Gabe Maureen

Gabe Maureen asked about the contract renegotiations and rollover status for Leaf River, the timing for final investment decisions (FIDs) on larger expansions, and the confidence in Clean Energy Ventures' (CEV) growth outlook, including construction progress and overcoming past delays.

Answer

Steve Westhoven (President and CEO, New Jersey Resources) explained that Leaf River's contracts have varying terms, with new contracts securing significantly higher rates (up to 20 cents per decatherm per month from 9 cents), which is driving the doubling of Net Financial Earnings (NFE) from Storage and Transportation (S&T). He confirmed that all expansion investments will be backed by signed contracts, with initial spending already underway. For CEV, Mr. Westhoven noted substantial capital deployment for projects spanning the next two fiscal years, highlighting that safe harbored projects exceed current capital plan needs and benefit from favorable policy due to electric capacity shortfalls.

Gabe Maureen inquired about the status of contract renegotiations for Leaf River within the Storage and Transportation (S&T) segment, specifically asking if all original contracts have been remarketed at current market rates and the timeline for future contract rollovers. He also asked about the potential timing for Final Investment Decisions (FIDs) on larger Leaf River expansion projects given strong customer interest. Additionally, Maureen sought clarification on the Clean Energy Ventures (CEV) growth outlook, including the progress of construction, interconnect status, and how past delays in the segment are being addressed. He also asked about the weighted average contract life for SREC/TREC in CEV and the overall 2030 CapEx plan.

Answer

Steve Westhoven, President and CEO, explained that Leaf River contracts have various terms, with a current bias towards longer-term contracts at significantly higher rates (up from ~9 cents to ~20 cents per decatherm per month), driving the doubling of S&T's Net Financial Earnings (NFE). He confirmed that investments in expansion phases (compressor station, existing facilities enlargement, fourth cavern) would be backed by signed contracts, with initial spending already underway for near-term projects. For CEV, Westhoven noted significant capital expenditure on projects spanning fiscal years, a strong pipeline of safe-harbored projects, and a favorable position due to New Jersey's electric capacity shortfall and mature PJM queue positions. He also discussed the long-term value of CEV assets, emphasizing repowering, battery integration, and the potential for organic growth beyond initial contract lifespans.