New Jersey Natural Gas announces 3.7% net increase to prices
NJNG also recently received BPU approval to decrease its energy-efficiency rate resulting in a 1.3 percent decrease to bills effective January 1, 2019.
The net effect of these changes will result in an overall increase of 3.7 percent. The typical residential heating customer using 100 therms a month will see their bill go from $96.57 to $101.40 effective February 1, 2019, an increase of $3.51.
This BGSS adjustment is a result of the increased cost of natural gas commodity prices, which are passed through directly to customers, and does not reflect an increase to NJNG’s profits.
Since the time of NJNG’s BGSS filing in May, the wholesale natural gas prices for the winter months of December 2018 through March 2019 have increased by as much as 44 percent.
The combination of colder weather in October and November 2018 and the potential for sustained cold weather this winter in a market with constrained access to supply and growing peak day demand are some of the factors contributing to the price surge. ■