SJG Files to Extend Infrastructure Investment Program

South Jersey Gas filed a petition with the New Jersey Board of Public Utilities today to extend its Capital Investment Recovery Tracker. The program, which originally began in 2009, helps to accelerate planned capital expenditures that enhance the delivery of safe and reliable service and creates jobs. The program extension is consistent with Governor Christie’s focus on bolstering economic growth in New Jersey.

"Since the implementation of our CIRT program in 2009, South Jersey Gas has invested over $120 million in incremental improvements to our natural gas system,” said Edward J. Graham, chairman, president and CEO of South Jersey Industries, SJG’s parent company. "Not only has this investment enhanced the performance and safety of our system, but it has created jobs and supported the local economy at a very difficult time. The extension of the CIRT program will enable us to continue to provide these benefits to our customers and the communities we serve. We look forward to continue working with the NJBPU and the Division of Rate Counsel to create jobs in our state,” continued Graham.

John F. Kiely, one of SJG’s CIRT contractors said, "SJG’s CIRT program has allowed unskilled workers to acquire a skill set or sets that provide them with career capital, which, in the long run, makes them more employable in the future and, at the same time, creates a more skilled workforce for the State of New Jersey.”

SJG would be able to recover the costs associated with these improvements through rate adjustments. As part of the program, SJG is able to earn a return of and a return on these infrastructure investments.

The company is proposing to spend an incremental $50 million a year in 2012 and 2013 to complete pipeline system improvements. The program is expected to result in an initial increase of approximately one percent to the average residential customer’s monthly bill, which would not take place until after 2012. For a customer using 100 therms of gas in a month that increase translates into $1.22 per bill. SJG expects gas costs to remain stable or to decrease in the near term due to the availability of Marcellus Shale gas, which could offset this increase. New, lower rates put in place just last week are saving residential customers on average 3.4 percent on their bills, which have not been this low since 2003.

South Jersey Gas, subsidiary of energy services holding company South Jersey Industries (NYSE:SJI), provides natural gas service to more than 349,000 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.