0001206774-21-000893.txt : 20210330
0001206774-21-000893.hdr.sgml : 20210330
20210330101548
ACCESSION NUMBER: 0001206774-21-000893
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 16
CONFORMED PERIOD OF REPORT: 20210330
ITEM INFORMATION: Regulation FD Disclosure
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20210330
DATE AS OF CHANGE: 20210330
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: NEW JERSEY RESOURCES CORP
CENTRAL INDEX KEY: 0000356309
STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924]
IRS NUMBER: 222376465
STATE OF INCORPORATION: NJ
FISCAL YEAR END: 0930
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-08359
FILM NUMBER: 21784220
BUSINESS ADDRESS:
STREET 1: 1415 WYCKOFF RD
STREET 2: PO BOX 1468
CITY: WALL
STATE: NJ
ZIP: 07719
BUSINESS PHONE: 7329381000
MAIL ADDRESS:
STREET 1: 1415 WYCKOFF ROAD
STREET 2: P O BOX 1468
CITY: WALL
STATE: NJ
ZIP: 07719
8-K
1
njr3889731-8k.htm
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 30, 2021
NEW JERSEY RESOURCES CORPORATION (Exact Name of registrant as specified in its charter)
New Jersey
001-08359
22-2376465
(State or Other
(Commission
(IRS Employer
Jurisdiction
File Number)
Identification No.)
of Incorporation)
1415 Wyckoff Road
Wall, New Jersey
07719
(Address of Principal Executive Offices)
(Zip Code)
(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:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock - $2.50 par value
NJR
New York Stock Exchange
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.
On March 30, 2021, 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 (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 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.
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
Date: March 30, 2021
By:
/s/ Patrick J. Migliaccio
Patrick J. Migliaccio
Senior Vice President and Chief Financial
Officer
EX-99.1
2
njr3889731-ex991.htm
PRESS RELEASE DATED MARCH 30, 2021
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH THE NEW JERSEY BOARD OF PUBLIC UTILITIES
WALL, N.J., March 30, 2021 – New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), today filed a petition with the New Jersey Board of Public Utilities (BPU) requesting an increase of approximately $165.7 million to its base rates. Since its last base rate filing in 2019, NJNG has invested nearly $850 million in the safety, reliability and environmental benefits of its delivery system and operations. These investments are already at work benefiting customers, but are not currently reflected in rates.
“Nothing is more important to our company than safely and reliably delivering the energy our customers depend on for their homes and businesses,” said Steve Westhoven, President and CEO of New Jersey Resources. “We are dedicated to meeting that commitment in a sustainable, responsible way. The investments we’ve made in our system, as reflected in this filing, deliver on that commitment.”
The proposed rate adjustment is necessary to cover costs associated with infrastructure investments made by NJNG to maintain and enhance its natural gas delivery system and ensure the responsible operation of its business, including:
●
Investment in plant in service, including improvements to the overall integrity of its natural gas transmission and distribution systems.
●
Continued infrastructure replacement – an ongoing priority for NJNG that has made its system one of the most environmentally sound in New Jersey, as measured by leaks per mile.
●
Development of a green hydrogen fuel project to reduce NJNG’s emissions as part of its commitment to sustainability and a clean energy future.
●
Construction of a training facility to provide mandated operator qualification and safety- related training, including classroom and simulated field activities for NJNG employees and third-party contractors, as well as training opportunities for local emergency personnel.
As part of its filing, NJNG is also seeking rate recovery for the Southern Reliability Link (SRL). NJNG expects the 30-mile transmission pipeline project to be placed into service this fall. Approved by the BPU in 2016, the SRL provides a new natural gas feed into the southern end of NJNG’s service territory, significantly enhancing the reliability and resiliency of its distribution system.
Currently, more than 85% of the natural gas supply used to serve customers in Monmouth, Ocean and Burlington counties is delivered through a single feed at the northern end of NJNG’s system. Any significant supply disruption on this line could negatively impact a majority of NJNG’s nearly 560,000 customers. SRL directly mitigates this risk by accessing a second interstate supply source that interconnects with the southern end of NJNG’s system.
-more-
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH THE NEW JERSEY BOARD OF PUBLIC UTILITIES Page 2 of 3
Through this filing, NJNG is seeking to recover in rates appropriate costs for investments already made and expenses associated with operating its business, and to achieve a fair and reasonable outcome for ratepayers.
“We take our responsibility to deliver exceptional service at a reasonable rate seriously. This is achieved through a rigorous approval process with regulators,” Westhoven said. “We look forward to a successful resolution of this petition that is in the best interest of our customers and our company.”
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 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 the base rate case, future NJR capital expenditures and infrastructure investments and the ability to complete SRL.
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.
NEW JERSEY NATURAL GAS FILES BASE RATE CASE WITH THE NEW JERSEY BOARD OF PUBLIC UTILITIES Page 3 of 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 over 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex and Burlington counties.
●
NJR Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 357 megawatts, providing residential and commercial customers with low-carbon solutions.
●
NJR 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 & 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 Project, as well as our 50 percent equity ownership in the Steckman Ridge natural gas storage facility, and our 20 percent equity interest in the PennEast Pipeline Project.
●
NJR 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 nearly 1,200 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 Twitter @NJNaturalGas. “Like” us on facebook.com/NewJerseyNaturalGas.
DENNIS PUMA, DIRECTOR, INVESTOR RELATIONS & TREASURY OPERATIONS
732-938-1229
MARK AYDIN, MANAGER, INVESTOR RELATIONS
732-938-1228
March 30, 2021
NEW JERSEY NATURAL GAS COMPANY 2021 BASE RATE CASE FILING SUMMARY
OVERVIEW
Today, New Jersey Natural Gas Company (NJNG) filed a base rate case with the New Jersey Board of Public Utilities (BPU). NJNG is seeking a $165.67 million increase in its delivery rates based on a return on rate base of 7.53 percent and a return on equity of 10.5 percent. The proposed increase reflects a 56.89 percent common equity component.
THE NEED FOR A BASE RATE CASE
Since the conclusion of its last base rate case in 2019, NJNG has invested more than $850 million to upgrade and enhance the safety and reliability of its transmission and distribution systems, including the installation of its Southern Reliability Link (SRL) at a cost of $308 million. The SRL, a 30-mile transmission pipeline provides a new natural gas feed into the southern end of NJNG’s service territory, significantly enhancing the reliability and resiliency of its distribution system.
Calculating Revenue Requirement
Rate Base
$2,294.08
Rate of Return
7.53%
Operating Income Requirement
$172.67
Pro-Forma Operating Income
$54.72
Operating Income Deficiency
$117.94
Revenue Factor
1.4046
Revenue Requirements
$165.67
Calculating Rate Base
Plant in Service
$3,049.64
Accumulated Depreciation Reserve
($582.09)
Customer Advances
($2.65)
Net Plant in Service
$2,464.89
Gas Supply & LNG Inventory
$80.85
Working Capital
$167.79
Deferred Taxes
($280.99)
Excess Deferred Tax
($137.05)
Consolidated Tax Adjustment
($1.41)
Total Rate Base
$2,294.08
Overall Cost of Capital and Rate of Return
Embedded
Weighted
($ millions)
Amount
Percent
Cost
Cost
Long-Term Debt
$1,107.9
43.11%
3.60%
1.55%
Common Equity
1,462.2
56.89%
10.50%
5.97%
Total
$2,570.1
100.00%
7.53%
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 September 1, 2020 through August 31, 2021. 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 estimated the 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.
March 30, 2021
August 15, 2021
October 15, 2021
December 1, 2021
Initial Decision
Hearings &
(ALJ) and Order
Filing
Discovery
Summation
(BPU)
New Rates
4 ½ Months
2 Months
3 Months
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.
Recent Base Rate Cases
Overall
Weighted
Cost of
Return on
Equity
Company
Filing Date
Settlement Date
Capital
Equity
Ratio
Atlantic City Electric
December 2020
Pending
7.34%*
10.30%*
50.18%*
South Jersey Gas
March 2020
September 2020
6.90%
9.60%
54.0%
JCP&L
February 2020
June 2020
7.40%
9.60%
51.44%
Rockland Electric
May 2019
January 2020
7.11%
9.50%
48.32%
* As filed
POST TEST YEAR
In addition, NJNG is seeking permission for rate recovery for the Southern Reliability Link (SRL) as a post-test year capital addition. Construction of the SRL is underway. NJNG estimates that $39.5 million of the $165.67 million requested increase in base rates is associated with the completion of the project.
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 regarding NJR’s fiscal 2021 NFE guidance, forecasted contribution of business segments to NJR’s NFE for fiscal 2021 and the risks associated with bad debt expense.
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 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.
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 over 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex and Burlington counties.
●
NJR Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 357 megawatts, providing residential and commercial customers with low-carbon solutions.
●
NJR 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 & 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 Project, as well as our 50 percent equity ownership in the Steckman Ridge natural gas storage facility, and our 20 percent equity interest in the PennEast Pipeline Project.
●
NJR 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 nearly 1,200 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 Twitter @NJNaturalGas. “Like” us on facebook.com/NewJerseyNaturalGas.
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