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RATES AND REGULATORY ACTIONS
9 Months Ended
Sep. 30, 2022
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, 2021. 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, 2021.

SJG:

Effective January 1, 2022, the BPU approved the Company's June 2021 AIRP II petition, to roll into base rates $69.0 million of investments placed into service during the period of July 1, 2020 through September 30, 2021. The result was an increase in annual revenue of $6.7 million.

In the first quarter of 2022:

The BPU issued an Order resolving SJG's 2021-2022 Tax Act Rider petition, with a revised Rider H credit rate effective April 1, 2022 in order to refund approximately $11.7 million for the period beginning October 1, 2021 and ending September 30, 2022.
The BPU approved a decrease in SJG's EET rate effective April 1, 2022, reflecting a $1.1 million decrease in annual revenues related to the recovery of costs of energy efficiency programs.

In April 2022, SJG filed a petition with the BPU requesting a base rate revenue increase of $73.1 million, which was updated in September 2022 to a requested $82.3 million, primarily to obtain a return on and of new capital investments made by SJG since the settlement of its last base rate case in 2020. The matter is currently pending BPU approval.

In May 2022, the BPU approved an increase in SJG's SBC and TIC rates, effective June 1, 2022, reflecting a $0.8 million increase in annual revenues related to the recovery of costs of SJG's societal benefit programs.
In November 2020, SJG filed a petition with the BPU, seeking authority to implement an IIP pursuant to which SJG would recover the costs associated with SJG's planned initial investment of approximately $742.5 million from 2021-2026 to, among other things, replace its at-risk plastic and coated steel mains, as well as excess flow valves on new service lines, and related services. In June 2022, the BPU approved a 5-year $200 million program with an effective date of July 1, 2022.

In July 2022, the provisional rates approved by the BPU in November 2021 for SJG's 2021-2022 BGSS/CIP filing were made final, effective August 1, 2022.

In September 2022, the BPU approved provisional rates for SJG's 2022-2023 BGSS/CIP filing submitted in June 2022, with effective dates of October 1, 2022. These rates reflect a $85.7 million increase in gas cost recoveries associated with the BGSS component and a $5.6 million increase in annual revenues for the CIP component.

In September 2022, the BPU approved decreases to the statewide USF and Lifeline rates, with effective dates of October 1, 2022, resulting in an approximately $1.2 million decrease for SJG.

The following activity outside of the base rate revenue petition described above is currently pending BPU approval:

SJG submitted its annual filing associated with the Tax Cuts and Jobs Act of 2017 in June 2022, which proposed a $9.5 million refund to customers through the Rider H credit rate for the period of October 1, 2022 through September 30, 2023.

SJG submitted its annual EET filing in July 2022, requesting a $4.8 million decrease in annual revenues related to the recovery of the costs of its energy efficiency programs, with a proposed effective date of October 1, 2022.

SJG submitted its annual SBC and TIC filing in July 2022, requesting a $1.8 million increase in annual revenues related to the recovery of costs of SJG's societal benefits programs and electronic data interchange development and operating costs, with a proposed effective date of November 1, 2022.

ETG:

In the first quarter of 2022:

Provisional rates approved by the BPU in September 2021 for ETG's 2021-2022 WNC and CEP filing were made final, effective February 25, 2022.
The provisional rate approved by the BPU in November 2021 for ETG's 2021-2022 BGSS-P rate was made final, effective March 30, 2022.
The BPU approved a decrease in ETG's EEP rate, effective March 1, 2022, reflecting a $1.6 million decrease in annual revenues related to the recovery of costs of energy efficiency programs.

In June 2022, the provisional rates approved by the BPU in November 2021 for ETG's 2021-2022 RAC filing were made final, effective July 1, 2022.

In August 2022, the BPU approved the settlement of ETG's rate case petition, resulting in an increase in annual revenues from base rates effective September 1, 2022 of $40.0 million, including an approved after-tax rate of return of 6.8%, with a return on equity of 9.6% and a common equity component of 52.0%.

In September 2022, the BPU approved provisional rates for ETG's BGSS/CIP filing submitted in June 2022 with effective dates of October 1, 2022. These rates reflect a $57.4 million increase in gas cost recoveries associated with the BGSS component and a $2.2 million net increase in annual revenues for the CIP component.

In September 2022, the BPU approved a provisional rate for ETG's CEP filing submitted in July 2022, effective October 1, 2022, resulting in a decrease of $0.8 million in revenues.

In September 2022, the BPU approved decreases to the statewide USF and Lifeline rates, with effective dates of October 1, 2022, resulting in an approximate $1.1 million revenue decrease for ETG.

In September 2022, the BPU approved the increases to IIP rates effective October 1, 2022. This approval reflected an increase to annual revenues of approximately $6.3 million to reflect the roll-in of approximately $57.7 million of IIP investments placed in service from July 1, 2021 through June 30, 2022.
The following activity is currently pending BPU approval:

ETG submitted its annual RAC filing in July 2022, requesting a $5.1 million increase in revenue related to the recovery of remediation costs, with a proposed effective date of October 1, 2022.
•ETG submitted its annual filing for its EEP programs in July 2022, requesting a $0.1 million decrease in revenues, with a proposed effective date of October 1, 2022.