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South Jersey Industries : NJBPU Approves Rate Changes for South Jersey Gas(Thomson Reuters ONE Via Acquire Media NewsEdge) FOR IMMEDIATE RELEASE MEDIA CONTACT: JOANNE BRIGANDI, x4240 IR CONTACT: MARISSA TRAVALINE, x4227 PHONE: 609-561-9000 SEPTEMBER 30, 2014 NJBPU Approves Rate Changes for South Jersey Gas FOLSOM, N.J. - The New Jersey Board of Public Utilities today approved changes to several of South Jersey Gas' rate mechanisms. These rate changes are being driven by investments focused on improving safety, reliability and service for customers and also by unusual spikes in natural gas prices due to the harsh weather conditions experienced in the Northeast last winter. A typical residential customer will see an increase of $8.44 on a monthly bill. Even with this increase, total annual customer bills will be lower than they were 10 years ago. Over the past several years, SJG has provided a number of rate decreases and over $50 million in bill credits to customers due to lower natural gas prices. The change in rates resulted from two primary components. First, the BPU approved a base rate increase driven by SJG's investments in utility infrastructure made to ensure the continued safety and reliability of its gas delivery system, and for investments in information technology systems that will provide higher levels of service to customers. The value of the substantial investments SJG has made in its natural gas delivery system can be seen in its performance. SJG experienced no significant service issues or interruptions to customers during several major storm events and one of the coldest winters in recent history. The second primary component of the rate increase is the Basic Gas Supply Service charge, which is a direct pass through of natural gas costs to customers. SJG makes no profit on the sale of the natural gas commodity itself. The need to increase the BGSS rate was caused by unusually high demand from this year's extreme winter weather and unprecedented spikes in natural gas prices in the Northeast market area. Offsetting the increases were decreases in two rates - the Conservation Incentive Program and the Societal Benefits Clause. The CIP decrease is mainly the result of SJG's weather adjustment mechanism, through which SJG returns money to its customers that was collected as a result of higher usage during extremely cold winters. The SBC decrease is related to state mandated programs and activities involving remediation of former Manufactured Gas Plant sites; the NJ Clean Energy Program; and the NJ Universal Service Fund Program. SJG does not earn a profit on costs related to the SBC programs. "The safety and reliability of our delivery system is vital to ensuring that our customers receive secure, dependable, uninterrupted natural gas service, especially in light of the impacts New Jersey saw from Super Storm Sandy," stated Jeffrey E. DuBois, SJG's president. "Secondary to safety is our ability to support population growth and the economy in southern New Jersey. By reinforcing and expanding natural gas infrastructure in our region we are creating jobs and can support new, lower cost, gas-fired electric generation," DuBois added. SJG encourages low-income or fixed-income customers who need help paying their utility bills to visit SJG's website www.southjerseygas.com for information on budget billing and assistance programs such as the TRUE Program, NJ Shares, Home Energy Assistance or Lifeline. In addition, all customers can find valuable information about energy audits, energy efficiency tips and options to reduce their energy use and costs, while retaining comfort. South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to about 365,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and portions of Gloucester, Burlington and Camden counties in New Jersey. ### This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: South Jersey Industries via GlobeNewswire [HUG#1859820] |