Energy taxes hit with double whammy

TRENTON – Energy tax revenue shortfall was the result of a double whammy between lowered natural gas prices and lower consumption, Office of Legislative Services Budget Officer David Rosen told legislators.

Both the lowered consumption and lowered prices were largely the result of a mild winter.

For fiscal year 2012, OLS is projecting  a $329 million shortfall in energy tax revenues and a $40 million shortfall in fiscal year 2013.

The prepayment made by customers on natural gas consumption was $120 million smaller than what the Christie Administration forecasted.  

He said the forecast should improve next year.

“We assume there will be some bounce back because we’re assuming a more normal winter,” Rosen said.  

Energy taxes hit with double whammy