Folsom,
NJ – South Jersey
Gas, a subsidiary of South Jersey Industries (NYSE:SJI),
filed a petition yesterday with the New Jersey Board of Public
Utilities for an initiative to create jobs in support of
Governor Corzine’s Economic Stimulus
Plan, while also making the state’s energy sources
greener. SJG is proposing infrastructure improvement projects
over the next two years totaling approximately $100 million
that are incremental to SJG’s normal capital programs
scheduled for 2009 and 2010. These expenditures, which were
otherwise planned to occur over the next five years, will
be invested in projects designed to enhance the safety, reliability
and capacity of SJG’s natural gas delivery system on
an accelerated basis.
“Governor Corzine and NJBPU President Jeanne Fox challenged
SJG to not only develop initiatives to boost current economic
activity in the state, but had the foresight to encourage
actions that support future economic growth as well,” stated
Edward Graham, president and CEO of SJI. “Investing
in utility infrastructure to provide safe and reliable service
is a core competency of South Jersey Gas. We believe that
accelerating this activity into 2009 and 2010 will provide
excellent opportunities to expand the job market and economic
development in the state while enhancing the reliability,
safety and system integrity for SJG’s customers,” continued
Graham. SJG’s proposed investment is expected to create
and support hundreds of jobs and provide a significant boost
to the local economy.
An example of incremental infrastructure investments being
proposed includes $26 million to accelerate SJG’s replacement
program for aging pipe originally scheduled for upgrade between
2011 and 2013. In addition to providing jobs and boosting
general economic activity in southern New Jersey, the replacement
of this pipe enhances our system’s “green” aspect
as modern piping is much more energy efficient.
The filing of this petition is a direct result of an intensive,
collaborative process involving New Jersey utilities, state
officials and consumer representatives to identify solutions
to the problems at hand that make both immediate and long-term
sense for all constituencies involved. In order for SJG to
make additional investments of this magnitude, the petition
allows SJG to earn a return of and a return on these specific
infrastructure investments as the funds are spent. This program
is expected to result in an increase in customer bills of
approximately one half of one percent to the average customer’s
monthly bill. SJG’s petition further specifies that
it has agreed to file a full base rate case with the NJBPU
during 2010. By that time, SJG expects to have made investments
of over $380 million to its infrastructure since the completion
of its last base rate case in 2004.
“We look forward to continuing our work with the
NJBPU Staff, Rate Counsel and Governor’s Office to
develop and implement the initiatives in our petition that
support the Governor’s Economic Stimulus Plan,” stated
Graham.
Forward-Looking Statement
This news release
contains forward-looking statements. All statements other
than statements of historical fact included in this press
release should be considered forward-looking statements made
in good faith by the Company and are intended to qualify
for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. When used in this
press release words such as “anticipate”, “believe”, “expect”, “estimate”, “forecast”, “goal”, “intend”, “objective”, “plan”, “project”, “seek”, “strategy” and
similar expressions are intended to identify forward-looking
statements. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the
statements. These risks and uncertainties include, but are
not limited to, the following: general economic conditions
on an international, national, state and local level; weather
conditions in our marketing areas; changes in commodity costs;
the timing of new projects coming online; changes in the
availability of natural gas; “non-routine” or “extraordinary” disruptions
in our distribution system; regulatory, legislative and court
decisions; competition; the availability and cost of capital;
costs and effects of legal proceedings and environmental
liabilities; the failure of customers, suppliers or business
partners to fulfill their contractual obligations; and changes
in business strategies. SJI assumes no duty to update these
statements should actual events differ from expectations.
About South Jersey Industries
South Jersey
Industries (NYSE: SJI) is an energy services holding company
for utility and non-regulated businesses. A member of the
KLD Global Climate 100 Index, SJI offers solutions to global
warming through renewable energy, clean technology and efficiency.
South Jersey Gas, one of the fastest growing natural gas
utilities in the nation, strongly advocates the efficient
use of energy while safely and reliably delivering natural
gas in southern New Jersey. South Jersey Energy Solutions,
the parent of SJI’s non-regulated businesses, provides
innovative, environmentally friendly energy solutions that
help customers control energy costs. South Jersey Energy
acquires and markets natural gas and electricity for retail
customers and offers energy-related services. Marina Energy
develops and operates energy projects including thermal facilities
serving hot and chilled water for casinos, cogeneration facilities
and landfill gas-to-electricity facilities. South Jersey
Resources Group provides wholesale commodity marketing and
risk management services. South Jersey Energy Service Plus
installs, maintains and services heating, air conditioning
and water heating systems, services appliances, installs
solar systems and performs energy audits. For more information
about SJI and its subsidiaries, visit http://www.sjindustries.com.
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