Profile: New Jersey Resources Corp (NJR)
16 Mar 2018
New Jersey Resources Corporation is an energy services holding company. The Company's principal business is the distribution of natural gas through a regulated utility, which provides other retail and wholesale energy services to customers and investing in clean energy projects and midstream assets. The Company operates in four business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream. The Natural Gas Distribution segment consists of regulated natural gas services, off-system sales, capacity and storage management operations. The Energy Services segment consists of unregulated wholesale energy operations. The Clean Energy Ventures segment consists of capital investments in clean energy projects. The Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. The Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, commercial real estate development, other investments and general corporate activities.
The Company's Home Services and Other operations consist primarily of unregulated affiliates. As of September 30, 2016, it consisted of NJR Home Services Company (NJRHS), which provided heating, ventilation and cooling service, sales and installation of appliances to approximately 114,000 service contract customers, as well as installation of solar equipment; NJR Plumbing Services, Inc. (NJRPS), which provides plumbing repair and installation services, and Commercial Realty & Resources Corp. (CR&R), which holds commercial real estate. Its NJR Investment holds certain energy-related investments, primarily through equity instruments of public companies.
Natural Gas Distribution
As of September 30, 2016, the Company's Natural Gas Distribution segment consisted of New Jersey Natural Gas Company (NJNG), a natural gas utility that provides regulated retail natural gas service in central and northern New Jersey to approximately 521,200 residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets. NJNG's service territory includes New Jersey's Monmouth and Ocean counties and parts of Burlington, Morris and Middlesex counties. As of September 30, 2016, NJNG added 8,170 customers and added natural gas heat and other services to another 644 customers. NJNG through construction includes pursuing conversions from other fuels, such as oil, electricity and propane.
The Company's Energy Services segment consists of NJR Clean Energy Ventures Corporation (NJRCEV), which is an unregulated company that invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, and wind farms located in Montana, Iowa, Kansas, Wyoming and Pennsylvania. As of September 30, 2016, NJRCEV had constructed a total of 149.7 megawatts (MW) of solar capacity, including a combination of residential and commercial net-metered and grid-connected solar systems in New Jersey. As part of its solar investment program, NJRCEV operates a residential lease program, The Sunlight Advantage, which provides qualifying homeowners with the opportunity to have a solar system installed at their home with no installation or maintenance expenses. NJRCEV owns, operates and maintains the system over the life of the lease in exchange for monthly lease payments. NJRCEV's commercial solar projects are sourced through various channels and include both net-metered and grid-connected systems. Net-metered projects involve the sale of energy to a host and grid-connected systems into the wholesale energy markets. NJRCEV sells the Solar Renewable Energy Certificate (SRECs) it generates to various counterparties, including electric load serving entities that serve electric customers in New Jersey and are required to comply with the solar carve-out of the Renewable Portfolio Standard.
Clean Energy Ventures
The Company's Clean Energy Ventures segment consists of NJR Clean Energy Ventures Corporation (NJRCEV). NJRCEV has various solar contracts, including lease agreements and easements, allowing the installation, operation and maintenance of solar equipment and access to the various properties, including commercial and residential rooftops. As of September 30, 2016, in addition to the lease agreements and easements, NJRCEV owned 79.5 acres of land in Vineland, New Jersey for its Vineland solar project. NJRCEV owns solar panels with a total of 149.7 MW of capacity. NJRCEV is also party to various land lease agreements and easements, which allow for the installation, operation and maintenance of wind turbines, associated electric collection facilities, substations, operation and maintenance buildings and access to the various properties. As of September 30, 2016, NJRCEV owned the wind projects, such as 9.7 mega-watt (MW) project in Two Dot, Montana; 20 MW project in Carroll County, Iowa; 50.7 MW project in Rush County, Kansas, and 6.3 MW project in Carbon County, Wyoming.
The Company's Midstream segment includes investments in Federal Energy Regulatory Commission (FERC) regulated interstate natural gas transportation and storage assets. The Company's subsidiaries include NJR Steckman Ridge Storage Company, NJR Pipeline Company and NJR Midstream Holdings Corporation. As of September 30, 2016, its NJR Steckman Ridge Storage Company held the Company's 50% equity investment in Steckman Ridge. As of September 30, 2016, NJR Pipeline Company consisted of its 20 % equity investment in PennEast.
New Jersey Resources Corp
1415 Wyckoff Rd
PO Box 1468
BELMAR NJ 07719-1468
Company Web Links
- BRIEF-New Jersey Resources Q1 Earnings Per Share $1.42
- BRIEF-New Jersey Resources Says Federal Energy Regulatory Commission Approves PennEast Pipeline
- BRIEF-New Jersey Resources Increases 4-Month Revolving Credit Facility To $100 Million
- BRIEF-New Jersey Resources Says Entered Into $75 Mln Revolving Line Of Credit Facility
- BRIEF-New Jersey Resources reports fiscal 2017 results