The typical household in the Northeast can expect to pay 10 percent more this winter for heating oil compared with last winter -- higher than any previous winter, according to the EIA. And this follows a forecasted slightly milder winter, which typically leads to lower consumption.

 “We are focused on creating and delivering value to our customers,” stresses Robert Gallo, marketing manager at New Jersey Natural Gas. Recognizing the potential long-term cost efficiencies of natural gas, more than 3,000 NJNG residential customers converted to natural gas from alternative fuel sources in the past 12 months alone.  Gallo estimates that fuel consumption expenditures were cut by more than 40 percent for NJNG residential customers who converted to natural gas from oil during the past 12 months. According to the EIA, New Jersey homeowners are currently paying -- on a per gallon equivalent -- $4.25 for home heating oil and $4.05 for propane.

Fuel cost savings coupled with high-efficiency rebates and incentives are available to help New Jersey residents offset the cost of converting to energy-efficient natural gas equipment, with programs expiring December 31, 2011, Gallo stresses. Specifically, NJNG’s The SAVEGREEN Project® offers residential customers an enhanced rebate of $900 for the purchase of a qualified heating system while NJCEP provides a $300 rebate under the WARMAdvantage program. Customers may also benefit from NJNG’s 0% APR On-Bill Repayment Program for 10 years on the approved costs of eligible Home Performance with ENERGY STAR® energy-efficiency home improvements. There are no fees, no closing costs and no prepayment penalties. For example, on a $10,000 repayment with an APR of 0%, a customer would make monthly payments of $83.34 for a term of 10 years and one final payment of $82.54.

High-efficiency natural gas furnaces and boilers provide more useable heat at a lower cost than competing heating sources. Moreover, natural gas equipment is extremely efficient, highly dependable and easy to maintain compared to oil-fired equipment, which requires considerable maintenance with decreased efficiency overtime. By converting to natural gas, homeowners reduce or eliminate the liability associated with oil leaks, do not need to rely on oil deliveries and do not require special insurance – all while benefitting from potential cost-savings and energy-efficiency opportunities. Natural gas is abundant, economical, convenient, safe and clean; given the abundant domestic supply, homeowners can anticipate saving money now and over the long term.

For information on converting to natural gas and available energy conservation and financial incentives, contact 732-938-7224 or conversions@njng.com. 

About New Jersey Natural Gas
New Jersey Natural Gas is the principal subsidiary of New Jersey Resources, a Fortune 1000 company, that provides safe and reliable natural gas and renewable energy services, including transportation, distribution and asset management in states from the Gulf Coast to the New England regions, including the Mid-Continent region, the West Coast and Canada, while investing in and maintaining an extensive infrastructure to support future growth. With $3 billion in annual revenues, NJR safely and reliably operates and maintains 6,800 miles of natural gas transportation and distribution infrastructure to serve nearly half a million customers; develops and manages a diverse portfolio of 1.55 Bcf/day of firm transportation and over 59.4 Bcf of firm storage capacity; offers low carbon, clean energy solutions through its commercial and residential solar programs and provides appliance installation, repair and contract service to nearly 150,000 homes and businesses. Additionally, NJR holds investments in midstream assets through equity partnerships including Steckman Ridge and Iroquois. Through Conserve to Preserve®, NJR is helping customers save energy and money by promoting conservation and encouraging efficiency. For more information about NJR, visit www.njresources.com.