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Telephone: (609) 561-9000
Media Contact: Joanne Brigandi
Investor Relations Contact: Stephen Clark x4260
FOLSOM, N.J. -- South Jersey Gas filed a petition today with the New Jersey Board of Public Utilities to decrease its Basic Gas Supply Service rate. Based on 100 therms of consumption, the monthly bill decrease for a residential customer purchasing natural gas during a winter month from SJG would be 3.8%. This translates into a decrease of $6.48 per month from $171.66 to $165.18 for those customers. If approved, the decrease would take effect October 1, 2006.
Wholesale natural gas prices had spiked last winter due to the impacts of hurricanes Katrina and Rita on natural gas production in the gulf coast. SJG pays those wholesale prices and is permitted by the NJBPU to pass those costs on to customers.
“We know the unusually high cost of energy last winter presented a challenge to many of our customers,” stated Edward J. Graham, president and CEO of South Jersey Gas. “We’re pleased that we are now in a position to lower their energy bills with this rate decrease.
“Since last winter natural gas prices have gradually decreased and our filing is based on projections that natural gas prices will be lower during the upcoming winter than they were last year. In addition, we’re aggressively seeking opportunities to reduce gas costs by restructuring our gas supply portfolio, while continuing to provide high quality gas service,” Graham added.
Also, with a goal of further reducing customers’ bills SJG has proposed innovative programs to its regulators that will encourage conservation. If approved, these proposals could provide continued reductions to BGSS rates in future years.
South Jersey Gas makes no profit on the sale of the natural gas commodity itself and passes along what it pays directly to customers through the Basic Gas Supply Service clause.
South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to over 322,000 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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