New Jersey Natural Gas
NEW JERSEY NATURAL GAS ANNOUNCES 4.3 PERCENT DECREASE FOR RESIDENTIAL HEATING CUSTOMERS THIS WINTER06/02/2014 - For Immediate Release
WALL, N.J. – New Jersey Natural Gas (NJNG) today submitted its annual Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) filing with the New Jersey Board of Public Utilities (BPU) that would result in decreases to the CIP rates for residential and commercial customers this winter. The typical residential heating customers’ bill would decrease by 4.3 percent. Using 100 therms a month, they would see their bill go from $109.80 to $105.08, a savings of $4.72. On an annual basis, customers using 1,000 therms a year would see their bill go from $1,114.50 to $1,067.30, a savings of $47.20.
Residential non-heating, small commercial and large commercial customers would also see a decrease in their bills of 2.8 percent, 3.8 percent and 2.1 percent, respectively. Each class of customer has its own CIP baseline usage. Actual usage is compared to the baseline to determine rate adjustments. Any change to NJNG’s CIP rate requires BPU approval. If approved, the decreases would go into effect October 1, 2014.
“This past winter’s extreme weather provided its fair share of challenges - from the prolonged cold, to the 20 storms that blanketed our state in snow, to record peak demand days – but it also provided us with the opportunity to file a 4.3 percent savings for customers,” said Laurence M. Downes, chairman and CEO of NJNG. “Thanks to our team of exceptional employees, we continue to meet our customers’ expectations, providing safe, reliable service at an affordable price.”
The proposed reduction reflects an adjustment to lower NJNG’s CIP rate to account for the colder-than-normal weather experienced last winter. The CIP is designed to promote conservation and energy-efficiency practices, while normalizing year-to-year fluctuations from changing weather and usage patterns on both NJNG’s financial margins and customers’ bills. Weather for October 2013 through April 2014 was 11.3 percent colder than normal and January through March – the height of the winter heating season – was 17.5 percent colder than normal.
Accordingly, customers used more natural gas, resulting in CIP margin credit. Such adjustments are included in NJNG’s delivery rate, which represents the cost of delivering natural gas service to homes and businesses. Since its inception in 2006, CIP has helped NJNG customers realize cost savings of $299 million by reducing their usage.
Under NJNG’s filing, the BGSS rate will remain at its current level, which was reduced last December, resulting in a 6 percent decrease for the typical customer. The BGSS filing represents the commodity charge passed through to customers based on the company’s cost to acquire natural gas. This portion accounts for approximately 50 percent of a customer’s bill. Since its peak in 2005, NJNG’s BGSS price has declined significantly. For the average residential heating customers, the BGSS portion of their monthly bill is $72 less today than it was in 2005. Overall, this represents a decrease of 40 percent to their total bill. Any change in the BGSS does not represent a change in profits to the company.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that provides safe and reliable natural gas and clean energy services, including transportation, distribution and asset management. With annual revenues in excess of $2 billion, NJR is comprised of five key businesses:
- New Jersey Natural Gas is NJR’s principal subsidiary that operates and maintains 7,000 miles of natural gas transportation and distribution infrastructure to serve half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris and Middlesex counties.
- NJR Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 62 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 physical natural gas services and customized energy solutions to its customers across North America.
- NJR Midstream serves customers from local distributors and producers to electric generators and wholesale marketers through its equity ownership in a natural gas storage facility and a transportation pipeline, both of which are Federal Energy Regulatory Commission, or FERC-regulated investments.
- NJR Home Services provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes and businesses throughout New Jersey and serves approximately 120,000 service contract customers.
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
Joanne Fairechio, Investors
Dennis Puma, Investors