2013-02-20 19:12:44 -
For Immediate Release
Phone: 609-561-9000
Investor Relations Contact: Stephen Clark x4260
Media Contact: Dan Lockwood x4108
February 20, 2013
SJG Receives NJBPU Approval for Accelerated Infrastructure Replacement Program
Folsom, NJ - The New Jersey Board of Public Utilities today approved a proposal
by South Jersey Gas, subsidiary of South Jersey Industries (NYSE:SJI), to
implement its Accelerated Infrastructure Replacement Program, which will
continue SJG's work to bolster the safety and reliability of its natural gas
system.
"In the past four years, SJG has spent approximately $200 million to enhance our
natural gas delivery system, in turn creating jobs and supporting the local
economy," said Jeffrey E. DuBois, president of South Jersey Gas. "This approved
program, which focuses on the elimination of bare steel and cast iron main
within our system, is the natural extension of
our ongoing efforts to advance
the safety and reliability of our infrastructure," added DuBois.
Based on the approved Accelerated Infrastructure Replacement Program, SJG will
complete infrastructure improvement projects over the next four years totaling
approximately $140 million that are incremental to the company's normal capital
projects scheduled over that time period. SJG will spend approximately $35
million per year to perform this work and will be able to earn a return on these
infrastructure investments as the funds are spent.
Customers will not see any impact to rates as a result of these investments
until SJG's next base rate case. Declining natural gas prices, resulting from
the dramatic increase in gas supplies from shale formations such as the
Marcellus, have helped offset the rate impact of accelerated infrastructure
investments made by SJG to date.
In fact, over the past three years, SJG customers have seen reductions in their
bills due to lower gas prices, including a 10.6 percent Basic Gas Supply Service
rate reduction granted in 2010, a 3.4 percent rate reduction granted in 2011,
and three Basic Gas Supply Service bill credits for $23 million in April 2011,
$20 million in December 2011 and $10 million in January 2013.
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), a member of the MSCI Global Climate Index,
offers solutions to climate change and helps customers control energy costs.
South Jersey Gas, one of the nation's fastest growing natural gas utilities,
delivers clean, efficient natural gas and promotes energy efficiency to
customers in southern New Jersey. SJI's non-regulated businesses, under South
Jersey Energy Solutions, promote efficiency, clean technology and renewable
energy by developing and operating on-site energy production facilities;
acquiring and marketing natural gas and electricity for retail customers;
providing wholesale commodity marketing and risk management services; and
offering HVAC and other energy-efficiency related services. For more information
about SJI and its subsidiaries, visit
www.sjindustries.com.
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Source: South Jersey Industries via Thomson Reuters ONE
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