NJR 8-K
New Jersey Resources Corp (NJR)
8-K
2024-01-31
For: 2024-01-31
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 31, 2024
(Exact Name of registrant as specified in its charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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(732 ) 938-1480
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on
which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 |
Regulation FD Disclosure.
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Today, New Jersey Natural Gas Company (“NJNG”) issued a press release announcing it filed a base rate case with the New Jersey Board of Public Utilities on January 31,
2024, (the “Press Release”) and published an investor fact sheet summarizing the base rate case filing (the “Investor Fact Sheet”). A copy of the Press Release and Investor Fact Sheet are attached hereto as Exhibit 99.1 and Exhibit 99.2,
respectively.
The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for the
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to
the Securities Act of 1933, as amended.
| Item 9.01 |
Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit Number
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Exhibit
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Press Release dated January 31, 2024 (furnished, not filed)
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Investor Fact Sheet (furnished, not filed)
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104
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Cover page in Inline XBRL format
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| NEW JERSEY RESOURCES CORPORATION | ||
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Date: January 31, 2024
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By:
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/s/ Roberto F. Bel
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Roberto F. Bel
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Senior Vice President and Chief Financial
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Officer
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Exhibit 99.1
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH
THE NEW JERSEY BOARD OF PUBLIC UTILITIES
WALL, N.J., January 31, 2024 – New Jersey Natural
Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), filed a petition with the New Jersey Board of Public Utilities (BPU) requesting an increase of $222.6 million to its base rates. The filing includes the recognition of
approximately $850 million of investment by NJNG to enhance the safety, reliability, security and environmental benefits of its delivery system and operations. These investments benefit customers but are not reflected in current rates.
“Our top priority is to safely and reliably deliver the energy our customers count on to heat their homes and run their businesses,” said Steve Westhoven, President and
CEO of New Jersey Natural Gas. “The investments we make in our infrastructure reflect this commitment and the critical role our system plays in reaching New Jersey’s carbon reduction goals. We look forward to working with our regulators to achieve
a successful resolution of this filing that is reasonable and fair for our customers and our company.”
NJNG maintains infrastructure and operations throughout New Jersey that serve approximately 576,000 customers who depend on natural gas for heating and other essential
needs. As a lifeline service provider, the company is committed to continually improving its operations and enhancing the safety and reliability of its distribution network, including the repair, replacement and modernization of its system. This
includes:
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Upgrades to critical infrastructure, including looping and reinforcement projects, and the replacement of 140 miles of vintage distribution mains and associated service lines to ensure the safety, reliability and integrity of its delivery systems and support mandates set forth in state and
federal regulation.
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Modernization and enhancement of Customer Service and Dispatch operations to improve the customer experience and ensure efficient and effective response times and service calls.
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Investment in cybersecurity consistent with industry standards to safeguard customer information, as well as support the safe and reliable operations of NJNG’s systems.
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Increased labor costs, including the ratification of a new three-year union agreement, that support adequate staffing to effectively meet our customers energy needs.
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NJNG’s consistent infrastructure investments – a priority for the company – have made its system one of the most environmentally sound in the state as measured by the
fewest leaks per mile of any natural gas utility in New Jersey. These investments also position NJNG’s critical assets to deliver the next generation of lower and zero carbon fuels, like clean hydrogen and renewable natural gas, and play a key role
in achieving a cleaner energy future for New Jersey.
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH THE NEW JERSEY BOARD OF PUBLIC UTILITIES
Page 2 of 3
The proposed rate adjustment is necessary to ensure the responsible operation of NJNG’s business and recover costs associated with these critical infrastructure
investments. Historically, the BPU’s review could take between nine and 12 months. If approved as filed, the change for the typical NJNG residential heating customer using 81 therms a month will be an increase of $29.01.
Natural gas bills consist of two main parts. The first part is the delivery charge, which includes base rates. The second is the Basic Gas Supply Service (BGSS), which
covers the cost of purchasing natural gas. The delivery charge covers the cost of providing safe, reliable natural gas service to customers and maintaining operations and delivery systems. The ability to earn a fair return on these capital
investments helps NJNG continue to maintain a safe and reliable distribution system. The BGSS portion of the bill is updated annually to reflect current market prices and is passed through to customers. NJNG does not profit from the sale of the
natural gas commodity.
Any customer having difficulty paying their natural gas bill should visit
njng.com/energyassistance to learn about available energy assistance programs.
Energy assistance is available for income-eligible customers through the Low-Income Home Energy Assistance Program (LIHEAP), Universal Service Fund (USF) and Payment Assistance for Gas and Electric (PAGE) Program, NJ SHARES and NJNG’s own Gift of Warmth program.
FORWARD-LOOKING STATEMENTS:
This press release contains 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 base rate case and investment programs, our employee growth, cybersecurity investments, maintenance, and modernization of our System and our emissions reduction goals.
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH THE NEW JERSEY BOARD OF PUBLIC UTILITIES
Page 3 of 3
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
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:
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New Jersey Natural Gas, NJR’s principal subsidiary, operates
and maintains natural gas transportation and distribution infrastructure to serve nearly 576,000 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
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Clean Energy Ventures invests in, owns and operates solar
projects with a total capacity of approximately 469 megawatts, providing residential and commercial customers with low-carbon solutions.
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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.
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Storage and Transportation 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, as well as our 50% equity ownership in the Steckman Ridge natural gas storage
facility.
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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.
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NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to
Preserve® and initiatives such as SAVEGREEN™ and The Sunlight Advantage®.
For more information about NJR:
www.njresources.com
Follow us on X (formerly Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
# # #
Exhibit 99.2
NJR CONTACT:
Adam Prior
Director, Investor Relations
Office Phone: 732-938-1145
www.njresources.com
1415 Wyckoff Road Wall, NJ 07719
January 31, 2024
NEW JERSEY NATURAL GAS COMPANY
2024 BASE RATE CASE FILING SUMMARY
OVERVIEW
Today, New Jersey Natural Gas Company (NJNG), a subsidiary of New Jersey Resources (NYSE:NJR) filed a base rate case with the New Jersey Board of
Public Utilities (BPU). NJNG is seeking a $222.6 million increase in its delivery rates based on a return on rate base of 7.57 percent and a return on equity of 10.42 percent. The proposed increase reflects a 55.42 percent common equity component.
THE NEED FOR A BASE RATE CASE
Since the conclusion of its last base rate case in 2021, NJNG has invested approximately $850 million to upgrade and enhance the safety and
reliability of its transmission and distribution systems as well as IT investments.
Calculating Revenue Requirement
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Rate Base
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$
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3,358.7
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Rate of Return
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7.57
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%
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Operating Income Requirement
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$
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254.3
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Pro-Forma Operating Income
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$
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95.6
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Operating Income Deficiency
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$
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158.7
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Revenue Factor*
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1.4027
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Revenue Requirements
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$
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222.6
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Revenue Factor means a gross-up to account for income taxes (9% NJ corporate income tax and 21% federal income tax) and other expenses, including uncollectibles, BPU assessment, and Division of
Rate Counsel assessment.
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Calculating Rate Base
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Plant in Service
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$
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4,139.9
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Accumulated Depreciation Reserve
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$
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(675.3
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Customer Advances
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$
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(2.6
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Net Plant in Service
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$
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3,462.1
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Gas Supply & LNG Inventory
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$
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107.7
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Working Capital
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$
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163.9
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Deferred Taxes
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$
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(240.4
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Excess Deferred Tax
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$
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(126.9
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Consolidated Tax Adjustment
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$
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(7.6
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)
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Total Rate Base
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$
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3,358.7
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Overall Cost of Capital and Rate of Return
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($ millions)
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Amount
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Percent
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Embedded
Cost
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Weighted
Cost
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Long-Term Debt
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$
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1,573.2
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44.58
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%
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4.03
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%
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1.80
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%
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Common Equity
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1,955.7
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55.42
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%
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10.42
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%
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5.77
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%
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Total
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$
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3,528.9
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100.00
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%
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7.57
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%
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THE BASE RATE CASE PROCESS IN NEW JERSEY
Base rate cases in New Jersey are a judicial proceeding, with the burden on the public utility to prove that its request is justified. The test year period for
measuring income at current rates is July 1, 2023 through June 30, 2024. The test year, after any adjustments proposed by NJNG, should reflect as closely as possible the conditions NJNG will face when the rates being established will be in effect.
Adjustments to the test period are intended to normalize the actual costs and also reflect known and measurable changes anticipated to occur. NJNG expects that this request will be thoroughly reviewed and tested. Only after the review process is
concluded, will the BPU issue a decision.
As illustrated in the estimated timeline below, a rate case, by statute, in New Jersey is a nine-month process from the filing date to completion;
however, 10-12 months is not unusual.
2
WHAT TO EXPECT
Recent history in New Jersey through base rate cases and other programs suggest the BPU recognizes the importance of strong public utilities,
balanced with a realistic view of overall weighted capital costs. The table below shows recent base rate case decisions for other public utilities in the state.
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Recent Base Rate Cases
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Company
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Filing Date
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Settlement Date
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Overall
Weighted
Cost of
Capital |
Return on
Equity
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Equity Ratio
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PSE&G
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December 2023
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Pending
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7.55%*
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10.4%*
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55.5%*
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JCP&L
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March 2023
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Pending
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7.6%*
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10.4%*
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51.9%*
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Atlantic City
Electric
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February 2023
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November 2023
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6.68%
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9.60%
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50.2%
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South Jersey Gas
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April 2022
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December 2022
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6.93%
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9.60%
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54.0%
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Elizabethtown Gas
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December 2021
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August 2022
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6.83%
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9.60%
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52.0%
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Rockland Electric
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May 2021
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December 2021
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7.08%
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9.60%
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48.51%
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* As filed
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FORWARD-LOOKING STATEMENTS:
This investor fact sheet contains 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 investor fact sheet include, but are not limited to, certain statements NJNG’s base rate case and
investment programs.
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 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 investor fact sheet 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.
3
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 natural gas transportation and distribution infrastructure to serve approximately 576,000 customers
in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties.
|
| • |
Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 469 megawatts, providing commercial customers with low-carbon
solutions.
|
| • |
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.
|
| • |
Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the
Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
|
| • |
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 over 1,300 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.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas
4