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),
that will create jobs and strengthen the local economy in
support of Gov. Corzine’s Economic
Stimulus Plan, while also providing customers with new, energy
efficiency program incentives that will result in reduced
energy bills.
The initiative involves implementation of five programs
over the next two years totaling over $17 million that are
incremental to the company’s Conservation Incentive
Program. The CIP, a form of decoupling approved by the NJBPU
in October 2006 allows for SJG to advocate for energy efficiency
without adversely impacting income. The new energy efficiency
programs will allow SJG to earn a return of, and a return
on, these investments.
The cost of the energy efficiency programs is expected to
result in a minimal increase of $.0024 per therm. This represents
an increase of $0.24 on a residential customer’s heating
bill of 100 therms or 0.1%.
“Our investment in these new energy efficiency programs
will allow our customers to install high efficiency equipment
at a very low cost and obtain significant savings in their
energy costs over time,” explained Edward J. Graham,
president and CEO of South Jersey Gas. “Additionally,
the programs will provide a long-term benefit to our region
through the creation of jobs,” Graham added.
The first of the five new programs is designed to influence
purchases of heating equipment between now and 2010. SJG
will offer enhanced rebates of $900 for high efficiency heating
equipment purchases if customers agree to an in-home energy
assessment by a certified auditor. 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 financially eligible customers
an attractive financing package to assist in obtaining whole
house energy efficiency. If a qualified customer chooses
to install the measures recommended in a home energy assessment,
SJG, through a lending institution, will offer a financing
package of up to $20,000. With rebates from the NJ Clean
Energy Program and SJG, the customer will only be obligated
to pay back 25% of the loan over 10 years, interest free.
Customers who are not financially eligible will be encouraged
to take advantage of the program as well. They will only
be obligated to pay back 50% of the loan over 10 years, interest
free.
The third 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 (cogeneration)
system or an efficient distributed generation power plant
to generate electricity. A rate and contract mechanism also
will be designed to stabilize natural gas prices over a longer
period of time to mitigate price volatility. SJG will provide
a direct financial incentive to match NJ Clean Energy program
incentives.
The fourth program encourages commercial customers to implement
the NJ Clean Energy SmartStart Building program qualified
measures or improvements identified by the 2009 NJ Clean
Energy Direct Install program. SJG, through a lending institution,
will offer commercial customers whose electric demand is
not greater than 200 kilowatts per month, 0% financing for
up to $25,000 to install energy efficient gas reducing technologies,
less the NJ Clean Energy rebate received, for a 10-year period.
The final program is designed to generate savings for larger
commercial and industrial customers such as multifamily housing
complexes, institutions, schools, municipal complexes, medical
facilities, etc. Upfront financing options of up to $100,000
will be provided through this program. SJG will also offer
a financing package to encourage the installation of a whole
building approach to energy efficient technologies.
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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