(Source: Business Wire)
The New Jersey Board of Public Utilities today approved a proposal by South Jersey Gas, a subsidiary of South Jersey Industries (NYSE:SJI), that will create jobs and strengthen the local economy in support of Gov. Corzine's Economic Stimulus Plan, while also providing customers with new, energy efficiency program incentives that will result in reduced energy bills.
The initiative involves implementation of five programs over the next two years totaling over $17 million that are incremental to the company's Conservation Incentive Program. The CIP, a form of decoupling approved by the NJBPU in October 2006 allows for SJG to advocate for energy efficiency without adversely impacting income. The new energy efficiency programs will allow SJG to earn a return of, and a return on, these investments.
The cost of the energy efficiency programs is expected to result in a minimal increase of $.0024 per therm. This represents an increase of $0.24 on a residential customer's heating bill of 100 therms or 0.1%.
"Our investment in these new energy efficiency programs will allow our customers to install high efficiency equipment at a very low cost and obtain significant savings in their energy costs over time," explained Edward J. Graham, president and CEO of South Jersey Gas. "Additionally, the programs will provide a long-term benefit to our region through the creation of jobs," Graham added.
The first of the five new programs is designed to influence purchases of heating equipment between now and 2010. SJG will offer enhanced rebates of $900 for high efficiency heating equipment purchases if customers agree to an in-home energy assessment by a certified auditor. 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 financially eligible customers an attractive financing package to assist in obtaining whole house energy efficiency. If a qualified customer chooses to install the measures recommended in a home energy assessment, SJG, through a lending institution, will offer a financing package of up to $20,000. With rebates from the NJ Clean Energy Program and SJG, the customer will only be obligated to pay back 25% of the loan over 10 years, interest free. Customers who are not financially eligible will be encouraged to take advantage of the program as well. They will only be obligated to pay back 50% of the loan over 10 years, interest free.
