|
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. |
