NJ Board of Public Utilities approves new rates for NJNG

New Jersey Natural Gas received approval from the New Jersey Board of Public Utilities on the settlement of its base rate case resulting in a $157M increase to its base rates. NJNG requested the increase to recover costs associated with the company’s infrastructure investments, system enhancements and the overall operation of its business. “This is a reasonable, fair settlement that recognizes the value of the approximately $850 million of investments New Jersey Natural Gas has made in its operations and system since 2021,” said Steve Westhoven, President and CEO of New Jersey Natural Gas. “These investments have significantly enhanced the reliability of our delivery system and supported the critical operation of our lifeline utility service. We thank the Board of Public Utilities and the Division of Rate Counsel for their work in reaching an outcome that balances the interests of our customers and our company.” After a thorough review by regulators, the settlement reflects a rate base of $3.25B, an increase in revenue requirement of $157M, an overall rate of return of 7.08% (including a return on equity of 9.6% with a 54% equity ratio) and a composite depreciation rate of 3.21%.