Trenton, New Jersey. Under a settlement reached Thursday by the state Board of Public Utilities, New Jersey Natural Gas customers would see a 15.7% increase in their monthly heating costs, reducing an earlier request for a more drastic jump of over 24%.
The Wall, New Jersey-based utility is able to recoup $850 million that it has spent on system upgrades since 2021 thanks to the rate increase. The delivery rate is increased as a result of the agreement with the state Division of Rate Counsel and regulators. This increase funds the utility’s operations, infrastructure improvements, and profit margins.
Bills for residential users using 100 therms of natural gas per month will increase by $23.94 from $151.62 to $175.56. It is anticipated that the adjustment, which takes effect immediately, will increase the company’s yearly income by $157 million.
The company’s president and CEO, Steve Westhoven, said in a statement that the settlement is fair and reasonable, acknowledging the value of the $850 million that New Jersey Natural Gas has invested in its system and operations since 2021.
This is the utility’s first base rate rise since 2021, when regulators rejected a larger original proposal and an 11.3% increase was permitted by a prior settlement.
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!
