Folsom,
NJ – South Jersey Gas today proposed a rate reduction that would save residential customers on average 10.3 percent on their gas bills.
SJG filed its Basic Gas Supply Service petition with the New Jersey Board of Public Utilities, proposing a rate decrease of $15.11 on a 100-therm monthly natural gas bill, or 10.6 percent, for the average residential heating customer. The company also filed its annual Conservation Incentive Program petition, requesting a $0.47, or 0.3 percent rate increase. Combined with the BGSS reduction, a residential heating customer would see net savings of $14.64 on a 100-therm monthly natural gas bill.
“When the rate reduction goes into effect, a homeowner who switches to natural gas from oil or propane would realize considerable savings. Based on regional pricing, a customer would see approximately 30 percent annual savings over oil and 50 percent over propane,” said South Jersey Gas President and CEO, Edward J. Graham. “The summer is an ideal time to switch to natural gas as the installation will be completed prior to the start of the winter heating season.”
The BGSS clause serves as a method to pass along increases and decreases in gas costs directly to customers without affecting SJG’s income.
Lower wholesale gas prices coupled with effective gas supply portfolio management resulted in SJG’s ability to lower rates. “We monitor natural gas prices daily and were able to secure lower priced gas, giving us the ability to provide a rate reduction this year,” Graham added. “In November 2009, SJG began using an innovative auction style program that helps us regularly purchase supplies of natural gas at the lowest available price for our customers.”
In October 2006, the NJBPU approved SJG’s pilot CIP program, which encourages customers to use natural gas more efficiently by educating them about measures they can take to reduce consumption. The program also benefits investors by eliminating the link between the company’s profits and the quantity of natural gas it sells. Since the inception of the CIP program, customers have saved approximately $166 million.
South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to more than 343,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and significant portions of Gloucester, Burlington and Camden counties in New Jersey. Visit www.southjerseygas.com to learn more about South Jersey Gas and its programs.
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