Folsom,
NJ – South Jersey
Gas, a subsidiary of South Jersey Industries (NYSE:SJI),
filed a petition January 23, 2009 with the New Jersey Board
of Public Utilities for an initiative that will encourage
energy efficiency, create “green” jobs
and strengthen the local economy.
“This filing is phase two of SJG’s initiative
to support Governor Corzine’s Economic Stimulus Plan.
The Governor and NJBPU President Jeanne Fox requested that
SJG include energy efficiency and conservation measures as
essential elements in all future energy planning to help
the state reduce greenhouse gas emissions by 2020,” stated
Edward J. Graham, president and CEO of SJI.
SJG is proposing an Energy Efficiency Tracker to implement
five energy efficiency programs during the next two years
totaling over $17 million that are incremental to the company’s
Conservation Incentive Program offerings. The Conservation
Incentive Program, a form of decoupling approved by the NJBPU
in October 2006 allows SJG to advocate for energy efficiency
without adversely impacting income. The current EET filing
was made under New Jersey’s Regional Greenhouse Gas
Initiative legislation, which encourages utilities to invest
in conservation and energy efficiency programs as part of
their regulated business.
“We believe an investment in energy efficiency programs
will have a long-term benefit for not only our customers
but for all residents in our region through the creation
of jobs. Our proposed programs will allow residential, commercial
and industrial customers to lower their energy bills through
their participation,” added Graham.
The first of the five new programs is designed to influence
purchases of heating equipment between now and 2010. SJG
would offer enhanced rebates of $900 for high efficiency
heating equipment purchases if customers agree to an in-home
energy assessment. After the assessment, customers will have
an option of selecting up to $1,000 worth of free air sealing
in cooperation with the NJ Clean Energy Program.
Program two involves offering eligible customers an attractive
financing package to assist in obtaining whole house energy
efficiency. Through rebates from the New Jersey Clean Energy
Program customers would ultimately be responsible to repay
just 25% of the loan to the financing agent over 10 years,
interest free.
The third program will reduce the environmental footprint
and energy consumption of small businesses. The program calls
for an energy assessment of a facility and installation of
energy saving measures with the customer responsible for
paying just 20% of the financing via a monthly bill over
120 months interest free.
A program for larger commercial and industrial
customers is being developed that will generate energy savings
for entities such as multifamily housing complexes, institutions,
schools, municipal complexes, medical facilities, etc. Upfront
financing options of up to $100,000 will be provided to install
energy efficient technologies, devices and related equipment.
The final program complements the goals of the NJ Energy
Master Plan to reduce energy consumption and carbon emissions
by lowering dependence on the electric grid system. This
program provides incentives for large commercial and industrial
customers to install a combined heat and power system or
an efficient distributed generation power plant.
In addition to this energy efficiency petition, SJG filed
a petition on January 20, 2009 for accelerated infrastructure
improvements. The programs related to infrastructure improvements
and energy efficiency are 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. Both petitions also
provide for SJG to make investments in its infrastructure
and energy efficiency projects and earn a return on, and
a return of, those investments. SJG’s infrastructure
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.
The cost of the energy efficiency programs is expected to
result in an increase of $0.0003 per therm. This represents
an increase of $0.30 on a residential customer’s heating
bill of 100 therms or 0.2%.
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. 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 energy efficiency
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 on-site energy
projects. South Jersey Resources Group provides wholesale
commodity marketing and risk management services. South Jersey
Energy Service Plus installs, maintains and services residential
and commercial heating, air conditioning and water heating
systems, services appliances, installs solar systems, provides
plumbing services and performs energy audits. For more information
about SJI and its subsidiaries, visit http://www.sjindustries.com.
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