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Conservation Techniques Will Reduce Energy Costs
BY EDWARD J. GRAHAM, DIRECTOR, PRESIDENT AND CEO OF SOUTH JERSEY GAS

The rising cost of energy has rightfully become a national concern. For South Jersey Gas to remain an industry leader we must be a part of the solution for customers. With a goal of collaborating with our customers to help them reduce their energy costs while keeping our company strong, in 2006, with the approval from the New Jersey Board of Public Utilities, we implemented an innovative Conservation Incentive Program (CIP). I am proud to announce that South Jersey Gas is one of the first utilities in the country to implement this leading edge type of program.  

            Approved as a 3-year pilot program, the CIP will soon celebrate its 1-year anniversary at South Jersey Gas. Through the CIP, we strongly advocate more efficient use of natural gas to customers through a variety of educational efforts. Customers who consistently practice conservation techniques will reduce their usage and energy costs therefore, driving producers to lower commodity prices.   

New Jersey’s demand for energy in the last decade has grown three times faster than its population.  To help reduce energy demand and reduce greenhouse emissions, in 2006, Governor Corzine signed an Executive Order (effective July 2007) promoting conservation measures statewide and encouraging residents to find savings through energy efficiency. The CIP highlights the efforts of South Jersey Gas in support of the Governor’s push to conserve energy and preserve the environment. At the same time, it  providesit provides our customers the opportunity to not only save significant amounts of money on their gas bills but also to contribute to achieving our state’s energy goals. 

How Can Conservation Save Your Municipality Money?

Conservation and energy efficiency is not just important to South Jersey Gas’ residential customers; it also helps municipalities and taxpayers save money. The American Society of Heating, Refrigerating, and Air Conditioning Engineers estimates that the expense of operating and maintaining buildings represent 50% of all costs over a building’s 40-year life span. Therefore, if a municipality chooses to make a building more efficient, the long term financial benefits to the city and the taxpayer are substantial. While the initial installation costs for equipment or upgrades may deter some from pursuing energy efficiency options, financial incentives are available through the New Jersey Clean Energy Program offered by the New Jersey Board of Public Utilities.   

If a municipality chooses to invest in energy efficiency equipment, the short payback periods can provide considerable return on investment. Although these initial investment costs can be substantial, grants and financial incentives help curb the primary cost making it easier for your municipality to pursue energy efficient plans with minimal impact on taxpayers. There are grant opportunities available for projects of all sizes, including new construction, major renovations, building remodeling, or replacement of old, outdated equipment. 

Not sure where to start? The first step is to have an energy audit conducted on your facility, which will identify all sources of wasted energy.  There are several licensed contractors in New Jersey who will perform these audits and provide a comprehensive report of their findings, along with recommendations as to how to improve the buildings’ energy efficiency. After the energy audit is completed, your contractor will provide you with the needed information to convert your building in the most cost effective manner possible.   

As South Jersey Gas closes in on its first year under the CIP, we have taken strides to promote energy efficiency in the South Jersey region among not only our customers, but in the entire community. In fact, as a direct benefit of the CIP, South Jersey Gas filed a petition on June 1 with the Board of Public Utilities to reduce residential gas rates for our heating customers by 3.7%. If approved, this reduction will become effective on October 1, 2007.    

Over the next few months, South Jersey Gas will introduce several new educational initiatives associated with the CIP. One such program is the Nexus Prism System, an electronic interface which reviews a customer’s billing, identifies different patterns of usage and provides helpful tips to reduce energy consumption. Another exciting initiative partners South Jersey Gas with Niagara Conservation Corporation, enlisting various school districts within our service territory to introduce an Energy Efficiency/Conservation component into 6th grade curriculum. These are just some of the steps we are taking to advance environmentally friendly measures in the communities we serve. By reducing energy use, customers will see lower operating costs, which are typically paid for by taxpayers, thereby compounding the overall benefit of the CIP. 

For more information on the CIP and links to several of the state programs mentioned in this article, please log onto www.southjerseygas/save/ or call the South Jersey Gas conservation hotline at 1-800-648-0138.

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