Folsom,
NJ – South Jersey Gas received approval
today from the New Jersey Board of Public Utilities to extend
its Conservation Incentive Program for up to four years.
The CIP is designed to encourage conservation while protecting
the company from the financial impact of lost sales. The
extension has no immediate impact on current rates charged
by SJG. By design, the CIP does not create rate increases
for SJG customers. As in the past, any increase in the CIP
rate must be accompanied by an equivalent reduction in the
Basic Gas Supply Service rate, which is the mechanism to
pass through commodity costs to customers.
In October 2006, the NJBPU approved SJG’s pilot CIP
program, which encourages customers to use natural gas more
efficiently by educating them about measures they can take
to reduce natural gas consumption. The program also benefits
investors by eliminating the link between the company’s
profits and the quantity of natural gas it sells. From October
2006 through September 2009, customers reduced their natural
gas usage by a total of 10.4 billion cubic feet, which is
enough gas to heat over 130,000 homes annually. The reduce
usage enabled customers to save approximately $123.6 million
and $39 million of SJG’s net income was protected.
“Since its inception, SJG has implemented conservation
programs designed to aid customers in reducing the cost of
their natural gas bills,” said SJG President and CEO
Edward J. Graham. “As a result of the CIP, SJG has,
and will continue to, promote and embrace a conservation-oriented
corporate culture,” Graham added.
South Jersey Gas is the principal subsidiary of South
Jersey Industries (NYSE:SJI) and provides natural gas service to
approximately 342,000 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.southjerseygas.com to learn
more about South Jersey Gas and its programs.
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