Largest Investment in Company History Adds to Customer-Friendly Solutions that Help Reduce Carbon Emissions, While Saving Money

Building on its strong leadership in offering practical and effective energy-efficiency programs, New Jersey Natural Gas (NJNG) today filed with the New Jersey Board of Public Utilities (BPU) a proposed next generation of SAVEGREEN™ energy-efficiency offerings. Launched in 2009, SAVEGREEN provides energy efficiency solutions that meet the unique needs and budgets of residential and commercial customers — including low- and moderate income, multifamily, hospitals and municipalities. If approved by the BPU, the new SAVEGREEN program cycle is expected to begin January 1, 2025, and run through June 30, 2027.

The $482.4 million proposal will strengthen NJNG’s existing energy-efficiency offerings and provide comprehensive solutions to help participating customers save energy and reduce carbon emissions, while supporting New Jersey’s ambitious climate goals. The proposal includes $217.2 million for continued 0% APR on-bill repayment programs, which provide customers the opportunity to access energy-efficiency upgrades by eliminating the upfront cost barriers. If fully subscribed, SAVEGREEN will help participating customers save more than 94 million therms of natural gas. This program will prevent over 694,000 metric tons of CO2 from entering the atmosphere, the same as removing nearly 155,000 cars from New Jersey’s roads each year.

“Energy-efficiency is the engine that drives us toward our carbon emission reduction goals, while also providing energy savings for families and businesses,” said Steve Westhoven, president and chief executive officer of New Jersey Natural Gas. “These programs are cost-effective, help customers save on their energy bills and reduce carbon emissions by lowering energy usage. As the largest SAVEGREEN program proposal in NJNG’s history, this filing builds on our commitment to ensure equitable access to energy affordability and to provide practical emission-reduction solutions that address climate goals. We look forward to working with the BPU to put these programs to work for our customers and New Jersey.”

Building on Success

NJNG’s focus on providing successful energy-efficiency solutions has helped thousands of customers reduce their natural gas consumption. The proposed framework filed with the BPU strengthens NJNG’s existing energy-efficiency solutions, streamlining program offerings and increasing financing limits for qualifying equipment and comprehensive building measures, including those for low- and moderate-income customers, multifamily and public entities. It also proposes to expand NJNG’s recently launched Workforce Development Program, which provides free educational opportunities, technical training and certification to support and advance a clean energy workforce and economy.

Natural Gas Demand Response

To align with the state’s clean energy goals, and increase energy-saving opportunities for residential customers, NJNG will offer a natural gas demand response (DR) solution consisting of two distinct paths — one uses customers’ existing smart thermostats and the other employs innovative technology at the meter. NJNG will engage customers and provide real-time, actionable insights to help reduce their natural gas usage during peak times. Participation in the program will be optional; and NJNG will incentivize customers to proactively manage their energy costs and reduce their carbon footprint beyond energy-efficiency measures.

Building Decarbonization

Through rebates and financing opportunities, NJNG will provide the option for residential customers to install residential hybrid heat systems. Moreover, the company will support the exploration and development of district geothermal heating within its service territory as part of its commitment to a cleaner energy future. This district heating approach could potentially serve residential, commercial and multifamily customers and benefit low- and moderate-income customers, including those residing in overburdened communities. These high-efficiency technologies provide an alternative path forward for customers that support increased energy savings and reduced emissions.

The proposed 30-month SAVEGREEN program cycle NJNG is seeking includes approximately $245.1 million of direct investment and $217.2 million in financing options. The average annual impact to natural gas bills for the typical residential heating customer using 1,000 therms per year is expected to be $44.83, or 3%, over the life of the program.

Since its inception, NJNG’s investment in SAVEGREEN energy-efficiency program offerings has helped build a portfolio of business for thousands of contractors who have participated in the program and generated nearly $595 million in economic activity. Over the lifetime of the program, 93,000 customers have taken advantage of rebates and incentives for energy-efficiency improvements, while over the past year more than 238,000 customers have participated in total SAVEGREEN program offerings, including behavioral.

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 natural gas transportation and distribution infrastructure to serve nearly 576,000 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 469 megawatts, providing residential and commercial customers with low-carbon solutions.
• 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 and 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, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
• 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 over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as SAVEGREEN™ and The Sunlight Advantage®.

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