New Jersey Natural Gas Co. (NJNG) said Thursday that it has filed with the New Jersey Board of Public Utilities (BPU) for an adjustment in the price of Basic Gas Supply Service (BGSS), which will raise its customer’s bills by 3%.

“We are committed to providing safe and reliable natural gas service at the best possible price,” said Laurence M. Downes, CEO of NJNG. “Through our natural gas purchasing strategies and supply portfolio management, we are able to offer our customers both affordability and a measure of protection from the effects of market volatility.”

NJNG requested the increase after calculating its gas costs projections for the upcoming year. The company said it expects to maintain its current standing as the low-cost provider among the state’s natural gas distribution companies. The company pointed out that over the course of the 2001-2002 winter, NJNG passed the savings from lower market prices along to customers resulting in a total price reduction of 15%. However, the company noted that since that time, the New York Mercantile Exchange (NYMEX) price for natural gas for this winter has increased approximately 30%.

NJNG pointed out that 75% of NJNG’s winter supply has already been purchased and its cost is below the current cost of NYMEX winter supplies. In addition, the company said it saves customers approximately 5% on their bills each year through sales of unused pipeline capacity and natural gas when not needed in the company’s core market.

If the BPU approves NJNG’s request, the price for a residential heating customer will increase from $0.8721 to $0.9002 per therm. The increase is expected to add about $2.81 to the monthly bill of an average customer using 100 therms per month, or $33.72 annually. If approved, the request would go into effect Dec. 1.

NJNG added that it has not filed for a traditional base rate increase for service delivery and other charges in almost 10 years, while continuing to make capital investments to meet the needs of system reliability and a growing customer base.

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