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CONTACT: JOANNE BRIGANDI
TELEPHONE: (609) 561-9000 x4240
DATE: December 19, 2003
SJE Wins Bid To Supply Electricity To Central
and N. Jersey School Districts
Competitive Bidding Process Saves School Board $5.9 Million
FOLSOM, N.J. -- Proving that the competitive bidding process works in the energy industry, the New Jersey School Board Association will save nearly $5.9 million over the next 19 months on the cost of electric supply for over 400 Central and North Jersey school districts. South Jersey Energy a Folsom, New Jersey based energy- management company and the state’s largest energy marketer was the successful bidder for less costly electric generation in a search conducted by the Alliance for Competitive Energy Services (ACES). Under terms of the contract SJE, a subsidiary of South Jersey Industries [NYSE:SJI] will supply all of the energy electric requirements for the ACES member school districts located in the service territories of Public Service Electric & Gas and Jersey Central Power & Light through May 2005. The agreement provides much needed electric price stability in a volatile energy market.
“The competitive bidding process works,” said SJE Vice President Michael Renna. “While some have expressed doubt that a competitive electric market can work in this state, the $5.9 million savings resulting from this agreement is evidence to the contrary. Competition is good for the energy industry, but more importantly it is good for the ratepayers, taxpayers and businesses of New Jersey.”
In a statement released by Gabel Associates and the New Jersey School Board Association, Edwina Lee, executive director of the New Jersey School Board Association echoed Renna’s sentiments “The contract awarded to South Jersey Energy represents a win for taxpayers and for our public schools. We will be able to use the $5.9 million in overall energy savings to enhance education and services for all of our children.”
ACES, the Alliance for Competitive Energy Services is a joint energy-purchasing program for schools sponsored by the New Jersey School Boards Association, the New Jersey Association of School Business Officials and the New Jersey Association of School Administrators.
Gabel Associates is an energy, environmental and public utility consulting firm that has been retained and authorized by ACES to administer the ACES electric generation service aggregation program.
“We are pleased to assist the New Jersey School Board Association in its ongoing initiative to save money on its energy costs while continuing to provide our children with quality educational services” said Renna. SJE is fully hedged against price fluctuations in the energy sector for both of these contracts having already purchased a block of energy to fulfill the terms of the agreement. PSE&G Energy Resources & Trade LLC is the energy wholesale supplier for both contracts. The contract with NJSBA is expected to generate nearly $69 million in revenue for SJE.
South Jersey Energy is a licensed, deregulated energy supplier for commercial, industrial and more than 85,000 residential customers. SJE acquires and markets natural gas and electricity to retail end users and provides total energy management services to help commercial and industrial facilities reduce their overall energy costs.
For more information about South Jersey Energy and its energy holding company South Jersey Industries, please visit our website at www.sjindustries.com.
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