TRENTON, N.J. — Monthly heating bills for New Jersey Natural Gas customers are rising by 15.7% under a settlement finalized Thursday by the state Board of Public Utilities, scaling back an earlier proposal for a steeper hike of nearly 24%.
The rate increase allows the utility, based in Wall, N.J., to recover $850 million spent on system improvements since 2021. The agreement, reached with the state Division of Rate Counsel and regulators, raises the delivery rate, which funds the utility’s operations, infrastructure upgrades, and profit margins.
For residential customers using 100 therms of natural gas monthly, bills will climb from $151.62 to $175.56—a $23.94 increase. The change, effective immediately, is expected to generate $157 million in additional annual revenue for the company.
“This is a reasonable, fair settlement that recognizes the value of the approximately $850 million of investments New Jersey Natural Gas has made in its operations and system since 2021,” said Steve Westhoven, the company’s president and CEO, in a statement.
This is the first base rate hike for the utility since 2021, when a previous settlement allowed an 11.3% increase after regulators denied a larger initial request.