SJI traces its roots back to 1910 when Atlantic City Gas and Water Company merged with Atlantic City Gas Company. This was the first in a series of acquisitions that eventually created SJI’s subsidiary, South Jersey Gas in 1947, a regulated utility serving all or parts of the seven southern counties in New Jersey.
The new SJG headquarters was located in Atlantic City. During the 1950s, SJG continued to acquire smaller gas companies in Cumberland and Salem counties. SJG purchased its Cape May county division in 1983 from New Jersey Natural Gas.
In 1969, SJG’s board of directors and management decided to engage in other business lines that SJG could not participate in as a regulated utility. Thus, SJI was incorporated as a holding company and in 1970 SJG became its primary subsidiary.
In 1970, SJI built a new corporate headquarters in Folsom and over the next three decades bought and then sold several non-utility subsidiary companies.
In the mid-1980s, SJI created South Jersey Energy to participate in retail commodity sales opportunities created by deregulation of the natural gas industry.
At the end of the 1990s, SJI revised its strategic direction from being of a diversified holding company to one focused on energy and energy services. This new direction was taken to maximize long-term shareholder value.
With South Jersey Gas as a foundation and South Jersey Energy as a viable non-regulated business, SJI began expanding on the non-regulated side of its energy business forming South Jersey Resources Group in 1996 to provide natural gas storage, peaking services and transportation capacity for wholesale customers.
SJI welcomed the new millennium with the formation of Marina Energy in 2000 created to develop on-site energy production facilities that currently include thermal, combined heat and power, solar and landfill gas to electricity facilities. Marina’s first project was the construction of the Marina Thermal Energy facility in Atlantic City, which opened in 2003. Marina Thermal provides Borgata Casino Hotel & Spa’s heating, cooling and hot water needs in addition to electric generation.
In 2004, SJI transferred its highly successful appliance service business from South Jersey Gas to a new subsidiary, South Jersey Energy Service Plus, to operate in the non-regulated marketplace. SJESP services heating, air conditioning and water heating equipment in addition to performing energy audits.
After growing the non-regulated businesses from entrepreneurial start-ups to self-sustaining business lines, SJI created South Jersey Energy Solutions in 2006 as a holding company to consolidate the non-regulated companies to better facilitate their next stage of development and maximize profitability.
In 2007, Marina Energy and long-time business partner, DCO Energy formed Energenic LLC to extend the success both companies had achieved with on-site energy production facilities. Most recently Energenic completed an energy facility for Revel Resort in Atlantic City and has a large energy project under construction at Montclair State University. Energenic also acquired The Energy Network, LLC, holding company for TEN Companies, Hartford Steam Company and CNE Power I, LLC in Connecticut during 2012.
South Jersey Resources Group in 2008 entered into a lease agreement with an exploration and production company to develop deep mineral rights on property in the Marcellus Shale. Today, as one of the largest marketers of Marcellus gas, SJRG helps natural gas producers move gas from the wellhead to end users. SJRG also redeploys capital from its lease arrangement to acquire additional royalty interests in acreage throughout the Marcellus.
South Jersey Energy has expanded its portfolio of customers through acquisitions of Open Flow Energy in Pennsylvania and also by acquiring marketing books from Energy Mark in New York in 2010 and CenterPoint Energy in Pennsylvania in 2012.
The strategies developed over a decade ago to realize SJI’s vision have produced strong and consistent earnings growth and shareholder returns. The years to come are certain to be exciting and challenging as SJI and its subsidiaries enter into new projects, products and investments that grow our company and advance our energy strategy.