BERKELEY – Local officials are representing their constituents in fighting against a proposed increase of 25% on New Jersey Natural Gas bills.
Recently, Mayor Carmen Amato and Ocean County Commissioner Joseph Vicari testified at a virtual public hearing in strong opposition of this increase in base rates.
“This is the third time in the last six years NJNG has sought an increase in their base rates,” Amato said during a recent Township Council meeting. “Six years ago they proposed a 24 percent increase in rates. Just three short years ago, they proposed another 19 percent increase in rates. To be back so soon for another large increase, is totally unacceptable.”
According to New Jersey Natural Gas, their proposed rate increase will raise an average monthly bill to $141.17, up $28.07, or 24.8%, for a typical customer who uses 100 therms a month. If this increase is allowed by the Board of Public Utilities, that would amount to an approximate increase of $336.84 a year.
“This proposed increase is outrageous and unconscionable! Our seniors on fixed incomes and our hard working families deserve better,” Amato said.
The NJ Board of Public Utilities has to approve it in order for the increase to go through. Generally speaking, a utility company puts in for a large increase and the BPU settles for a smaller increase.
According to NJNG, the petition for the increase was filed in March, requesting an increase of approximately $165.7 million to its base rates.
Since the last time they asked for an increase, NJNG said it has invested nearly $850 million in improvements that are helping customers but are not reflected in the current rate.
“Nothing is more important to our company than safely and reliably delivering the energy our customers depend on for their homes and businesses,” said Steve Westhoven, President and CEO of New Jersey Resources. “We are dedicated to meeting that commitment in a sustainable, responsible way. The investments we’ve made in our system, as reflected in this filing, deliver on that commitment.”
The proposed rate adjustment is meant to cover a number of improvements, including ongoing infrastructure replacement. A green hydrogen fuel project was developed to reduce emissions. Also, a training facility was built to train operators and provide mandatory qualifications for staff. Safety and field simulations are part of that process, which also trains third party contractors and local emergency personnel.
Included in this increase is rate recovery for the Southern Reliability Link. More than 85% of the natural gas supply used to serve customers in Monmouth, Ocean and Burlington counties is delivered through a single feed at the northern end of NJNG’s system, a utility spokesman said. Any significant supply disruption on this line could negatively impact a majority of NJNG’s nearly 560,000 customers. SRL directly mitigates this risk by accessing a second interstate supply source that interconnects with the southern end of NJNG’s system.
This was a controversial pipeline that some local officials and environmentalists fought against. They were concerned about leaks, construction through protected areas, and the eventual cost that would come back to residents in the form of rate increases.
“We take our responsibility to deliver exceptional service at a reasonable rate seriously. This is achieved through a rigorous approval process with regulators,” Westhoven said. “We look forward to a successful resolution of this petition that is in the best interest of our customers and our company.”
Any customer having difficulty paying their natural gas bill is encouraged to visit njng.com/energyassistance to learn about assistance programs.
