New Jersey Natural Gas Receives Approval for its Infrastructure Investment Program

New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), received approval from the New Jersey Board of Public Utilities to invest $150 million over five years on a series of infrastructure projects designed to support the enhanced safety and reliability of its natural gas distribution system.

“As a regulated utility and lifeline service provider, we have a responsibility to provide safe and reliable service. The Board of Public Utilities’ approval today reflects that commitment,” said Steve Westhoven, President and CEO of New Jersey Natural Gas. “Through our Infrastructure Investment Program, we will continue making critical investments to strengthen our world-class delivery system and provide the essential service our customers depend on.”

Originally filed in February 2019, the Infrastructure Investment Program (IIP) consists of a series of 24 natural gas transmission and distribution replacement and enhancement projects, including looping reinforcements, trunk line system upgrades and a regulatory station reconstruction. Other projects include the installation of 47,500 protective devices on regulator vents in flood prone areas, and approximately 8,000 excess flow valves, which automatically restrict the flow of natural gas if a service line is broken. Each of these projects will help further strengthen NJNG’s delivery system and enhance safety, reliability and resiliency

NJNG voluntarily withdrew the information technology (IT) upgrade component of its original filing, and will seek to recover associated costs in a future proceeding. NJNG’s existing IT system was installed between 1994 and 1997 and will no longer have extended support after April 2025. The IT upgrade will update and improve NJNG’s billing, customer service, asset management, work order and accounting systems, as well as strengthen its cybersecurity program.

A typical residential heating customer using 1,000 therms per year could see a cumulative bill impact of 2.4 percent or a total of $28 over the five-year program. Beginning in 2021, NJNG will make annual filings to the BPU to recover the cost for its investments placed in service over the five-year program.

Additionally, NJNG will file a base rate case no later than five years after the implementation of the IIP.

Forward-Looking Statements

Certain statements within this release are 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 Infrastructure Investment Program, IT upgrade, future rate cases and filings and any impact on residential heating customers’ bills.