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Elizabethtown Gas Reaches Settlement on First Rate Case Since 2009

Elizabethtown Gas Reaches Settlement on First Rate Case Since 2009

UNION, N.J. – June 21, 2017 – Elizabethtown Gas has reached an agreement with New Jersey Board of Public Utilities Staff, the New Jersey Division of Rate Counsel and the New Jersey Large Energy Users Coalition that resolves its first rate case since 2009.  An administrative law judge has recommended that the commissioners of the New Jersey Board of Public Utilities (NJBPU) accept the agreement as their final decision.

If the settlement is approved by the NJBPU, a typical residential heating customer who uses 1,000 therms will experience an average increase of 6.9 percent in their natural gas bill, or an increase of $57.52, annually. The monthly customer charge for residential delivery service would increase from $7.99 to $8.50.  

The settlement also reflects a return on equity of 9.6 percent a rate base of $720 million and an overall after tax rate of return of 5.772 percent.

“Since 2010, Elizabethtown Gas has invested $390 million in system improvements that safeguard the communities it serves, and provide customers with the great service they expect,” said Brian MacLean, president of Elizabethtown Gas. “Although we’ve made significant investments in our systems we have not increased our base rates since 2009.  We believe a fair agreement has been reached, look forward to a final resolution and are confident the outcome will be in the best interest of our customers and business.”

The company’s rate case, which was filed with the NJBPU in September 2016, is primarily driven by the need to recover the costs associated with making significant capital investments to modernize its natural gas infrastructure, as well as increases in operational costs.

The NJBPU is expected to review the terms of the settlement between Elizabethtown Gas, the board’s staff, the New Jersey Division of Rate Counsel and the New Jersey Large Energy Users Coalition on June 30.

Pending approval, the new rate will go into effect on July 1.

About Elizabethtown Gas

Elizabethtown Gas is one of seven natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Elizabethtown Gas provides natural gas delivery service to approximately 286,000 residential, business and industrial natural gas customers in New Jersey. In operation since 1855, the company serves parts of Union, Middlesex, Sussex, Warren, Hunterdon, Morris and Mercer counties. Elizabethtown Gas focuses on delivering exceptional service to its customers every day, and was ranked highest in customer satisfaction with residential natural gas service in the East among midsize utilities, two years in a row, by J.D. Power and Associates.* Elizabethtown Gas also is committed to economic growth and development in New Jersey and was recognized in 2016 with the Economic Impact Award by the Supplier Diversity Development Council. For more information, visit www.elizabethtowngas.com and connect with the company on Facebook (Facebook.com/ElizabethtownGas) and Twitter (Twitter.com/etowngas).

About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE:SO), America’s premier energy company. Southern Company Gas serves approximately 4.6 million natural gas utility customers through its regulated distribution companies in seven states and more than 1 million retail customers through its companies that market natural gas and related home services. Other nonutility businesses include asset management for natural gas wholesale customers and ownership and operation of natural gas storage facilities. For more information, visit Southern Company Gas at southerncompanygas.com.


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