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Basic
Gas Supply Service (BGSS)
BGSS
rates are designed to recover SJG’s cost of
gas applicable to customers who purchase gas from
SJG. The Company earns no profit from BGSS.
BGSS
consists of two (2) pricing mechanisms.
- Periodic
BGSS pricing is applicable to residential customers
and commercial customers who consume less then
5,000 therms annually.
- Monthly
BGSS pricing is applicable to commercial and industrial
customers who consume at least 5,000 therms annually.
Please
refer to Rider A in the Company’s tariff for
more information on BGSS Pricing.
Historical Rates In PDF
format - You must use Adobe Reader®. Click herefor a free
copy
Interruptible Gas Service (IGS)
The
rate per therm of gas under the IGS Rate Schedule
is calculated monthly.
- For
a customer that certifies that it has, or is capable
of having, an Alternate Fuel Capability of No.
6 oil, the appropriate price shall be that of No.
6 oil.
- For
a customer that certifies that it has, or is capable
of having, an Alternate Fuel Capability of No.
4 oil, the appropriate price shall be that of No.
4 oil.
- For
a customer that does not certify that it has, or
is capable of having, an Alternate Fuel Capability
of No. 4 oil or No. 6 oil, the appropriate price
shall be that of No. 2 oil.
Please
refer to Rate Schedule IGS in the Company’s
tariff for more information
Historical Rates In PDF
format - You must use Adobe Reader®. Click herefor a free
copy
Rate Change Adjustment
The
New Jersey Board of Public Utilities, after a full
administrative process, recently approved a settlement
agreement authorizing changes in the way SJG calculates
charges for commercial and industrial customers.
This change applies to customers being supplied by
SJG who use at least 5,000 therms of natural gas
annually. Customers being supplied by someone other
than SJG will continue to be billed per their agreement
with their marketer.
Beginning
April 1, 2006, pricing for the natural gas commodity
portion of your bill will now be adjusted monthly.
In the past, under Periodic BGSS pricing, prices
were adjusted up to three times per year and at times,
the price you were being charged was not necessarily
indicative of actual commodity costs in the wholesale
natural gas market. Your price could have been either
higher or lower. The change to monthly pricing will
help ensure that you are billed at a rate that more
closely reflects the current market price of natural
gas. You may already be familiar with monthly price
adjustments if you have other New Jersey business
locations outside of our service area. In fact, all
of the state’s natural gas and electric utilities
have used market-based monthly pricing for several
years.
The
new monthly BGSS pricing will include commodity costs
for natural gas on the monthly New York Mercantile
Exchange settlement prices, costs for delivery of
the natural gas to SJG and fixed pipeline demand
charges. All monthly price changes will be provided
to the BPU before they are implemented.
Please
be aware that monthly adjusted prices will reflect
market costs sooner than your previous price adjustment
structure. This market-based rate will appear for
the first time on your April 2006 bill. In addition,
you will continue to pay your share of SJG’s
under collection of gas costs via a surcharge that
will be included in the monthly price. Based upon
current market conditions, the change to monthly
pricing will represent a rate decrease from your
current pricing structure.
Please
check the Frequently Asked Questions listed below.
If you have any further questions, please feel free
to contact William Holmes at (856) 561-9000 extension 6350.
FREQUENTLY
ASKED QUESTIONS
What
is monthly pricing?
Your bill is comprised
of three components, Basic Gas Supply Service (BGSS),
delivery and customer charges. BGSS is now a market-based
price that will adjust on a monthly basis to reflect
changes in the market price of natural gas that SJG
pays to its suppliers. This change only involves the
price of natural gas and will not affect your delivery
rate or customer charge, as they will continue to cover
the cost of moving natural gas through our pipes to
your meter with safe, reliable service. Each month,
SJG will recalculate the price for the upcoming month
and submit it to the New Jersey Board of Public Utilities.
For example, the monthly market settlement price for
May, determined by the New York Mercantile Exchange
(NYMEX) the third business day before the end of April.
This price will be posted on Sheet No. 63 of SJG’s
tariff, available on www.sjindustries.com/sjg the first business day of each calendar
month.
When
will monthly pricing be implemented?
Monthly pricing will be effective
April 1, 2006.
Who
will be impacted by monthly pricing?
Each year SJG will conduct a review
of commercial and industrial (“C&I”)
customers’ usage for the most recent calendar
year to determine which customers will be monthly priced.
All C&I customers who consume 5,000 therms or more
a year of natural gas will be monthly priced.
How
can I find out more about natural gas prices?
The most significant driver in the
change to your monthly BGSS price is the monthly market
settlement price as determined by the NYMEX on the
third business day before the end of each month. We
cannot predict what future NYMEX prices will be. If
you wish to track NYMEX prices directly, you can access
NYMEX pricing on www.nymex.com. In the middle of the page, click on the natural
gas symbol (a flame with a ring around it) in order
to reach the natural gas section of the web site. Then,
on the menu on the left of the screen, you can choose “current
session” or “previous session” market
data for NYMEX natural gas pricing information. Under
both sessions, you may select either “overview” or “expanded
table.”
What
are my options?
Since the New Jersey Electric Discount and Energy Competition Act was
signed into law in 1999, you can choose an alternative
company, other than SJG, to supply your natural gas.
You can also do nothing and continue purchasing your
natural gas from SJG.
What
remains the same?
No matter which supplier you choose,
SJG will continue to deliver your natural gas, read your meter and send you
a bill. If your alternative supplier fails to provide you with natural gas,
SJG will provide you with uninterrupted service at the monthly price. SJG will
also continue to address all emergency issues.
Why
is the price structure changing for C&I customers?
This change will provide for a pricing
mechanism for C&I customers that is consistent
with the three other natural gas utilities in New Jersey.
Adjusting your rate monthly will ensure that you are
billed at a rate that more closely reflects the market
price of natural gas.
Will
a supplier save me money?
Compare prospective supplier prices. Just like
your monthly BGSS price, some suppliers may have
prices that fluctuate monthly. However, some
suppliers may be willing to provide you with
a fixed price offer that will not fluctuate during
the term of your contract. To determine if you’ll
realize a savings based upon current prices, potential
suppliers will need to calculate your total gas costs
based on your usage requirements. A fixed-price offer
generally cannot guarantee savings but it can provide
price stability. Please note that suppliers are required
to describe in clear and conspicuous language, the
mechanism or formula of which your price will be determined.
How
do I find a natural gas supplier?
You can always access a list of current
alternative, natural gas suppliers through the BPU’s
website (www.bpu.state.nj.us), or
you may contact our Customer Care Center (1-888-766-9900)
for an Energy Choice Shopping Guide. You may also request
this guide by clicking here.
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