NJBPU Approves BGSS Increase for South Jersey Gas

South Jersey Gas today received approval from the New Jersey Board of Public Utilities for an increase to its Basic Gas Supply Service rate. The BGSS clause serves as a method to pass along increases and decreases in wholesale gas costs to customers. As South Jersey Gas makes no profit on the sale of the natural gas commodity itself, it likewise will make no profit from this rate adjustment.

SJG will increase its BGSS rate by 9.2% which translates into an annual increase of approximately $141.30 to an average residential customer’s bill. Although this rate adjustment is an increase, it is a reduction from SJG’s original request to the NJBPU for an 18.2% increase made in June 2008.

"Since the spring of 2008, when we prepared our original request to the NJBPU, we have seen significant decreases in wholesale gas prices. We are pleased to reflect these lower prices in the BGSS rates approved today,” stated Edward J. Graham, SJG’s president.

"Because of our prudent purchasing practices and our Conservation Incentive Program, we can shelter our customers from the full impact of increased wholesale prices,” stated Graham. "Even with this rate increase, natural gas may cost up to 35% less than other heating sources,” Graham added.

Graham continued, "We’ve worked closely with our regulators throughout the filing process, and we’ve shared their goal of minimizing the impact of rising energy costs on our customers. We monitor natural gas prices daily and continually work to identify opportunities to purchase natural gas supplies at the lowest possible cost. We have the ability to give our customers a credit if prices fall and in such as case we will exercise this option as we have in the past.”

During the past two years SJG has reduced its BGSS rate to its customers, resulting in customer savings of $36.7 million. Also, since the inception of SJG’s Conservation Incentive Program in October 2006, customers have saved $50 million through efficient use of natural gas.

South Jersey Gas and the Board of Public Utilities are emphasizing the critical need for conservation and energy efficiency. Conservation is an essential component in saving money on energy bills. Using recommended conservation measures will allow customers to remain comfortable in their homes and save up to 30 percent on home heating bills.

South Jersey Gas and the New Jersey Board of Public Utilities recommend the following energy and money saving tips:

• Use ceiling fans. Using ENERGY STAR qualified ceiling fans can help cool your home without greatly increasing electricity use. Ceiling fans also improve airflow and create pleasant breezes. Make sure to turn them off when you are out of the room.
• Use a programmable thermostat. A home doesn’t need to be chilled all day to be comfortable, so save energy and money by installing an ENERGY STAR qualified, programmable thermostat to regulate cooling and heating systems. Save 3 percent on energy costs for each degree you set your thermostat higher than 72 degrees on your window unit or central air conditioner.
• Light homes with a cooler bulb. ENERGY STAR qualified lighting produces 75 percent less heat, uses 75 percent less energy and lasts up to 10 times longer than a standard incandescent bulb. One ENERGY STAR qualified compact fluorescent light bulb saves $65 and reduces carbon dioxide emissions by almost 700 pounds over its lifetime.
• Save up to 16 percent by using less hot water. Take short showers instead of baths, and lower your hot water heater from 150 degrees to 120 degrees. You can also use the BPU’s Water Heater Calculator – found at www.NJCleanEnergy.com - to learn how much you can save with an energy-efficient water heater.
• Take a free online Home Energy Analysis at www.NJCleanEnergy.com, or call 1-866-NJSMART (1-866-657-6278). With just a few clicks of your mouse, you will find specific energy-saving recommendations customized to your lifestyle, energy usage and location.

There are a number of programs available for households having trouble paying their utility bills. Call the numbers associated with each program for further information, or contact the NJBPU Division of Customer Assistance at 1-800-624-0241.

• Comfort Partners. This program is designed to improve energy affordability through direct installation of free energy efficiency measures and education about conservation tips to save money. Recipients of these free services must have income at or below 175 percent of the Federal Poverty Level, or can be enrolled in the Universal Service Fund Program, the Lifeline Program and/or Pharmaceutical Assistance to the Aged and Disabled. For more information on Comfort Partners, please call 1-888-773-8326.

• Universal Service Fund. The NJBPU created the Universal Service Fund program to help make energy bills more affordable for low-income customers (households with an income at or below 175 percent Federal Poverty Level). USF covers a portion of household energy bills for amounts beyond 3 percent of annual gross household income for electricity and gas. If a household heats with electricity, USF covers the portion of the electric bill that is over 6 percent of annual household income. USF credits are capped at $1,800 per household per year. First time USF enrollees with significant arrearages also have an opportunity to earn forgiveness for overdue balances that accrued prior to their enrollment in USF. The New Jersey Department of Community Affairs administers the USF program. Applications are accepted at any time of the year. For an application or more information on USF, please visit www.energyassistance.nj.gov or call the USF Hotline toll free at: 1-866-240-1347.
• Lifeline Program. Lifeline is a program that offers $225 to seniors and the disabled who meet the PAAD eligibility requirements or who receive Supplemental Security Income. This includes utility customers as well as tenants whose utility bills are included in their rent. Lifeline benefits are provided for only electricity and natural gas. Approximately 314,000 people received more than $70 million in Lifeline benefits last year. Lifeline is administered by the Department of Health and Senior Services. For more information on Lifeline, please call 1-800-792-9745.
• NJ SHARES. NJ SHARES is a non-profit corporation organized to provide assistance to individuals and families living in New Jersey who are in need of temporary help in paying their energy bills. To qualify for NJ SHARES, a person or family must be facing a financial crisis and not be eligible for welfare or energy assistance programs. Recipients must also have a history of good-faith payments of their utility bills. Upon approval, recipients may receive a one-time grant of up to $700 for gas and $300 for electricity, or $700 for an all-electric home. Please call NJ SHARES at 1-866-657-4273 or visit www.njshares.org.

To help manage natural gas bills and avoid high spikes in winter heating season costs, SJG customers can sign up for the Equal Payment Plan. For EPP customers SJG divides their annual bill into 12 equal monthly payments, with an adjustment or settle-up in the final month. "We urge all eligible customers to take advantage of our free Equal Payment Plan,” Graham said. "It is a great tool that allows customers to know exactly how much their bill will be each month, and helps them adjust their budgets accordingly.” SJG customers can visit http://www.southjerseygas.com to enroll in the Equal Payment Plan or contact the Customer Care Center at 888-766-9900.

South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to over 335,000 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.sjindustries.com to learn more about South Jersey Gas and its programs.

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