South Jersey Industries :South Jersey Gas Files with NJBPU to Extend Accelerated Infrastructure Replacement Program

For Immediate Release                                
Phone: 609-561-9000
Investor Relations and Media Contact: Marissa Travaline x4227
email: mtravaline@sjindustries.com

March 9, 2016

South Jersey Gas Files with NJBPU to
Extend Accelerated Infrastructure Replacement Program

FOLSOM, N.J. - South Jersey Gas has filed a petition with the New Jersey Board of Public Utilities for approval to continue its Accelerated Infrastructure Replacement Program (AIRP). The petition also includes a proposed adjustment to base rates that will allow the utility to recover AIRP investments made through September 2016.

"Beginning with our first program in 2009, SJG has worked under the guidance of the NJBPU to reinforce the safety and reliability of our system through the accelerated replacement of bare steel and cast iron main," said Jeffrey E. DuBois, president of South Jersey Gas. "As a result of this proactive approach, we've already been able to replace 500 miles of main and over 23,600 services; and we look forward to continuing that progress with an extension of the AIRP that will allow us to further enhance the safety and reliability of our system."

Pending approval of this filing, SJG would continue its accelerated infrastructure replacement for an additional seven years, investing roughly $500 million to improve its distribution system.  These improvements would include the retirement and replacement of bare steel and cast iron mains, bare steel services, and other aging infrastructure, with more durable plastic pipe.   This will also enable SJG to install Excess Flow Valves (EFVs) in all service lines renewed under AIRP, a safety enhancement that automatically shuts off the flow of gas in the event of damage.

"Consistently low natural gas prices, resulting from a dramatic increase in gas supplies from shale formations like the Marcellus, make this the opportune time to continue making these infrastructure investments," added DuBois. "SJG has invested over $360 million in accelerated infrastructure replacement programs since 2009, yet the average residential customer's annual bill is approximately 32% lower than it was when SJG first started making these investments." Under SJG's proposal, customers would see no increase to their bill from these investments until 2017.

SJG's petition is also proposing to adjust base rates to reflect prior AIRP investments and those that will be made through the end of 2016.  This rate adjustment would result in an increase of $3.56 or 2.9% for a residential heating customer using 100 therms in a winter month.

South Jersey Gas, a subsidiary of energy services holding company South Jersey Industries (NYSE:SJI), provides natural gas service to approximately 370,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and portions of Gloucester, Burlington and Camden counties in New Jersey. Visit http://www.southjerseygas.com to learn more about South Jersey Gas.

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