Folsom,
NJ – South Jersey Gas received approval
from the New Jersey Board of Public Utilities to implement
several company proposals resulting in a net rate decrease
of 4.6% for residential heating customers, effective October
24, 2007. The net effect of the NJBPU’s action will
result in a decrease of $7.49 per month to a residential
customer’s bill of 100 therms.
The first proposal was a reduction to SJG’s Basic
Gas Supply Service charge. The BGSS is a mechanism to pass
increases and decreases in the actual wholesale cost of gas
paid by SJG directly to the utility’s customers after
being reviewed and approved by the NJBPU.
The NJBPU also approved SJG’s initial
charge under the Conservation Incentive Program. Last year,
SJG received approval from the NJBPU to implement the pilot
CIP, whereby SJG encourages customers to use natural gas
more efficiently through education measures. Customers choosing
to employ energy efficiency measures receive an immediate
benefit of lower monthly bills. The program also benefits
SJG by eliminating the link between profits and the quantity
of natural gas sold. To the extent SJG may recover its lost
margin due to reduced consumption from customers through
the CIP, the company is also required to pass along BGSS
cost reductions to those customers that will at least offset
the CIP charge. In this case, the BGSS reduction more than
offsets the CIP charge.
“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 SJG’s
efforts, we’re able to reduce our BGSS rate for the
second consecutive year,” added Graham.
In addition, the NJBPU approved a small increase
in SJG’s
Temperature Adjustment Clause charge. The TAC provided stability
to SJG’s earnings by normalizing the impact of colder-than-normal
and warmer-than-normal weather during the winter season.
The adjustment was applicable to prior years ending in September
2006, when the TAC was replaced by the CIP.
South Jersey Gas is the principal subsidiary of South Jersey
Industries (NYSE:SJI) and provides natural gas service to
over 332,000 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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