South Jersey Industries
traces its roots back to 1910 when Atlantic
City Gas and Water Company was merged into
the Atlantic City Gas Company, owned by
Clarence H. Geist. This was the first in
a series of acquisitions that would eventually
create South Jersey Industries’ subsidiary,
South Jersey Gas. Geist acquired Peoples
Gas Company in 1922 and a number of smaller
companies over the next five years.
By 1930, he was recognized as the largest
holder of utility stocks in the country.
That year, Peoples and Atlantic City Gas
Company were sold to Public Service Corporation
of New Jersey, who operated them until
1948. In 1948, the Securities and Exchange
Commission ordered Public Service, which
owned all of South Jersey Gas' stock, to
distribute the common stock to its shareholders.
Just before the two companies became independent
of Public Service, Peoples merged into
Atlantic City Gas Company.
The company was named South Jersey Gas
and its new headquarters was located in
Atlantic City. During the 1950s, the company
acquired gas distribution properties in
Cumberland and Salem counties. The Cape
May County distribution facilities were
purchased from New Jersey Natural Gas in
1983.
An important event occurred in 1969 when
company management and the board of directors
decided to enable company shareholders
to participate in other businesses from
the South Jersey Gas might be barred as
a regulated public utility. To accomplish
this, South Jersey Industries was incorporated
as a holding company and in 1970 South
Jersey Gas became its primary subsidiary.
Early in 1970, ground
was broken in Folsom for SJI’s new corporate headquarters.
Later that year SJI purchased Jesse S.
Morie & Son, Inc., a sand and gravel
mining company in Cumberland County. Also
in 1970, SJI entered the oil heating business
by purchasing three fuel oil distribution
companies and housing them under a new
subsidiary, South Jersey Fuel. SJI dedicated
its new headquarters in 1971
In 1973, SJI created a
subsidiary, South Jersey Exploration to
explore for natural gas with its partner,
a Stone & Webster
subsidiary. SJI also purchased Delaware
Valley Industrial Gases in 1973. Delaware
Valley manufactured acetylene gas and serviced
the propane industry testing, repairing
and reconditioning gas cylinders.
As the decade of the ‘70s
ended, more and more homeowners were demanding
natural gas due to increasing supplies
and an attractive price compared with other
fuels.
In the mid-80’s South Jersey Energy
was created to take advantage of new business
opportunities in the natural gas industry
resulting from deregulation. And in 1989,
SJI purchased the assets of five affiliated
utility construction and general contracting
firms forming a new subsidiary, R&T
Group, Inc.
By the late 90s SJI had
sold or discontinued operations of Morie
Company, SJ Fuel, SJ Exploration and R&T Group and updated
its strategic plan to maximize long-term
shareholder value in the face of regulatory
and competitive environments. A decision
was made by management and the board of
directors to focus the company’s
activities exclusively on energy and energy
services.
With South Jersey Gas
as a solid foundation and South Jersey
Energy as a viable un-regulated business,
SJI began expanding its un-regulated businesses
to include the formation of South Jersey
Resources Group in 1996 to provide natural
gas storage, peaking services and transportation
capacity for wholesale customers. Marina
Energy was formed in 2000 to develop on-site
energy production facilities with Borgata
Casino Hotel & Spa
as its first customer. In 2004 SJI transferred
SJG’s appliance service business
to a newly formed subsidiary, South Jersey
Energy Service Plus, which improved the
company’s ability to address customer
needs and adapt to changing market conditions.
After growing these un-regulated businesses
from entrepreneurial start-ups to self-sustaining
business lines, SJI created South Jersey
Energy Solutions as a holding company to
consolidate the un-regulated companies
to better facilitate the next stage of
their development and maximize profitability.
The strategies developed a decade ago
to realize our vision have produced strong
earnings growth and shareholder returns.
Since applying these strategies in 1998,
we have more than doubled our earnings
per share. The years to come are certain
to be exciting and challenging as SJI and
its subsidiaries enter into new projects,
products and investments that grow our
company and advance our energy strategy.