It's not just the tourists that appreciate the services of New Jersey Natural Gas, it's the locals, too. The gas utility provides gas distribution service to 500,100 residential, commercial, and industrial customers in New Jersey's vacationland -- Monmouth and Ocean counties, and parts of Morris and Middlesex counties. The company is the principal subsidiary of publicly traded regional utility New Jersey Resources and operates 6,700 miles of distribution pipeline. Sister company NJR Retail Holdings offers appliance installation, repair and maintenance service to about 150,000 homes and businesses in its service region.
New Jersey Natural Gas' service territory is in New Jersey's Monmouth and Ocean counties and parts of Burlington, Morris, Middlesex, and Sussex counties.
The company's revenues decreased by 35% in fiscal year 2012 due to a 35% drop in gas purchases related to firm sales primarily because of a 20% decrease in volumes of natural gas sold and a 36.7% decrease in prices; lower therm usage was primarily due to the weather being warmer than in the prior year.
However, net income grew by 3% in fiscal 2012 due to decrease in bad debt expense of $2.4 million corresponding to lower customer receivable balances during the year; a decrease of $582,000 in contractors' expense due to decreased snow removal compared with the prior year; and a decrease of $232,000 in leasing expenses due to increased purchases of assets.
Parent New Jersey Resources, pushing renewable energy to help meet its clean air obligations, also offers its utility customers incentives to install renewable energy technologies such as photovoltaic cells, wind, and biomass equipment. In addition, New Jersey Natural Gas has more than 40 customers whose service can be temporarily stopped (interruptible service) as they have the ability to switch to an alternate fuel source.
The company is focusing on investing in and maintaining an extensive infrastructure to support future growth.
New Jersey Natural Gas acquired the much larger Jersey Central Power and Light Company in a 1952 transaction that boosted the company's customer base from 14,000 to 98,000.
The gas utility, which started life as County Gas Company, changed its name to New Jersey Natural Gas Company following the acquisition.