New Jersey Natural Gas (NJNG) has received approval from the New Jersey Board of Public Utilities for a $157 million increase to its base rates. This increase is intended to recover costs associated with the company’s infrastructure investments, system enhancements, and overall business operations.
The settlement reflects a rate base of $3.25 billion, representing an increase in revenue requirement of $157 million. The overall rate of return is 7.08%, which includes a return on equity of 9.6% with a 54% equity ratio, along with a composite depreciation rate of 3.21%.
NJNG's infrastructure investments have significantly enhanced the reliability of its delivery system, with specific efforts such as looping and reinforcement projects, the replacement of 140 miles of vintage distribution mains and associated services, and the modernization of customer service and dispatch operations, along with cybersecurity enhancements.
Notably, NJNG's system is now one of the most environmentally sound in the state of New Jersey, measured by the fewest leaks per mile of any natural gas utility in the state. Additionally, the company's investments position it to deliver the next generation of lower and zero carbon fuels, such as clean hydrogen and renewable natural gas, contributing to a cleaner energy future for New Jersey.
It's also worth mentioning that energy assistance is available for customers struggling to pay their natural gas bill, and NJNG offers energy-efficiency rebates and financing options for high-efficiency equipment through its SaveGreen program.
Today the company's shares have moved 2.2% to a price of $49.86. If you want to know more, read the company's complete 8-K report here.
