New Jersey Natural Gas Announces 4.3 Percent Decrease for Residential
Heating Customers This Winter
Annual Filing To Go Into Effect October 2014 Pending Regulatory Approval
WALL, N.J. -- June 2, 2014
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
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
*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
*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
For more information about NJR:
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New Jersey Resources
Michael Kinney, 732-938-1031
Joanne Fairechio, 732-378-4967
Dennis Puma, 732-938-1229
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