Capital Investment Projects to Promote Safety and Reliability Through Facility Enhancements
WALL, N.J.–(BUSINESS WIRE)–New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), received approval from the New Jersey Board of Public Utilities to invest $150 million over five years on a series of infrastructure projects designed to support the enhanced safety and reliability of its natural gas distribution system.
“As a regulated utility and lifeline service provider, we have a responsibility to provide safe and reliable service. The Board of Public Utilities’ approval today reflects that commitment,” said Steve Westhoven, President and CEO of New Jersey Natural Gas. “Through our Infrastructure Investment Program, we will continue making critical investments to strengthen our world-class delivery system and provide the essential service our customers depend on.”
Originally filed in February 2019, the Infrastructure Investment Program (IIP) consists of a series of 24 natural gas transmission and distribution replacement and enhancement projects, including looping reinforcements, trunk line system upgrades and a regulatory station reconstruction. Other projects include the installation of 47,500 protective devices on regulator vents in flood prone areas, and approximately 8,000 excess flow valves, which automatically restrict the flow of natural gas if a service line is broken. Each of these projects will help further strengthen NJNG’s delivery system and enhance safety, reliability and resiliency
NJNG voluntarily withdrew the information technology (IT) upgrade component of its original filing, and will seek to recover associated costs in a future proceeding. NJNG’s existing IT system was installed between 1994 and 1997 and will no longer have extended support after April 2025. The IT upgrade will update and improve NJNG’s billing, customer service, asset management, work order and accounting systems, as well as strengthen its cybersecurity program.
A typical residential heating customer using 1,000 therms per year could see a cumulative bill impact of 2.4 percent or a total of $28 over the five-year program. Beginning in 2021, NJNG will make annual filings to the BPU to recover the cost for its investments placed in service over the five-year program.
Additionally, NJNG will file a base rate case no later than five years after the implementation of the IIP.
Forward-Looking Statements
Certain statements within this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this release include, but are not limited to, certain statements regarding NJNG’s Infrastructure Investment Program, IT upgrade, future rate cases and filings and any impact on residential heating customers’ bills.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the U.S. Securities and Exchange Commission (SEC), including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR’s results of operations and financial condition in connection with its preparation of management’s discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
- New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex and Burlington counties.
- NJR Clean Energy Venturesinvests in, owns and operates solar projects with a total capacity of more than 350 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 ownership of Leaf River Energy Center and the Adelphia Gateway Pipeline Project, as well as our 50 percent equity ownership in the Steckman Ridge natural gas storage facility, and our 20 percent equity interest in the PennEast Pipeline Project.
- NJR Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.
NJR and its more than 1,100 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®. For more information about NJR: www.njresources.com.
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Contacts
Media:
Michael Kinney
732-938-1031
mkinney@njresources.com
Investor:
Dennis Puma
732-938-1229
dpuma@njresources.com
