New Jersey Natural Gas
NJNG ANNOUNCES AGREEMENTS TO BUILD THREE PUBLIC COMPRESSED NATURAL GAS FUELING STATIONS04/25/2013 - For Immediate Release
(Wall, NJ) - New Jersey Natural Gas (NJNG) announced today that it has entered into agreements with three host facilities, and will spend between $6 million and $8 million to build the first public compressed natural gas (CNG) fueling stations in Monmouth and Ocean counties. Under the agreements, NJNG will install, own and maintain the CNG infrastructure, and each host facility will be required to initially use at least 20 percent of the fueling capacity and make the stations open to the public. This investment will help stimulate New Jersey’s market for CNG vehicles, while also providing economic and environmental benefits. NJNG will earn an immediate overall return of 7.1 percent, including a 10.3 percent return on equity, on its investment.
The host sites will be located at Waste Management, Inc. of Toms River, Ocean County, and the Middletown Department of Public Works in Monmouth County. A third host site will be located at a beverage distribution company in Monmouth County. The specifications and design of the CNG fueling stations will be finalized within the next 90 days and all three stations will incorporate fast-fill fueling technology for the public. NJNG expects construction of the stations to be completed by the end of 2013.
“We appreciate the opportunity to partner with these host facilities to bring new CNG fueling options to businesses and customers throughout the state,” said Laurence M. Downes, Chairman and CEO of New Jersey Natural Gas. “With these new stations, we are helping to create jobs, reduce emissions and encourage greater energy independence, and that benefits us all.”
The construction of these CNG fueling stations is a part of NJNG’s pilot program, approved by the New Jersey Board of Public Utilities in June 2012, to increase accessibility to CNG fueling stations in the state. Through the pilot program, NJNG can invest up to $10 million to build up to five CNG fueling stations at host facilities throughout its service territory. This investment enables the host sites to benefit from CNG without the upfront costs of building a station, while realizing an accelerated payback on the incremental costs of acquiring CNG vehicles.
Currently, there are only five CNG fueling stations open to the public in New Jersey. The new CNG fueling stations will significantly enhance that number and provide greater access to a cost effective and environmentally cleaner choice of fuel. Compared to diesel and other petroleum-based fuels, CNG can reduce fuel costs between 30 and 40 percent. Additionally, CNG can dramatically reduce amounts of carbon monoxide, nitrous oxides and other greenhouse gas emissions that can be harmful to the environment. According to the American Gas Association, natural gas-powered vehicles produce up to 30 percent fewer greenhouse gas emissions than diesel.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJNG cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJNG’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. "Words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes,” “may,” “should,” “will” and similar expressions may identify forward-looking information and such forward-looking statements are made based upon management’s current expectations and beliefs as of this date concerning future developments and their potential effect upon NJNG. There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on NJNG will be those anticipated by management. Forward-looking information in this release includes, but is not limited to, certain statements regarding the amount and return on NJNG’s investment in CNG refueling stations, the timing of construction of the CNG refueling stations, and the impact on residential customer rates.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that provides safe and reliable natural gas and renewable energy services, including transportation, distribution and asset management. With annual revenues of $3 billion, NJR is comprised of five key businesses:
- New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains 7,000 miles of natural gas transportation and distribution infrastructure to serve approximately half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris and Middlesex counties.
- NJR Clean Energy Ventures is a renewable energy company that invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 42 megawatts, providing residential and commercial customers with low carbon solutions.
- NJR Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides customized energy solutions to its customers across North America.
- NJR Home Services is a provider of heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to nearly 135,000 residential homes and businesses throughout New Jersey.
- NJR Energy Holdings invests and maintains equity ownership in natural gas storage and transportation pipelines and serves companies from local distributors and producers to electric generators and wholesale marketers.
NJR and its more than 900 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.
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Michael Kinney, Media
Dennis Puma, Investors