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Telephone: (609) 561-9000
Media Contact: Joanne Brigandi
Investor Relations Contact: Stephen Clark x4260
FOLSOM, N.J. -- South Jersey Gas received approval today from the New Jersey Board of Public Utilities to decrease its Basic Gas Supply Service rate effective October 1, 2006. Based on 100 therms of consumption, a monthly residential bill will decrease 7.6%. This translates into a decrease of $13.19 from $173.29 to $160.10 for those customers.
“Since last winter natural gas prices have gradually decreased and are expected to be lower during the upcoming winter than they were last year. In addition, we’re aggressively seeking opportunities to reduce gas costs by restructuring our gas supply portfolio, while continuing to provide high quality gas service,” explained Edward J. Graham, president and CEO. “As a result of our restructuring initiatives and lower wholesale natural gas prices currently available in the marketplace, we’re pleased to pass along a BGSS rate reduction this year,” Graham added.
Wholesale natural gas prices had spiked last winter due to the impacts of hurricanes Katrina and Rita on natural gas production in the gulf coast. SJG pays those wholesale prices and is permitted by the NJBPU to pass increases and decreases in gas costs to customers.
Also, with a goal of further reducing customers’ bills SJG has proposed innovative programs to its regulators that will encourage conservation. If approved, these proposals could provide continued reductions to BGSS rates in future years.
South Jersey Gas makes no profit on the sale of the natural gas commodity itself and passes along what it pays directly to customers through the Basic Gas Supply Service clause.
South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to over 325,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and significant portions of Gloucester, Burlington and Camden counties in New Jersey. Visit http://www.southjerseygas.com to learn more about South Jersey Gas and its programs.
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