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ESG 2019 Annual Report

Community

Economic Development

SJI does more than contribute to the current economy – we work toward a sustainable future economy.

Economic Development

We’re committed to generating long-term value through operations, sustainable investments, mutually-beneficial partnerships and innovative relationships.

During 2019 these efforts included:

  • Disbursing more than $90.3 million in base salaries to 1,100 employees
  • Paying in excess of $20 million in federal and state taxes
  • Investing more than $750,000 in community support
  • Capital expenditures of $504.2 million
  • Purchasing more than $87.4 million of materials, services and equipment from minority-, service-disabled veteran, woman-owned businesses.

Capital Investments

The New Jersey Board of Public Utilities (NJBPU) has approved several capital investment programs in the last ten years to modernize the South Jersey Gas and Elizabethtown Gas distribution systems.

These investments help us to ensure our customers receive the service they expect and deserve.

AIRP, currently in its second phase, targets the replacement of aging cast iron and bare steel South Jersey Gas distribution infrastructure to ensure system reliability, while also reducing greenhouse gas emissions. Through 2019, South Jersey Gas has replaced 727 miles of main and restored 37,400 services. As a result of AIRP and AIRP II, South Jersey Gas expects to replace all remaining bare steel and cast iron in its system by 2021.

Improvements to enhance South Jersey Gas system reliability and resiliency in coastal communities continued last year through the second phase of the Storm Hardening and Reliability Program (SHARP). The first phase resulted in the replacement of 92 miles of main and the restoration of 11,090 services. Like the original initiative, SHARP II will further enhance and protect our infrastructure in advance of future significant weather events. Through 2019, SHARP II resulted in the installation of approximately 7,900 excess flow valves within the barrier island communities.

The Elizabethtown Gas Infrastructure Investment Program (IIP) – targeted at replacing vintage cast iron, bare steel, ductile iron, copper and vintage plastic mains and services – began on July 1, 2019. This $300 million, five-year program will replace approximately 250 miles of main. In 2019, from the commencement of the program on July 1 to the end of the calendar year, IIP resulted in the replacement of 24.18 miles of main and the restoration of 2,152 services.

SJI is a partner in the proposed $1.0+ billion PennEast pipeline project that will provide reliable and low-cost natural gas across New Jersey and Pennsylvania while reducing our region’s reliance on coal and oil. In turn, this critically important investment in our state’s energy future will also protect our environment by reducing air emissions and will bring more than 12,150 jobs to New Jersey and Pennsylvania.

Job Creation

SJI drives economic development in our region, creating jobs to support our growing business and strategic initiatives.

  • The PennEast pipeline project is expected to bring 12,150 direct and indirect jobs along its route across New Jersey and Pennsylvania
  • The South Jersey Gas headquarters in Atlantic City completed in 2018 brought more than 200 permanent jobs to the city
  • The SHARP II program, to enhance the South Jersey Gas system in coastal communities, will generate 413 jobs throughout its execution
  • The acquisition of Elizabethtown Gas brought dozens of jobs to New Jersey

Supplier Diversity

To become a leaner, more agile and efficient business, SJI follows a procurement model that ensures we are receiving the highest quality services at the best prices.

The model allows us to target the highest impact vendors and business lines, based on spend.

During 2019, our efforts remained focused on improving the way we source and track suppliers – including expanding our partnerships with qualified women-, minority- and veteran-owned businesses. We aim to consistently solicit a minimum of one qualified diverse supplier for each request for purchase issued by the business. To ensure vendors and suppliers were acquainted with our procurement practices, SJI hosted and attended events with new and existing suppliers throughout the year.

2019 Spending:

  SJI SJG ETG Totals
NJ Spend $31,728,579 $75,114,385 $48,700,569 $155,543,533
Diverse Spend $2,572,636 $36,520,307 $48,313,785 $87,406,728
Total Spend $229,483,185 $375,435,337 $198,873,566 $803,792,088