SJG TO PROVIDE $20 MILLION BILL CREDIT TO CUSTOMERS
FOLSOM - South Jersey Gas has notified the New Jersey Board of Public Utilities that it will provide a bill credit of approximately $20 million to its residential and small commercial customers. This means an average residential customer who buys their natural gas from SJG will receive a credit of approximately $58 on their January bill. SJG is able to offer the BGSS bill credit as a result of consistently lower wholesale natural gas prices and the overall management of the company’s gas supply portfolio.
This bill credit is in addition to an overall rate reduction of 10.3 percent that was approved by the NJBPU and took effect in early October. That reduction was primarily driven by decreases to the company’s Basic Gas Supply Service and Conservation Incentive Program rate components.
“With the availability and close proximity of Marcellus Shale gas to our service area, wholesale natural gas prices have steadily declined and remain low, providing us with the ability to offer this bill credit to our customers. We’re very pleased that we are able to provide our customers a reduced bill during a colder month when heating costs tend to be higher due to increased usage,” said Jeffrey E. DuBois, president of South Jersey Gas.
The BGSS clause serves as a method to pass along increases or decreases in gas costs to customers; therefore, SJG’s income is not affected by BGSS rate adjustments or credits.