New Jersey Natural Gas (NJNG), the regulated subsidiary of New Jersey Resources, submitted its annual Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) filing to the New Jersey Board of Public Utilities (BPU). The company is seeking a 2.1% increase due to higher commodity costs and demand charges.
The BGSS represents the cost of the commodity that is passed through to customers. Any change to this rate does not result in a change in profits to the company.
“New Jersey Natural Gas is committed to providing our customers with safe, reliable natural gas service in the most cost-effective manner,” said Steve Westhoven, president and CEO of New Jersey Natural Gas. “We actively work to optimize our natural gas purchasing strategies to manage the effect of higher natural gas costs and minimize the impact on our customers.”
NJNG continues to monitor market conditions and look for opportunities to lower costs and benefit its customers. In December and January of this past winter heating season, NJNG provided residential and small commercial customers with bill credits totaling $20.6 million due to lower wholesale natural gas prices. These bill credits helped reduce the typical residential heat customer’s annual bill by approximately 3.6% or about $41.
The proposed adjustment to the BGSS would be offset in part by a slight decrease to its CIP recovery rate. The net effect is an increase of 2.1%, or $24.20, for the typical residential heating customer using 1000 therms annually.
In its filing, NJNG is seeking an increase of 0.5% related to its BGSS rate and a 1.9 % increase related to its Balancing Charge. The BGSS and Balancing Charge recover the cost of natural gas supply used to serve its customers and balance deliveries with customer usage. NJNG also requested a 0.3% decrease related to its CIP, which is designed to help normalize year-to-year fluctuation from changing weather and usage patterns on both customers’ bills and NJNG’s financial margins.
Pending BPU approval, NJNG’s proposed BGSS and CIP rate changes would take effect October 1, 2021.
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