Business & Finance
Business and Finance
Business and Finance
Wed, January 28, 2009
Tue, January 27, 2009 SJG Responds to NJ Economic Stimulus Program with Proposal for an Energy Efficiency Program
FOLSOM, N.J.--([ BUSINESS WIRE ])--South Jersey Gas, a subsidiary of South Jersey Industries (NYSE:SJI), filed a petition January 23, 2009 with the New Jersey Board of Public Utilities for an initiative that will encourage energy efficiency, create "green" jobs and strengthen the local economy.
"This filing is phase two of SJG's initiative to support Governor Corzine's Economic Stimulus Plan. The Governor and NJBPU President Jeanne Fox requested that SJG include energy efficiency and conservation measures as essential elements in all future energy planning to help the state reduce greenhouse gas emissions by 2020," stated Edward J. Graham, president and CEO of SJI.
SJG is proposing an Energy Efficiency Tracker to implement five energy efficiency programs during the next two years totaling over $17 million that are incremental to the company's Conservation Incentive Program offerings. The Conservation Incentive Program, a form of decoupling approved by the NJBPU in October 2006 allows SJG to advocate for energy efficiency without adversely impacting income. The current EET filing was made under New Jersey's Regional Greenhouse Gas Initiative legislation, which encourages utilities to invest in conservation and energy efficiency programs as part of their regulated business.
"We believe an investment in energy efficiency programs will have a long-term benefit for not only our customers but for all residents in our region through the creation of jobs. Our proposed programs will allow residential, commercial and industrial customers to lower their energy bills through their participation," added Graham.
The first of the five new programs is designed to influence purchases of heating equipment between now and 2010. SJG would offer enhanced rebates of $900 for high efficiency heating equipment purchases if customers agree to an in-home energy assessment. After the assessment, customers will have an option of selecting up to $1,000 worth of free air sealing in cooperation with the NJ Clean Energy Program.
Program two involves offering eligible customers an attractive financing package to assist in obtaining whole house energy efficiency. Through rebates from the New Jersey Clean Energy Program customers would ultimately be responsible to repay just 25% of the loan to the financing agent over 10 years, interest free.
The third program will reduce the environmental footprint and energy consumption of small businesses. The program calls for an energy assessment of a facility and installation of energy saving measures with the customer responsible for paying just 20% of the financing via a monthly bill over 120 months interest free.
A program for larger commercial and industrial customers is being developed that will generate energy savings for entities such as multifamily housing complexes, institutions, schools, municipal complexes, medical facilities, etc. Upfront financing options of up to $100,000 will be provided to install energy efficient technologies, devices and related equipment.
The final program complements the goals of the NJ Energy Master Plan to reduce energy consumption and carbon emissions by lowering dependence on the electric grid system. This program provides incentives for large commercial and industrial customers to install a combined heat and power system or an efficient distributed generation power plant.
In addition to this energy efficiency petition, SJG filed a petition on January 20, 2009 for accelerated infrastructure improvements. The programs related to infrastructure improvements and energy efficiency are 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. Both petitions also provide for SJG to make investments in its infrastructure and energy efficiency projects and earn a return on, and a return of, those investments. SJG's infrastructure 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.
The cost of the energy efficiency programs is expected to result in an increase of $0.0003 per therm. This represents an increase of $0.30 on a residential customer's heating bill of 100 therms or 0.2%.
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. 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 energy efficiency 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 on-site energy projects. South Jersey Resources Group provides wholesale commodity marketing and risk management services. South Jersey Energy Service Plus installs, maintains and services residential and commercial heating, air conditioning and water heating systems, services appliances, installs solar systems, provides plumbing services and performs energy audits. For more information about SJI and its subsidiaries, visit [ http://www.sjindustries.com ].
