Business & Finance
Business and Finance
Business and Finance
Wed, January 21, 2009 SJG Responds to NJ Economic Stimulus Program with Proposal for Major Infrastructure Investment Plan
FOLSOM, N.J.--([ BUSINESS WIRE ])--South Jersey Gas, a subsidiary of South Jersey Industries (NYSE:SJI), filed a petition yesterday with the New Jersey Board of Public Utilities for an initiative to create jobs in support of Governor Corzine's Economic Stimulus Plan, while also making the state's energy sources greener. SJG is proposing infrastructure improvement projects over the next two years totaling approximately $100 million that are incremental to SJG's normal capital programs scheduled for 2009 and 2010. These expenditures, which were otherwise planned to occur over the next five years, will be invested in projects designed to enhance the safety, reliability and capacity of SJG's natural gas delivery system on an accelerated basis.
"Governor Corzine and NJBPU President Jeanne Fox challenged SJG to not only develop initiatives to boost current economic activity in the state, but had the foresight to encourage actions that support future economic growth as well," stated Edward Graham, president and CEO of SJI. "Investing in utility infrastructure to provide safe and reliable service is a core competency of South Jersey Gas. We believe that accelerating this activity into 2009 and 2010 will provide excellent opportunities to expand the job market and economic development in the state while enhancing the reliability, safety and system integrity for SJG's customers," continued Graham. SJG's proposed investment is expected to create and support hundreds of jobs and provide a significant boost to the local economy.
An example of incremental infrastructure investments being proposed includes $26 million to accelerate SJG's replacement program for aging pipe originally scheduled for upgrade between 2011 and 2013. In addition to providing jobs and boosting general economic activity in southern New Jersey, the replacement of this pipe enhances our system's "green" aspect as modern piping is much more energy efficient.
The filing of this petition is a direct result of an intensive, collaborative process involving New Jersey utilities, state officials and consumer representatives to identify solutions to the problems at hand that make both immediate and long-term sense for all constituencies involved. In order for SJG to make additional investments of this magnitude, the petition allows SJG to earn a return of and a return on these specific infrastructure investments as the funds are spent. This program is expected to result in an increase in customer bills of approximately one half of one percent to the average customer's monthly bill. SJG's petition further specifies that it has agreed to file a full base rate case with the NJBPU during 2010. By that time, SJG expects to have made investments of over $380 million to its infrastructure since the completion of its last base rate case in 2004.
"We look forward to continuing our work with the NJBPU Staff, Rate Counsel and Governor's Office to develop and implement the initiatives in our petition that support of the Governor's Economic Stimulus Plan," stated Graham.
Forward-Looking Statement
This news release contains forward-looking statements. All statements other than statements of historical fact included in this press release should be considered forward-looking statements made in good faith by the Company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this press release words such as "anticipate", "believe", "expect", "estimate", "forecast", "goal", "intend", "objective", "plan", "project", "seek", "strategy" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions on an international, national, state and local level; weather conditions in our marketing areas; changes in commodity costs; the timing of new projects coming online; changes in the availability of natural gas; "non-routine" or "extraordinary" disruptions in our distribution system; regulatory, legislative and court decisions; competition; the availability and cost of capital; costs and effects of legal proceedings and environmental liabilities; the failure of customers, suppliers or business partners to fulfill their contractual obligations; and changes in business strategies. SJI assumes no duty to update these statements should actual events differ from expectations.
About South Jersey Industries
South Jersey Industries (NYSE:SJI) is an energy services holding company for utility and non-regulated businesses. A member of the KLD Global Climate 100 Index, SJI offers solutions to global warming through renewable energy, clean technology and efficiency. South Jersey Gas, one of the fastest growing natural gas utilities in the nation, strongly advocates the efficient use of energy while safely and reliably delivering natural gas in southern New Jersey. South Jersey Energy Solutions, the parent of SJI's non-regulated businesses, provides innovative, environmentally friendly energy solutions that help customers control energy costs. South Jersey Energy acquires and markets natural gas and electricity for retail customers and offers energy-related services. Marina Energy develops and operates energy projects including thermal facilities serving hot and chilled water for casinos, cogeneration facilities and landfill gas-to-electricity facilities. South Jersey Resources Group provides wholesale commodity marketing and risk management services. South Jersey Energy Service Plus installs, maintains and services heating, air conditioning and water heating systems, services appliances, installs solar systems and performs energy audits. For more information about SJI and its subsidiaries, visit [ http://www.sjindustries.com ].
