Folsom,
NJ – The New Jersey
Board of Public Utilities today approved a proposal by South
Jersey Gas, a subsidiary of South Jersey Industries (NYSE:SJI),
to create jobs in support of Gov. Corzine’s Economic
Stimulus Plan, while also improving the utility’s infrastructure
to enhance the delivery of safe and reliable service to its
customers.
The initiative involves extensive infrastructure improvement
projects over the next two years totaling $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 compressed
into the next two years to complete construction projects
important to SJG’s gas delivery systems and simultaneously
generate more jobs. The infrastructure program allows SJG
to earn a return of and a return on these specific infrastructure
investments as the funds are spent.
SJG also agreed to file a full base rate case with the NJBPU
during 2010 as part of the infrastructure program. By that
time, the company expects to have invested over $380 million
in infrastructure since the completion of its last base rate
case in 2004.
“This program is the result of ongoing cooperation
between SJG, the NJBPU and the Division of Rate Counsel,” said
Edward Graham, chairman, president and CEO of SJI. “Without
our combined efforts, a program of this magnitude could not
have been developed, proposed or approved. Throughout this
process, we have endeavored to identify viable solutions
to the challenges facing our State. I am pleased that through
our initiative, we will be able to expand the job market
while at the same time enhancing the operation of our gas
distribution system.”
“These projects were carefully reviewed against strict
criteria,” explained Jeanne M. Fox, president of the
NJBPU. “By expediting spending on identified infrastructure
needs, these projects can provide important support for our
economy now, as requested by Governor Corzine, while ensuring
a reliable and secure energy supply for future economic growth.
In addition, by putting many of these projects out to bid
in a slow economy, this work can be completed at a lower
cost to ratepayers.”
The program is expected to result in an increase of approximately
one half of one percent to the average customer’s monthly
bill. For a customer using 100 therms of gas in a month,
that increase translates into $.94 per bill.
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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