NJNG Seeks Recovery of Reliability Investments While Delivering Customer Savings
New Jersey Natural Gas (NJNG), the primary subsidiary of New Jersey Resources, has submitted a series of regulatory filings to the New Jersey Board of Public Utilities (NJBPU) designed to provide substantial customer savings ahead of the upcoming winter heating season while also seeking approval to recover investments made to strengthen the company’s natural gas distribution system.
According to the company, the combined filings are expected to reduce customer bills by approximately 8.9% beginning before the 2026–2027 winter season. For the average residential customer, the reduction translates into annual savings of about $158. NJNG said the strategy has been structured to provide immediate financial relief to customers while ensuring continued investment in the infrastructure and operational systems necessary to maintain reliable natural gas service across its territory.
The utility emphasized that once all proposed adjustments are implemented, including both the customer savings initiatives and the eventual recovery of infrastructure investments, overall customer rates are expected to remain nearly unchanged compared with current levels.
Balancing Affordability and Reliability
The filings reflect NJNG’s effort to balance affordability for consumers with the long-term need to maintain and modernize its natural gas network. Company leadership noted that the utility has worked proactively to manage fuel costs and improve operational resilience, particularly after a winter season marked by unusually cold temperatures and elevated energy demand.
Steve Westhoven, President and Chief Executive Officer of New Jersey Natural Gas, said the company’s management of its natural gas supply portfolio has positioned it to pass meaningful savings on to customers.
He explained that strategic planning and procurement efforts enabled NJNG to secure natural gas supplies at favorable prices, helping reduce costs ahead of the coming heating season. At the same time, investments in infrastructure resiliency have strengthened the system’s ability to deliver uninterrupted service during periods of severe weather and peak demand.
The company highlighted that maintaining reliable service during extreme winter conditions remains one of its primary responsibilities, making continued infrastructure investment a critical component of its long-term strategy.
Multiple Filings Submitted Together
The submissions made to the NJBPU include several key regulatory requests:
- NJNG’s annual Basic Gas Supply Service (BGSS) filing.
- A Conservation Incentive Program (CIP) filing.
- An Energy Efficiency filing.
- A base rate adjustment request aimed at recovering approximately $950 million invested in system improvements and operational enhancements.
NJNG stated that these filings were intentionally submitted together to maximize customer benefits and provide a coordinated approach to bill management.
The company estimates that customers will collectively save approximately $98 million over the year beginning October 1, 2026. For a typical residential household, that equates to around $158 in annual savings.
Additionally, the timing of the proposed base rate adjustment has been structured so that any approved increase would likely take effect near the end of the 2026–2027 winter heating season, when residential natural gas consumption typically begins to decline. This approach is intended to minimize the impact on customers during the months when heating needs and energy usage are at their highest.
Proposed Recovery of Infrastructure Investments
While customers would benefit from immediate bill reductions, NJNG is also requesting authorization to recover costs associated with nearly $950 million in investments made throughout its service territory.
If approved as filed, the recovery request would result in a 12.7% increase in base rates for an average residential heating customer using approximately 79 therms of natural gas per month.
Company officials stressed that the investments have already been made and are currently providing benefits to customers, but those costs have not yet been incorporated into existing rates.
Westhoven noted that combining the recovery request with significant customer savings initiatives allows the utility to provide meaningful winter bill reductions while helping maintain long-term rate stability.
Investments Focused on Safety and Reliability
The investments covered under the filing primarily involve improvements to NJNG’s extensive natural gas infrastructure network.
The utility operates and maintains approximately 7,500 miles of pipeline infrastructure serving roughly 600,000 residential, commercial and institutional customers throughout New Jersey. This network supports homes, businesses, hospitals, schools and other critical facilities that rely on natural gas for heating and operational needs.
A large portion of the proposed cost recovery is associated with projects designed to improve system safety, reliability and resilience.
Among the most significant initiatives are upgrades to transmission and distribution infrastructure, including looping and reinforcement projects that strengthen system redundancy and improve operational flexibility. The utility has also undertaken extensive replacement of aging trunklines, distribution mains and associated service lines to comply with state and federal regulatory requirements while improving overall network integrity.
These projects help reduce the risk of service interruptions, improve operational performance and enhance the system’s ability to respond to periods of peak demand or emergency conditions.
Jamesburg Replacement Project Enhances Resiliency
One of the major infrastructure projects included in the filing is the Jamesburg Replacement Project in Monmouth County.
The project consists of approximately six miles of transmission-scale pipeline infrastructure and was developed to eliminate a critical single point of failure within the regional natural gas network.
According to NJNG, the investment significantly improves service resiliency for more than 230,000 customers throughout Monmouth County by creating alternative pathways for natural gas delivery.
The company views the project as a key component of its broader strategy to strengthen network reliability and reduce potential vulnerabilities in the system.
Modernizing Technology and Cybersecurity
In addition to physical infrastructure upgrades, NJNG is seeking recovery for investments in technology modernization and cybersecurity.
Part of the funding relates to replacing an aging customer-facing technology platform that is being retired by its vendor. The new system is expected to improve customer service capabilities while supporting critical operational functions such as dispatching, engineering, field operations and emergency response management.
The utility said modern technology systems are increasingly essential to maintaining efficient operations and delivering timely support to customers.
Cybersecurity investments also form an important portion of the filing. As utility networks become more digitally connected, companies face growing threats from cyberattacks and data breaches.
NJNG stated that it has invested in cybersecurity measures aligned with industry standards to help protect customer information, employee data and operational systems from emerging threats.
These initiatives are intended to enhance both security and reliability while ensuring compliance with evolving regulatory and industry expectations.
Addressing Rising Operational Costs
The filing also reflects increased operating expenses resulting from inflationary pressures across the economy.
NJNG noted that rising labor costs, healthcare expenses and other operational expenditures have contributed to the need for a base rate adjustment. These costs support the utility’s workforce, including union employees who play a critical role in maintaining, operating and repairing the natural gas delivery system.
Company officials emphasized that a skilled workforce remains essential to providing safe and dependable service across the utility’s service area.
Regulatory Review Process Ahead
The filing marks the beginning of a comprehensive review process by the New Jersey Board of Public Utilities.
Base rate cases typically undergo extensive examination by regulators, consumer advocates and other stakeholders before a final decision is reached. NJNG indicated that the review process generally takes between nine and twelve months and often concludes with a negotiated settlement among participating parties.
Based on that timeline, any approved rate increase associated with the infrastructure investment recovery request would likely not take effect until the latter stages of the 2026–2027 winter season.
Because residential customers generally consume approximately 80% of their annual natural gas usage during the winter months, NJNG believes the proposed timing helps reduce the overall impact on customer bills.
The company maintains that the combination of near-term savings, strategic cost management and long-term infrastructure investment will enable it to continue providing safe, reliable and affordable natural gas service while keeping overall customer rates largely consistent with current levels.
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