Folsom,
NJ - South Jersey Gas has filed its Basic
Gas Supply Service (BGSS) petition with the New Jersey Board
of Public Utilities (NJBPU), proposing a $16.9 million rate
decrease. This translates into a 3.7 percent reduction for
a residential heating customer. In addition, SJG also filed
its annual Conservation Incentive Program (CIP), requesting
a $15.4 rate increase. The net effect of these two petitions
will provide a rate reduction of approximately one percent
for residential heating customers. If approved, these rate
changes will take effect October 1, 2007.
“In spite of the volatility in natural gas prices
our management team has continued to identify opportunities
in the marketplace to maximize savings to our customers,” said
South Jersey Gas President and CEO Edward J. Graham. “Additionally
we have taken advantage of specific opportunities to restructure
our gas supply portfolio to serve our customers at a lower
cost while continuing the same degree of high reliability
they’ve come to expect.”
As a result of the company’s efforts,
a residential heating customer using 200 therms of natural
gas monthly will enjoy a savings of $12 or 3.7 percent.
The BGSS clause was approved by the NJBPU as
a mechanism to pass the actual wholesale cost of gas directly
to the utility’s customers. Through this clause, consumers
receive increases and decreases in costs directly from the
utility’s suppliers for the commodity, after they are
reviewed and approved by the NJBPU. South Jersey does not
profit from BGSS rate adjustments.
“As a result of SJG’s efforts, we’re able
to reduce our BGSS rate for the second consecutive year,” added
Graham.
Last year, SJG received NJBPU approval to implement the
pilot CIP. Under this program, SJG encourages customers to
use natural gas more efficiently by educating them about
measures they can take to reduce their natural gas consumption.
Customers choosing to employ energy efficiency measures will
receive an immediate benefit of lower monthly bills. The
program also benefits SJG by eliminating the link between
utility profits and the quantity of natural gas it sells.
To the extent that SJG may recover its lost margin revenue
from customers through the CIP, SJG is also required to achieve
BGSS gas cost savings for its customers that will at least
offset the CIP charges.
South Jersey Gas is the principal subsidiary of South Jersey
Industries (NYSE:SJI) and provides natural gas service to
over 330,000 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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