Understanding My Residential Bill

As the cost of goods and services increase, we work every day to ensure we are providing you the safest, most reliable, lowest cost natural gas service we can. We don't mark up or profit from the price you pay for natural gas. You pay what we pay. Take control of your monthly bill by learning more about the factors that determine how your natural gas bill is calculated and the steps you can take to lower your energy usage and save money.

Acquisition Credit
In February 2023, Infrastructure Investment Fund (IIF) acquired SJI, parent company of South Jersey Gas (SJG). As a result of the acquisition, all SJG customers will receive two bill credits.

When will I receive the Acquisition Credit?
The first credit of $41.55 was issued in April 2023. The second credit of $41.27 will appear on your first bill on or after April 24, 2024. These credits reinforce our customer commitment to delivering natural gas affordability.

Rates

Rate Changes
The NJ Board of Public Utilities (NJBPU) approved rate changes for certain components of Delivery Charges, which affects the Usage Costs portion of your bill.

**The change in your monthly bill assuming usage of 100 therms per month** is:
Residential Therms 100*	October 1, 2023 bill With BGSS Decrease (see below)	October 1, 2023 bill With BGSS Decrease and Delivery Charge Increases	Change	February 1, 2024 bill With Delivery Charge Increases	Change
Delivery Charge increases	$170.31	$181.24	$10.93	$182.71	$1.47
* A therm is a unit of heat measurement used to calculate your gas usage and charges. 100 therms is for a typical winter month. Keep in mind that everyone’s therm use is different so your actual bill change will be different depending on the amount of therms used each month.

Charges Related to Natural Gas Costs have Changed
The NJBPU approved a 11.1% rate decrease for BGSS, which affects the Gas Charges portion of your bill, effective October 1, 2023. Because SJG does not profit from the cost of natural gas, we are passing along the savings to you. You pay what we pay.

**The change in your monthly bill assuming usage of 100 therms per month** is:
Residential Therms 100*	September 1, 2023 bill	October 1, 2023 bill With BGSS Decrease	Change
BGSS decrease	$191.58	$170.31	($21.27)
* A therm is a unit of heat measurement used to calculate your gas usage and charges. 100 therms is for a typical winter month. Keep in mind that everyone’s therm use is different so your actual bill change will be different depending on the amount of therms used each month.

Below is an explanation of the main sections of your gas bill to help you understand how your bill is calculated each month. It may be helpful to have your bill handy as you review the information.

Understanding Your Bill

There are two primary parts that make up your SJG natural gas bill – Gas Charges and Usage Costs.

Natural Gas Costs

Referred to as Basic Gas Supply Service (BGSS)

This portion includes the cost of the natural gas that you use each month. It is calculated by multiplying your gas usage stated in therms by the cost per therm. SJG does not profit from this charge. This cost is passed on to you without markup. This cost is updated annually to reflect current market prices.

Usage Costs

Your bill also includes calculation details.

Meter Reading: The meter at your home records the amount of gas usage in CCF (Centum Cubic Feet), which is then converted to therms (this is how natural gas usage is measured for billing purposes) using a therm factor.
Current Reading: Represents the current reading of your gas meter, which is determined by one of three methods:

Actual Meter Reading: Your reading was taken by a third-party company - Millenium
Customer Reading: You reported your meter reading to us.
Estimated Meter Reading: SJG estimated your meter reading based on your previous usage and the weather. Any difference from your prior month’s estimate is automatically corrected when we take an actual meter reading. A meter may be estimated due to inclement weather or blocked access to the meter.

Start Reading: The amount of CCF recorded at the beginning of your read cycle.

End Reading: The amount of CCF recorded at the end of your read cycle.

CCF (Centum Cubic Feet): The measurement taken from your meter.

Therm: The basic unit for calculating your gas usage for billing purposes.

Therm Factor: Factor used to convert CCF to Therms.

Usage Costs

There are two charges that roll up to Usage Costs:

Customer Charge

Includes administrative service costs (metering and billing, mailings, system maintenance and record keeping) and is incurred even if no gas is used.

Delivery Charge

Covers the cost of providing safe, reliable natural gas service to your home or business, maintaining operations and delivery systems, and programs that benefit customers and the community. The Delivery Charge includes the following, many of which are state-mandated. Let’s break it down:

Base Rate - This rate, set by State regulators is used to calculate “Cost of Service”, which is one part of the Delivery Charge. The Base Rate is multiplied by the number of therms (natural gas usage measurement) usage each month.
Rider "B" - Infrastructure Investment Program (IIP) - A multi-year program that funds modernizing and enhancing the safety and reliability of SJG's gas distribution system.
Rider "C" - Transportation Initiation Clause (TIC) - A rate that covers operating costs associated with the electronic transfer of customer data between SJG and Third-Party Suppliers who distribute gas.
Rider "G" - Remediation Adjustment Clause (RAC) - A rate that covers the costs of remediating former manufactured gas plants.
Rider "K" - Clean Energy Program (CLEP) - A rate that covers the costs associated with State-mandated Clean Energy Programs, which promote and encourage energy efficiency in the use of electricity, gas, and renewable energy sources through financial incentives, programs, and services in New Jersey.
Rider "E" - Universal Service Fund (USF) and Lifeline - A rate paid by all gas users in New Jersey to provide financial assistance programs for income-eligible customers. The charges help eligible customers pay their utility bills.
Rider "M" - Conservation Incentive Program (CIP) - This program removes the link between utility profits and the quantity of natural gas sold.
Rider "N" - Energy Efficiency Tracker (EET) - A rate mechanism that measures energy savings from Energy Efficiency program incentives to residential and commercial customers. In conjunction with the NJ Clean Energy Program, Energy Efficiency programs help customers reduce energy usage and save money while stimulating the local economy. in addition to the Clean Energy Program.
Rider "J" - Balancing Service Clause (BSC) - A rate that covers the cost of balancing customer consumption with actual gas deliveries, which ensures an adequate gas supply.

How is the Delivery Charge calculated? A rate-based calculation model is used for billing. Each item noted above is assigned a rate that can be found in the SJG Tariff. The individual rates (a-i) are multiplied by the number of therms used each month. The sum of this calculation equals your Delivery Charge.

EXAMPLE

	Rate with Tax ⁽¹⁾	Therms	Total Charge
Customer Charge ⁽²⁾	$10.502563		$10.50
Delivery Charges (per therm):
Base Rate - Cost of Service	0.956608	100	$95.66
Infrastructure Investment Program (IIP)	0.011513	100	$1.15
Transportation Initiation Clause (TIC)	0.000776	100	$0.08
Remediation Adjustment Clause (RAC)	0.058983	100	$5.90
Clean Energy Program (CLEP)	0.026858	100	$2.69
Universal Service Fund (USF) & LifelineSF Permanent	0.017700	100	$1.77

Conservation Incentive Program (CIP)	0.111741	100	$11.17
Energy Efficiency Tracker (EET)	0.041086	100	$4.11
Balancing Service Charge (BSC) (3)	0.081846	100	$8.18
Total Delivery Charges	1.307111		$130.71
Total Usage Cost			$141.21

SJG is committed to delivering safe, reliable, affordable natural gas at just and reasonable rates. With a legacy spanning over a century, our employees work hard every day to improve customer satisfaction.

We consistently make prudent investments aimed at benefiting our customers, to ensure the safe, reliable, and resilient service you rely on from us. These investments are integrated into the Rate Base.
Investments include:

Infrastructure Monitoring – Regular inspections, upgrades, repairs, and replacement of utility infrastructure ensures safety, reliability, and resiliency - replacing unprotected steel and cast-iron distribution systems with modern, medium density plastic and protected steel results in reducing emissions, increased safety and reliability while making an impact on greenhouse gas emissions.
Gas Supply Interruption Prevention – The Sentury Pump Station helps prevent gas supply interruptions caused by extreme weather, peak-demand events, man-made disruptions or other issues that may affect interstate pipelines.
Supporting Our Community – Outreach and education teams help customers learn ways to lower energy costs and receive help paying their bills by connecting them with utility assistance programs. We maintain a strong presence in our local community by volunteering and providing support.
Investment in Cybersecurity Systems – Protecting customer and company information is very important to us. We maintain strict protocols consistent with industry standards to safeguard customer information, as well as support the safe and reliable operations of SJG’s systems and stay current with technology advances.
Helping Customers Use Less Energy and Save Money – SJG Conserve is a comprehensive portfolio of energy efficiency programs and tips for helping customers use less.
Continuously Improving the Customer Experience - Modernizing and enhancing Customer Service and Dispatch operations ensures efficient support and effective response times and service calls.

The Process

It may also be helpful to understand the billing rate approval process.

Of the charges described, the Customer Charge and Base Rate component of the Delivery Charge are reviewed and approved by the NJ Board of Public Utilities (“BPU”) on a periodic basis when the Company seeks a change in a rate case filing with the BPU.

All other components of the Delivery Charge may change annually based on proposals by the Company that are approved by the BPU.

Rate changes can occur throughout the year depending on when the BPU approves each filing.

The monthly Customer Charge is prorated based on the number of days in the billing cycle. The Delivery Charge and Gas Charges (BGSS) are calculated by multiplying the total therms used in a month by the rate per therm.

The amount of gas you consume directly impacts your Delivery Charge and Gas Charges (BGSS); however, the amount of gas you use does not impact your Customer Charge. Typically, a residential customer will consume more gas in winter heating months since temperatures are colder and require more gas use to keep your home warm. Your bill shows a comparison of temperatures for the same period in the previous year.

Energy Efficiency programs can help you save energy and money. Please visit the SJG website for a list and description of Energy Efficiency programs exclusively for SJG customers at southjerseygas.com/SaveEnergy.

Other Items

Deposit

When you open an account, and are not a previous SJG customer, you are assessed a one-time deposit fee. This fee will be reimbursed after 1 full year of timely payments.
The deposit is waived for customers who:

Have an excellent credit history with SJG
Provide a letter of excellent credit from another utility company
Serve in the military

Credit (CR)

Credits may appear on your bill and will carry over to your next bill, reducing some of your costs. Credits may be applied due to:

Customer overpayment
Cancelled bill-when an estimated meter reading is corrected and replaced with an actual meter reading
Energy assistance credit

Estimated Meter Readings

Weather or an inability to access your meter due to fences, loose pets, or landscaping that blocks all or part of your meter can interfere with our ability to read your meter. In these situations, we may estimate your meter reading, sometimes just for one month or multiple months if the issue persists. If the estimate is higher than your actual usage it can lead to a higher than expected bill. If that happens, an adjustment will be made once we obtain an actual meter reading. If the estimate is lower than your actual usage, you may see a higher than expected bill in a future month. If you notice that your bill has been estimated, you can snap a photo of your meter and email it to contactus@sjindustries.com, or enter the meter reading in My Account, and we’ll adjust your bill if necessary.

Why Your Bill Changes Month-to-Month

Several factors impact your monthly bill.

Factors you cannot control:

Customer charge – fixed monthly cost for having an active account
Number of days in a month of the billing cycle (you may see fluctuations in your usage when a month has more or less days than the previous month)
Seasonal changes and outdoor temperature affect the use of your heat (when the temperature is colder, we typically use more heat)

Factors you can control:

Increase in Appliance Usage - your natural gas appliances work harder during colder weather which could cause your bill to be higher
Number of gas appliances in your home
Lifestyle changes, such as working at home
Practice Energy Efficiency. Check out Energy Efficiency programs exclusively available for SJG customers - southjerseygas.com/conserve

How to control gas usage

Use a smart or programmable thermostat
Fix leaky water faucets (dripping hot water is using energy)
Replace furnace and air conditioning filters (helps keep your equipment running efficiently)
Relocate thermostats away from cold areas (seal areas where drafts are present)
Clean dryer lint traps
Replace older, less energy-efficient appliances with energy-efficient gas appliances. Incentives are available when upgrading to high-efficiency equipment and appliances
Reduce length of time in the shower and consider washing clothes in cold water
Fix windows that don’t close properly. Replace single-pane windows
Close fireplace dampers when not in use
Seal drafty areas

Why does my bill appear to be higher after the meter is replaced?

Most times when a meter is replaced, it’s because the meter isn’t functioning properly and may not be accurately recording natural gas usage. If your bill appears to be higher after a meter change, it does not mean you are paying for the new meter. Instead, the new meter is accurately recording the amount of natural gas you are using which is represented on your bill.

What you can do to help reduce your natural gas bill.

Reduce the number of therms you use. Simply put, the less therms or energy you use, the lower your bill. Remember, minor changes can help save energy and money without sacrificing comfort. Simple things like turning down your thermostat or sealing air leaks and drafts can help. In addition, Energy Efficiency programs, financial incentives, and resources are available to SJG customers:

Get instant rebates and discounts on smart thermostats and water-saving fixtures – southjerseygasmarketplace.com
Find easy ways to reduce your energy usage with a quick, online assessment - sjg.energysavvy.com
Visit SJGsaveenergy.com for information on money-saving Energy Efficiency programs, exclusively for SJG customers, including special programs for low to moderate income customers:
- Upgrade to high-efficiency gas heating and water heating equipment with 0% APR financing for 7 years through our On-Bill Repayment Program (OBRP) and up to $1,500 in rebates
- Quick Home Energy Checkup (QHEC) - FREE In-home Assessment
- Home Performance with ENERGY STAR® - whole house comprehensive energy efficiency assessment
- Replace your washer and/or gas dryer with eligible ENERGY STAR appliances and receive up to $300 in rebates
Visit southjerseygas.com/conserve for simple energy saving tips

Trouble paying your natural gas bill?

Utility bill financial assistance is available to help you pay and manage your energy bills. For resources and online applications, visit Utility Bill Assistance.

Visit My Account or speak with a Customer Service Representative about a Payment Arrangement to pay your balance over time.

Natural gas is still your best value.

Rest assured, natural gas is still the most affordable residential energy source according to the Department of Energy’s recently-released 2022 residential energy forecast and natural gas continues to be significantly less expensive than other energy sources.

**Natural Gas vs. Oil**
Natural Gas Furnace (95%)	Oil (80%)	Savings $	Savings %
$1,215	$2,510	$1,295	52%

**Natural Gas vs. Propane**
Natural Gas Furnace (95%)	Propane (80%)	Savings $	Savings %
$1,215	$2,598	$1,383	53%

**Natural Gas vs. Electric**
Natural Gas Furnace (95%)	Electric (Resistance)	Savings $	Savings %
$1,215	$3,360	$2,145	64%

Average annual savings when switching from alternative heat sources and assume use of high efficiency natural gas equipment. Actual savings vary based on usage and energy sources. Comparisons based on EIA NJ Residential Retail Pricing for Oil (October 2023), Propane (October 2023), Electric (July 2023), and SJG’s October 2023 natural gas rate. Availability of natural gas is not guaranteed and contingent upon household proximity to natural gas main.

We appreciate our customers and our community and will continue to deliver value with safe, reliable, affordable natural gas.

Understanding My Residential Bill

Rates

Understanding Your Bill

Natural Gas Costs

Referred to as Basic Gas Supply Service (BGSS)

Usage Costs

Usage Costs

Customer Charge

Delivery Charge

The Process

Other Items

Deposit

Credit (CR)

Estimated Meter Readings

Why Your Bill Changes Month-to-Month

Several factors impact your monthly bill.

Why does my bill appear to be higher after the meter is replaced?

What you can do to help reduce your natural gas bill.

Trouble paying your natural gas bill?

Natural gas is still your best value.

Customer Service

811: Call Before You Dig

Regulatory Information