Folsom,
NJ – Increases
in wholesale natural gas prices are forcing New Jersey’s
natural gas utilities, and others across the nation, to seek
rate increases to recoup these costs. South Jersey Gas today
filed with the New Jersey Board of Public Utilities for an
increase to its Basic Gas Supply Service rate. The BGSS clause
serves as a method to pass along increases and decreases
in gas costs to customers. As South Jersey Gas makes no profit
on the sale of the natural gas commodity itself, it likewise
will make no profit from this rate adjustment.
SJG is proposing a 17.8 percent rate increase to an average
residential customer’s bill, which translates into
an annual increase of approximately $227. SJG expects the
rate increase to take effect on October 1, 2008. Since the
Fall of 2007, wholesale natural gas prices have increased
by 48%. However, SJG’s customers will only pay a small
portion of that increase.
“Because of our prudent purchasing practices and our
Conservation Incentive Program, we can shelter our customers
from the full impact of increased wholesale prices,” stated
Edward J. Graham, SJG’s president. “Even with
the proposed rate increase, natural gas will be nearly 40
percent less expensive than other heating sources, such as
propane, oil or electricity,” Graham added.
Graham continued, “we’ve worked closely with
our regulators throughout the filing process, and we share
their goal of minimizing the impact of rising energy costs
on our customers. We monitor natural gas prices daily and
continually work to identify opportunities to purchase natural
gas supplies at the lowest possible cost. We have the ability
to give our customers a credit when prices fall and if that
occurs we will exercise this option as we have in the past.”
South Jersey Gas also filed its annual Conservation Incentive
Plan (CIP), requesting a 1.5 percent increase, or an additional
$19 per year to the average residential customer.
In 2006, SJG received approval from the New Jersey Board
of Public Utilities to implement an innovative pilot CIP.
Under this program, SJG encourages its customers to use natural
gas more efficiently by educating them about measure they
can take to reduce natural gas consumption. Customers choosing
to employ energy efficiency measures receive an immediate
benefit of lower monthly bills. SJG is required to achieve
BGSS gas cost savings for its customers.
On two occasions during the past two years SJG has reduced
its BGSS rate to its customers, resulting in customer savings
of $65.1 million.
South Jersey Gas and the Board of Public Utilities are emphasizing
the critical need for conservation and energy efficiency.
Conservation is an essential component in saving money on
energy bills. Using recommended conservation measures will
allow customers to remain comfortable in their homes and
save up to 30 percent on home heating bills.
South Jersey Gas and the New Jersey Board of Public Utilities
recommend the following energy and money saving tips:
• Use ceiling fans. Using ENERGY
STAR qualified ceiling fans can help cool your home without
greatly increasing electricity use. Ceiling fans also improve
airflow and create pleasant breezes. Make sure to turn them
off when you are out of the room.
• Use a programmable thermostat. A home doesn’t need
to be chilled all day to be comfortable, so save energy and
money by installing an ENERGY STAR qualified, programmable
thermostat to regulate cooling and heating systems. Save
3 percent on energy costs for each degree you set your thermostat
higher than 72 degrees on your window unit or central air
conditioner.
• Light homes with a cooler bulb. ENERGY STAR qualified
lighting produces 75 percent less heat, uses 75 percent less
energy and lasts up to 10 times longer than a standard incandescent
bulb. One ENERGY STAR qualified compact fluorescent light
bulb saves $65 and reduces carbon dioxide emissions by almost
700 pounds over its lifetime.
• Save up to 16 percent by using less hot water.
Take short showers instead of baths, and lower your hot water
heater from 150 degrees to 120 degrees. You can also use
the BPU’s
Water Heater Calculator – found at www.NJCleanEnergy.com – to
learn how much you can save with an energy-efficient water
heater.
• Take a free online Home Energy Analysis at www.NJCleanEnergy.com,
or call 1-866-NJSMART (1-866-657-6278). With just a few clicks
of your mouse, you will find specific energy-saving recommendations
customized to your lifestyle, energy usage and location.
There are a number of programs available for households
having trouble paying their utility bills. Call the numbers
associated with each program for further information, or
contact the NJBPU Division of Customer Assistance at 1-800-624-0241.
• Comfort Partners. This program is designed to improve
energy affordability through direct installation of free
energy efficiency measures and education about conservation
tips to save money. Recipients of these free services must
have income at or below 175 percent of the Federal Poverty
Level, or can be enrolled in the Universal Service Fund Program,
the Lifeline Program and/or Pharmaceutical Assistance to
the Aged and Disabled. For more information on Comfort Partners,
please call 1-888-773-8326.
• Universal Service Fund. The NJBPU created the Universal
Service Fund program to help make energy bills more affordable
for low-income customers (households with an income at or
below 175 percent Federal Poverty Level). USF covers a portion
of household energy bills for amounts beyond 3 percent of
annual gross household income for electricity and gas. If
a household heats with electricity, USF covers the portion
of the electric bill that is over 6 percent of annual household
income. USF credits are capped at $1,800 per household per
year. First time USF enrollees with significant arrearages
also have an opportunity to earn forgiveness for overdue
balances that accrued prior to their enrollment in USF. The
New Jersey Department of Community Affairs administers the
USF program. Applications are accepted at any time of the
year. For an application or more information on USF, please
visit www.energyassistance.nj.gov or call the USF Hotline
toll free at: 1-866-240-1347.
• Lifeline Program. Lifeline is a program that offers $225
to seniors and the disabled who meet the PAAD eligibility
requirements or who receive Supplemental Security Income.
This includes utility customers as well as tenants whose
utility bills are included in their rent. Lifeline benefits
are provided for only electricity and natural gas. Approximately
314,000 people received more than $70 million in Lifeline
benefits last year. Lifeline is administered by the Department
of Health and Senior Services. For more information on Lifeline,
please call 1-800-792-9745.
• NJ SHARES. NJ SHARES is a non-profit corporation organized
to provide assistance to individuals and families living
in New Jersey who are in need of temporary help in paying
their energy bills. To qualify for NJ SHARES, a person or
family must be facing a financial crisis and not be eligible
for welfare or energy assistance programs. Recipients must
also have a history of good-faith payments of their utility
bills. Upon approval, recipients may receive a one-time grant
of up to $700 for gas and $300 for electricity, or $700 for
an all-electric home. Please call NJ SHARES at 1-866-657-4273
or visit www.njshares.org.
To help manage natural gas bills and avoid
high spikes in winter heating season costs, SJG customers
can sign up for the Equal Payment Plan. For EPP customers
SJG divides their annual bill into 12 equal monthly payments,
with an adjustment or settle-up in the final month. “We urge all eligible
customers to take advantage of our free Equal Payment Plan,” Graham
said. “It is a great tool that allows customers to
know exactly how much their bill will be each month, and
helps them adjust their budgets accordingly.” SJG customers
can visit http://www.southjerseygas.com to enroll in the
Equal Payment Plan or contact the Customer Care Center at
888-766-9900.
South Jersey Gas is the principal subsidiary of South Jersey
Industries (NYSE:SJI) and provides natural gas service to
over 335,000 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.sjindustries.com to learn more
about South Jersey Gas and its programs.
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