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May 31, 2013
SOUTH JERSEY GAS FILES TO REDUCE RATES BY 4.5%
FOLSOM, N.J. - South Jersey Gas today proposed a rate reduction that would save residential customers an average of 4.5 percent on their natural gas bills.
SJG has filed petitions with the New Jersey Board of Public Utilities that will lead to an overall decrease of approximately $5.94 on an average 100-therm monthly natural gas bill. This filing follows a series of other reductions to customers' bill costs over the past two years, including a 3.4 percent rate reduction granted in September 2011 and a 1.8 percent rate reduction granted in September 2012. In addition, SJG issued customers two Basic Gas Supply Service bill credits for $23 million and $20 million in April 2011 and December 2011, respectively, and an additional Basic Gas Supply Service bill credit for $10 million in January 2013.
"With wholesale gas prices remaining consistently low, we're pleased to continue passing on that benefit to our customers and to offer another overall rate reduction," said Jeffrey E. DuBois, president of South Jersey Gas. "In all, customer bills today are as low as they've been in a decade, so in terms of value we're unaware of any other energy product that's as comparatively low priced over that duration."
The three components of the filing that led to the rate reduction include:
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The Basic Gas Supply Service petition, which proposes to maintain the company's existing BGSS rate, currently the lowest of any natural gas distribution company in New Jersey. The BGSS clause serves as a method to pass along increases and decreases in gas costs directly to customers without affecting SJG's income.
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The Conservation Incentive Program petition, which proposes a rate decrease of $6.32 or 4.8 percent, to an average 100-therm monthly residential bill. The CIP program encourages customers to use natural gas more efficiently, reduce consumption and also adjusts customer bills to account for weather related changes in usage. Since the CIP was instituted in 2006, SJG's customers have reduced their natural gas use by 33 billion cubic feet and have saved $382 million in energy costs.
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The Energy Efficiency Tracker petition, which proposes a rate increase of $0.38, or 0.3 percent, to an average 100-therm monthly residential bill. SJG's EET initiatives provide a broad range of incentives designed to enable residential, commercial and industrial natural gas customers to lower their energy bills through participation in State-approved programs.
"Switching your home to natural gas from oil, propane or electric today can produce annual savings of 60 to 70 percent off of your heating costs," said DuBois. "This is the best time of year to switch to natural gas so system installation can be completed prior to the winter heating season."
South Jersey Gas, subsidiary of energy services holding company South Jersey Industries (NYSE:SJI), provides natural gas service to over 357,000 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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