Folsom, NJ - South Jersey Gas, subsidiary of South Jersey Industries (NYSE:SJI), announced today that the company has eliminated all its low pressure natural gas distribution systems in Atlantic City. This work was completed as part of the company's Storm Hardening and Reliability Program. After Superstorm Sandy, the New Jersey Board of Public Utilities encouraged the state's utilities to propose programs that would build greater resiliency into their systems in the aftermath of major weather events. Through this program, SJG has replaced approximately 36 miles of low pressure main, 11 district regulator stations, and 5,000 services within the city.
"The BPU's approval of SHARP last summer allowed us to take significant, proactive measures to improve the reliability of our existing system in Atlantic City," said Jeffrey E. DuBois, president of South Jersey Gas. "The foresight of the BPU and its dedication to improving infrastructure along the barrier islands will ensure that our system is more resilient against future storms affecting our community."
SJG focused on upgrading lower operating pressure distribution systems, which are susceptible to water intrusion during significant flooding events, to more modern higher pressure systems. By upgrading this infrastructure and associated operating pressures, the company will ensure the continued operation of its infrastructure during and after a major storm event.
SJG will continue its SHARP program and commitment to enhancing infrastructure in the barrier islands as work moves south through Ventnor, Margate, Longport, Ocean City, Wildwood, North Wildwood, Wildwood Crest and Cape May over the next two years. In total, SJG expects to replace about 93 miles of natural gas mains and approximately 11,100 associated services during the course of this initiative.
Costs associated with SHARP are recovered through annual adjustments to SJG base rates on October 1 of each year of the program. It's important to note that consistently low 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 infrastructure investments made by SJG in recent years. This abundance of supply has contributed to residential customer bills currently being, on average, about 30 percent lower than they were 10 years ago.
About South Jersey Gas
South Jersey Gas, subsidiary of energy services holding company South Jersey Industries (NYSE:SJI), provides natural gas service to approximately 369,000 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.