Shared Electricity Purchase Will Save Schools, Taxpayers $36 Million

FOLSOM, NJ, March 11, 2009—Some 400 New Jersey school districts will save a total of $36 million in electricity costs over the next two years as a result of an agreement developed by an energy-buying cooperative headed by the New Jersey School Boards Association.  The contract, finalized this month, represents the largest group energy purchasing agreement in the state.

South Jersey Energy, a subsidiary of South Jersey Industries [NYSE:SJI], was the successful bidder for less costly electricity in a search conducted by the Alliance for Competitive Energy Services (ACES), the school district buying cooperative sponsored by the New Jersey School Boards Association, the New Jersey Association of School Administrators and the New Jersey Association of School Business Officials.

“The ACES agreement is a prime example of how local school districts are working together to share services,” said Marie S. Bilik, NJSBA executive director.  “By reducing energy costs, the agreement will enable public schools to direct more of their available funds to the classroom.  In some districts, the savings could help to maintain important education programs; in others, the reduced costs could alleviate some of the burden placed on local property taxpayers.”

The agreement proves that the competitive bidding process works in the energy industry, according to South Jersey Energy President Michael J. Renna.

“The competitive bidding process has worked very favorably for our state’s school districts,” said Renna. “We know our schools are under incredible budget pressures due to economic conditions, so we’re pleased that this agreement will significantly reduce their electricity costs.”

Under the terms of the contract, SJE will supply 2.5 million megawatts hours of electricity, which equals all of the electricity requirements for the ACES member school districts. The $36 million savings represents the difference between the ACES contract and the costs of electric generation normally charged by the districts’ utility companies.

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SJE acquires and markets natural gas and electricity for retail customers and offers total energy management services to help commercial and industrial facilities reduce their overall energy costs.

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ON THE WEB:

South Jersey Energy and South Jersey Industries: www.sjindustries.com

New Jersey School Boards Association: www.njsba.orgNew Jersey Association of School Administrators: www.njasa.net

New Jersey Association of School Business Officials: www.njasbo.com