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RATES AND REGULATORY ACTIONS
6 Months Ended
Jun. 30, 2021
Public Utilities, General Disclosures [Abstract]  
RATES AND REGULATORY ACTIONS RATES AND REGULATORY ACTIONS:
SJG and ETG are subject to the rules and regulations of the BPU.

Except as described below, there have been no significant regulatory actions or changes to the Utilities' rate structures since December 31, 2020. See Note 10 to the Consolidated Financial Statements in Item 8 of SJI's and SJG's Annual Report on Form 10-K for the year ended December 31, 2020.

SJG:

Periodic Rate Mechanisms:

In January 2021, the BPU approved SJG’s request from its June 2020 filing for an increase in its EET rate. The approval reflected a $5.9 million increase in revenues, effective February 1, 2021.

In March 2021, the BPU approved and made final the credit rate proposed in SJG’s September 2020 filing associated with Tax Reform, which was already in effect on a provisional basis. It is anticipated that the approved rate will result in SJG returning approximately $14.9 million in excess deferred income tax to its ratepayers.

In April 2021, the BPU approved the stipulation resolving SJG's July 2020 Compliance Filing for its SBC (this rider to SJG's tariff adjusts SJG's rates related to RAC, CLEP & USF). All rate changes were approved as requested, and the stipulated rates reflect a $5.5 million increase in revenues. The approved stipulation also contains authority to defer costs related to Natural Resource Defense claims, plus carrying costs.

In April 2021, the BPU also approved a stipulation for expansion of SJG's EEP program for three years, effective July 1, 2021, authorizing a total budget of $133.3 million which would initially increase annual revenue by $5.4 million.

In May 2021, the BPU approved the final rates for SJG’s 2020-2021 BGSS and CIP filings, which were previously in effect on a provisional basis. The provisional BGSS rate was increased, effective June 1, 2021, to include recovery over a two-year period of $22.9 million of costs related to a previous pricing dispute on a long-term gas supply contract (see Note 8). The provisional CIP rate was approved as a final rate.
The following activity is currently pending BPU approval:

SJG submitted its annual SHARP II filing seeking recovery of an annual revenue requirement of $2.2 million on SHARP II investments placed in service during the period July 1, 2020 to June 30, 2021, totaling $22.6 million. The filing seeks approval to recover these investments through a base rate adjustment effective October 1, 2021.

SJG submitted its annual BGSS/CIP filing with a proposed effective date of October 1, 2021. For the BGSS component, SJG requested a $59.5 million increase in gas cost recoveries. For the CIP component, SJG requested a $15.3 million increase in revenues.

SJG filed its annual AIRP II filing, seeking recovery of an annual revenue requirement of $5.7 million on AIRP II investments placed into service during the period July 1, 2020 to September 30, 2021, totaling $58.7 million. The filing seeks approval to recover these investments through a base rate adjustment effective January 1, 2022.

SJG submitted its annual Rider H filing, which proposed an $11.6 million refund to customers through the Rider H credit rate for the period of October 1, 2021 through September 30, 2022.

SJG filed its annual EET filing, seeking to recover $12.8 million in revenue during the period October 1, 2021 to September 30, 2022.

SJG, along with the other New Jersey gas utilities, filed jointly for a statewide USF rate increase and no change to the current statewide LifeLine rate with effective dates of October 1, 2021, resulting in an increase in the combined rates. SJG's portion of the proposed revenue increase is approximately $3.8 million.

ETG:

In the first quarter of 2021, final rates were approved by the BPU for ETG's 2020-2021 WNC and CEP filings, effective February 27, 2021, which were already in effect on a provisional basis. The BPU also approved the requested RAC rate reflecting a $3.2 million decrease in revenues related to the recovery of costs of remediation, effective April 1, 2021.

In April 2021, the BPU approved the stipulation for ETG's new EEP program to expand its EEPs for three years effective July 1, 2021 authorizing a total budget of $83.4 million which would initially increase annual revenues by $2.8 million. This new EEP program will replace the one currently in effect. In April 2021, the BPU also approved the stipulation to establish a CIP similar to SJG's CIP, which eliminates the link between usage and margin and includes a weather-related component. The CIP will become effective July 1, 2021.

In June 2021, the BPU approved the final rate for ETG’s 2020-2021 BGSS filing, effective July 1, 2021, which was already in effect on a provisional basis. The BPU also approved a stipulation to resolve ETG’s annual EEP filing from July 2020. The approval reflected a $0.5 million decrease in revenues, also effective July 1, 2021.

The following activity is currently pending BPU approval:

ETG submitted its annual filing, pursuant to the June 2019 BPU approval of the IIP. This filing seeks a rider rate to increase annual revenues by approximately $7.1 million to reflect the roll-in of approximately $63.8 million of IIP investments placed in service during July 1, 2020 through June 30, 2021.

ETG submitted its annual BGSS filing, requesting a $14.0 million increase in gas cost recoveries, with an effective date of October 1, 2021.

ETG, along with the other New Jersey gas utilities, filed jointly for a statewide USF rate increase and no change to the current statewide Lifeline rate with effective dates of October 1, 2021, resulting in an increase in the combined rates. ETG's portion of the proposed revenue increase is approximately $3.5 million.