South Jersey Gas Seeks Almost 20 Percent Rate Hike

FOLSOM — South Jersey Gas is seeking an almost 20 percent rate hike, which will add about $227 to the average residential customers natural gas bill in the next year.
South Jersey Gas (SJG) has filed with the state Board of Public Utilities for an increase in its basic gas supply service rate. If approved, the rate increase would take effect Oct. 1.
In a press release, SJG said since the fall of 2007, its wholesale natural gas prices have increased by 48 percent.
“Increases in wholesale natural gas prices are forcing New Jersey’s natural gas utilities, and others across the nation, to seek rate increases to recoup these costs. As South Jersey Gas makes no profit on the sale of the natural gas commodity itself, it likewise will make no profit from this rate adjustment,” noted the press release.
The statement said SJG’s customers would only pay a small portion of that increase.
“Because of our prudent purchasing practices and our Conservation Incentive Program, we can shelter our customers from the full impact of increased wholesale prices,” stated Edward J. Graham, SJG’s president.
“Even with the proposed rate increase, natural gas will be nearly 40 percent less expensive than other heating sources, such as propane, oil or electricity,” Graham added.
South Jersey Gas also filed its annual Conservation Incentive Plan (CIP), requesting a 1.5 percent increase, or an additional $19 per year to the average residential customer.
A public hearing on the rate increase will be held Aug. 20 at 7 p.m. at the lecture hall of Voorhees Middle School, Holly Oak Drive in Voorhees. The public is invited to make statements at the hearing.
Written comments may be sent to: Kristi Izzo, Secretary, New Jersey Board of Public Utilities Two Gateway Center, Newark, NJ 07192.
If you used 100 therms of natural gas in May, your bill would have been $153. As of Oct. 1, you would see an increase of $30 per month for a total of $183 for the same amount of gas.
By Feb. 2009, that rate would increase from $183 to $202 or another $18.
Usage of 100 therms would cover a home an average size home no larger than 1,500 square feet. A larger home will consume more than 100 therms.
SJG serves over 335,000 customers in Atlantic, Cape May, Cumberland, Salem and large portions of Gloucester, Burlington and Camden counties. In the first quarter of this year, SJG reported net income at $25 million, a 3 percent increase over the $24.3 million produced in the same quarter last year.
The state Bureau of Public Utilities Division of Customer Assistance had several programs to help households having trouble paying their utility bills. For more information, call 1-800-624-0241.