corporate sustainability report

2015
CORPORATE SUSTAINABILITY REPORT
SJI CORPORATE SUSTAINABILITY REPORT
Contents
Message from the President & CEO_______________________________ 1
Corporate Profile_____________________________________________ 2
Economic Impact_____________________________________________ 7
Environmental Impact________________________________________ 11
Managing Materials and Resources______________________________ 22
Social Impact_______________________________________________ 24
Message from the President & CEO
A company’s success is rooted in its ability to not only thrive in business,
but to positively impact all of its stakeholders by being a valued, supportive and respectful corporate citizen.
To that end, SJI has long believed that business success and corporate social responsibility go hand in hand. The result has been a consistent focus
on customer and employee safety, diversity and corporate governance,
environmental stewardship and social investment.
2015 marks the 7th annual update of our Corporate Sustainability Report.
Within it, we highlight how our strategic actions link both our business
and sustainability initiatives. As an example, our employees are continually focused on innovation and are empowered to make decisions that
benefit both the company and the communities it serves. From designing
energy projects to developing updated processes, idea sharing is encouraged at all levels of the organization to ensure that a productive, leadership focused culture exists . As an organization, we are a staunch advocate
for our customers by persistently focusing on energy efficiency measures
that support not only reductions in their energy costs, but also usage and
associated environmental impacts. We also remain focused on our work as
a respected corporate citizen by offering support to those in need, both
through financial and time commitments. All the while, we have been consistently successful at growing the value of our shareholders’ investments.
On behalf of our senior management team, we thank our board of directors for their guidance and commitment to achieving our objectives and to
our employees for their untiring dedication.
As we continue to build on our success, our sustainability focus will remain,
centered on economic, environmental and social endeavors that benefit
our organization and those we serve. These initiatives are integral to realizing our vision and overarching growth objectives for SJI.
Michael J. Renna
President and CEO
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SJI and subsidiaries office
locations and project facilities
CORPORATE PROFILE
SJI’s roots trace back to 1910, starting in the utility business as Atlantic City Gas Company serving
customers in Atlantic City, N.J. Today, SJI is an energy
services holding company. The company operates a
regulated, natural gas utility, South Jersey Gas, and
several non-regulated companies under the corporate name of South Jersey Energy Solutions and SJI
Midstream, LLC. These businesses focus on energy
project installations, including CHP and solar, as well
as retail and wholesale electric and natural gas commodity activities, and appliance service.
SJG, one of the fastest growing utilities in the nation,
is a regulated company that strongly advocates the
efficient use of energy while safely and reliably delivering natural gas to an ever-expanding customer
base of over 369,000 residential, commercial and
industrial customers in New Jersey. The utility’s service territory covers more than 2,500 square miles of
southern New Jersey, including all of Atlantic, Cape
May, Cumberland and Salem counties and portions
of Camden, Burlington and Gloucester counties.
Also, through its Off-System Sales function, SJG sells
natural gas on a wholesale basis to customers in the
interstate market.
SJI is headquartered in Folsom, NJ and employs 716
people. The company’s stock is traded on the New
York Stock Exchange under the trading symbol SJI.
SJES, the parent of SJI’s non-regulated businesses,
provides innovative, environmentally friendly energy
solutions that help customers control energy costs
and consumption. SJES’ subsidiaries are grouped into
two primary areas referred to as South Jersey Energy
Services and South Jersey Energy Group. Energy Services reflects the organization’s energy production
assets including CHP and thermal facilities, solar and
Organizational Structure
SJI is the holding company for South Jersey Gas,
South Jersey Energy Solutions and SJI Midstream,
LLC.
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ŠŠ SJExploration manages our Marcellus
Shale assets.
ŠŠ SJESP services residential and commercial
heating, air conditioning and water heating
systems, services appliances, provides plumbing services and performs energy audits.
SJI Midstream, LLC is the holding company created
to manage SJI’s midstream operations and the company’s participation in the PennEast Pipeline project. SJI owns 20 percent of this $1 billion project to
bring natural gas supplies from the Marcellus region
of Pennsylvania to New Jersey with a targeted inservice date in late 2017. While currently in the early
stages of development, the project would help to
meet the growing demand for natural gas service in
the region, and provide enhanced system resiliency
and reliability, greater supply diversity and lowercost natural gas for SJG customers.
landfill gas-to-energy generation projects, and our
smaller HVAC and meter reading subsidiaries. Energy
Group reflects assets related to the supply, storage
and transportation of natural gas in and around the
Marcellus. This includes contributions from electric
and natural gas commodity activities in our retail
line, our wholesale natural gas commodity business,
and our royalty rights on shale acreage.
Corporate Governance
SJI is governed by a 10 member board of directors,
9 of whom are not SJI employees. Michael J. Renna,
age 48, is both a member of the Board of Directors
and President and Chief Executive Officer of SJI.
Renna has been employed by the company for 17
years and has held senior officer level positions in the
company since 2004.
The operating companies that make up SJES are
South Jersey Energy, Marina Energy, South Jersey
Resources Group, South Jersey Exploration Group,
and South Jersey Energy Service Plus.
ŠŠ SJE acquires and markets natural gas and
Walter M. Higgins III, age 70, is SJI’s Chairman of the
Board. He has served on SJI’s board for 7 years and
was elected Chairman in 2015. Higgins has been a
Director, the Chief Executive Officer and President at
Ascendant Group Ltd. since May 2012 and President
and Chief Executive Officer of Bermuda Electric Light
Company Limited since September 2012. Higgins
is the former Chairman, President and CEO of Sierra
Pacific Resources (now called NV Energy).
electricity for retail customers and offers
energy-related services to help businesses
reduce their energy use and costs.
ŠŠ Marina develops and operates on-site
energy projects including thermal facilities
serving hot and chilled water for casinos,
cogeneration facilities, solar installations and
landfill gas-to-electricity facilities.
ŠŠ Energenic-US, a limited liability company
operated by Marina and DCO Energy, develops and operates energy projects throughout
the nation.
SJI also has three subsidiary boards, overseeing
South Jersey Gas and South Jersey Energy Solutions
and SJI Midstream, LLC, made up by members of SJI’s
board. Walter M. Higgins III serves as Chair of the SJG
board and Joseph H. Petrowski, 61, is Chair of SJES
and SJIM Executive Committees. Petrowski, who has
been on SJI’s board since 2008, is Managing Part-
ŠŠ SJRG provides wholesale commodity marketing and commodity management services
primarily in the mid-Atlantic region.
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ner and Founder of Mercantor Partners, LLC and an
equity holder in Gulf Oil. The presidents of SJG and
SJES serve on those respective boards. SJI’s president
and CEO serves on the SJES and SJIM Executive Committees SJI’s remaining board members are: Sarah
M. Barpoulis, Owner, Interim Energy Solutions, LLC;
Thomas A. Bracken, President, New Jersey Chamber
of Commerce; Keith S. Campbell, Chairman, Mannington Mills; Victor A. Fortkiewicz, Of Counsel,
Cullen and Dykman, LLP; Sheila Hartnett-Devlin, CFA,
Sr. Vice President, American Century Investments;
Sunita Holzer, EVP and CHRO at Realogy Holding Corporation; and Frank L. Sims, Retired, Corporate Vice
President and Platform Leader, Cargill, Inc.
SJI’s board of directors, which is elected by the shareholders, is the company’s ultimate decision-making
body except with respect to matters reserved for
shareholder consideration. The board selects the
senior management team, which is charged with
conduct of the company’s business. Having selected
the senior management team, the board acts as an
Audit Committee
advisor and counselor to senior management and
ultimately monitors its performance.
The board maintains five standing committees: the
Audit Committee; the Compensation Committee; the
Corporate Responsibility Committee; the Executive
Committee; and the Governance Committee.
• Serve as an independent and objective party to monitor the corporation’s financial reporting process and internal control system.
• Review and appraise the audit efforts of the corporation’s independent accountants and internal auditing department.
• Provide an open avenue of communication among the independent accountants, financial and senior management, the internal auditing department, and
the board of directors.
• Provide an open avenue of communication regarding ethical behavior.
Compensation Committee
• Develop and administer an executive compensation program which: is competitive; ensures that the interests of executives are aligned with the interests of
shareholders; ensures the company’s ability to attract and retain qualified executive talent; and strikes a proper balance between compensation and corporate
growth.
• Oversee the management of the assets of the company’s pension plans, VEBAs
and Rabbi Trust; produce investment returns that achieve the Plans’ actuarially assumed rate of return; achieve the optimal return within specified risk tolerances;
and, prudently invest assets in a high-quality, diversified manner.
• Oversees the CEO evaluation process.
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Corporate Responsibility
Committee
• Provide oversight of company policies, procedures and practices, and foster
active corporate responsibility. Areas of primary focus include board identified
matters of significant public interest and social value, community service and outreach, employment practices, standards of conduct, and environmental compliance and stewardship.
Executive Committee
• Exercise all powers on behalf of the board of directors in the management of the
business and company affairs to the extent permitted by law and by the company’s Bylaws.
Governance Committee
• Make recommendations on board organization, practice, and facilitate the identification and recruitment of director candidates. The committee also advises and
recommends changes in director compensation.
Board Orientation and Training
and Sale of Company Securities, industry updates
and other pertinent information on the board,
management, and the operations and organizational
structure of each of its functioning subsidiaries.
SJI’s board has an orientation and training program
in place for directors. The orientation includes, but
is not limited to, a review of the company’s Code
of Ethics, the policy regarding trading in company
stock, board compensation, meetings with senior
management, and visits to various company facilities.
Each year, the Board sets aside funds for the continuing education of its sitting directors. To assist
the Board Members in remaining current with their
board duties, committee responsibilities and the
many important developments impacting their business and company, SJI participates in the NYSE-Corporate Board Member Board Education Program. This
program offers SJI’s Directors access to a wide range
of in-person, peer-based, and web-based educational programs on corporate governance, committee
duties and board leadership and industry developments. In addition, each SJI Director is a member
of the National Association of Corporate Directors,
offering access to additional educational programs.
Onsite educational programs are also provided for
Directors, with each attending at least one education
activity per year.
Corporate Governance Guidelines
SJI’s Corporate Governance Guidelines are consistent with industry Best Practices. Examples of recent
activities are:
Board members have available resource materials
that are supplemented and periodically updated.
These materials include the By-laws, board committee charters, Code of Ethics, Policy on the Purchase
Declassification of the board of directors: At SJI’s
2009 annual meeting of shareholders, our sharehold-
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ers voted to amend SJI’s Certificate of Incorporation,
establishing the annual election of the company’s
directors. Previously, directors were elected in classes
to serve on the board in multi-year increments. As a
result, the entire board was not required to run for
election at the same time. Effective in 2013, all directors standing for election are annually elected to fill
one-year terms.
ensures an employee’s anonymity. Each report is
investigated and brought to appropriate resolution.
Compliance and Ethics Program: Since our company was founded, we have had a reputation for being
an honest and fair company with which to do business. Over time, we have demonstrated the ability
to operate transparently by establishing policies and
procedures that ensure integrity and fair business
practices.
Public Utilities Fortnightly Top 40 Companies: In September 2015,
SJI was rated number 28
among the top 40 energy
companies in the country
in Public Utilities Fortnightly’s annual financial
ranking. The magazine,
the flagship publication
of Public Utilities Reports,
Inc., established this ranking to highlight the industry’s leading companies
based on financial performance over a three year
period. Fortnightly’s method of ranking energy companies uses an industry analysis that communicates
value to future investors, energy asset operators,
regulators and consumers. The top 40 companies
were selected from the nation’s electric and gas utilities, pipelines and distribution companies.
SJI’s Corporate Governance Guidelines are published
and available in detail online at www.sjindustries.
com under the heading, “Investors.”
Company Achievements
SJI’s corporate Compliance and Ethics Program
includes web-based training to ensure the board of
directors and all employees act in compliance with
laws, regulations and commonly accepted standards
of ethical behavior. The training program includes
practice scenarios for resolving ethical dilemmas.
Other company policies in place that promote ethical
and fair behavior are the Dishonest Conduct policy
and the Equal Employment Opportunity Affirmative
Action/Non-Discrimination policy. The Dishonest
Conduct policy stresses that employees must conduct themselves in an ethical and honest manner at
all times and should adhere to commonly accepted
business practices that demonstrate a high degree
of personal integrity during the course of business
activities. Within the Equal Employment Opportunity
Affirmative Action/Non-Discrimination policy the
company fully endorses a workplace environment
that is free from discrimination and/or harassment.
Steps for reporting violations and for disciplinary action are clearly stated within those policies.
Rankings are based on profit margin, dividend yield,
free-cash flows as a percentage of revenue, return on
equity and return on assets with an emphasis placed
on current and future company growth.
The Executive Women of New Jersey honored SJI
with the Gender Diversity Award for the company’s
demonstrated commitment to board gender diversity. This award was presented to New Jersey companies whose board of directors includes at least three
women. During the awards ceremony, EWNJ introduced its latest research report that provides statistics on women’s board participation and executive
leadership at New Jersey’s top public companies.
In addition to providing internal reporting mechanisms for employees to raise concerns about business behavior or practices, they can also report
unethical, illegal or questionable business practices
through MySafeWorkplace.com. This website is
managed by an independent, third-party firm that
The American Gas Association named South
Jersey Gas as one of the recipients of its 2014 Safety
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Achievement Award in fleet safety for having one
of the lowest motor vehicle accident rates among
member companies. SJG was recognized at the AGA’s
Annual Operations Conference. With more than 200
member companies, AGA is committed to promoting
a culture of safety and delivering the nation’s most
efficient, abundant, clean energy source to homes
and businesses.
to four companies, including SJI, who excelled in
their fundraising efforts to achieve successful United
Way Employee Campaigns.
The American Heart Association honored SJI with
the 2015 Fit-Friendly Company Platinum Certification. The certification awards employers who go
above and beyond when it comes to employee
health.
The New Jersey State Department of Labor and
Workplace Development Division of Vocational
Rehabilitation services recognized SJI’s commitment to inclusion by providing and offering job
opportunities to individuals with disabilities. SJI has
recruited employees through JEVS hireAbility by consistently informing the organizations of employment
opportunities within the company.
The United Way of Greater Philadelphia and
Southern New Jersey honored SJI with the 2015
Outstanding Campaign Award. The award was given
Economic Impact
Holly City Development Corporation, a non-profit
organization and direct subsidiary of the Millville
Housing Authority that facilitates development of
affordable housing and other community development facilities in Millville.
SJI pays approximately $58 million in base salaries
to 716 employees, plus federal, state and local taxes.
The company purchases goods and services from
numerous vendors who participate in our supplier
diversity program. We also subcontract utility construction work to area contractors. As an example,
the infrastructure and equipment investment projects mentioned below, which significantly impact
the economy in the regions we serve, are being completed by subcontractors. Our charitable donations
and sponsorships of non-profit and business organizations through our Social Investment Program add
to the impact we make on the economy. Details on
our Social Investment Program are provided beginning on page 34.
The Neighborhood Revitalization Tax Credit Program
is designed to foster the revitalization of New Jersey’s
distressed neighborhoods. Program funds are used
by eligible non-profit organizations, such as Holly
City Development, for projects and activities that will
improve the neighborhoods they serve, in accordance with an approved neighborhood revitalization
plan.
Infrastructure Investment
Neighborhood Revitalization Tax
Credit Program
In 2009, the New Jersey Board of Public Utilities approved a proposal by South Jersey Gas to create jobs
in support of New Jersey’s Economic Stimulus Plan,
while also improving our infrastructure to enhance
the delivery of safe and reliable service to our customers. The initiative involved extensive infrastructure improvement projects in 2009 and 2010 totaling
just over $100 million that were incremental to SJG’s
normal capital programs scheduled for those years.
During 2014, South Jersey Gas made a $1 million investment in the Center City Redevelopment project
in Millville, NJ through the New Jersey Department
of Community Affairs Neighborhood Revitalization
Tax Credit program. The contribution went to the
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In addition, SJG received NJBPU approval in August
2014 for the company’s Storm Hardening and Reliability Program (SHARP). Over a three year period,
the company will invest $103.5 million to enhance
and protect its infrastructure in advance of future
significant weather events. The program was developed in response to a BPU request that utilities
develop infrastructure enhancement programs that
would help protect their energy delivery systems
from future storms. The program’s primary focus is
to upgrade the company’s lower operating pressure
distribution systems. Lower pressure systems, by
nature, are more susceptible to water intrusion during significant storms with flooding conditions. By
upgrading this infrastructure and associated operating pressures, SJG is working to ensure the continued operation of its system during and after a major
storm event.
In addition, in early 2011, NJBPU approved an extension of the program through October 2012 with
an additional $60.3 million being spent on further
infrastructure enhancements. In May 2012, SJG was
granted an additional extension of the program and
authorized to invest $35 million in infrastructure
initiatives through the end of the year.
As of June 30, 2015, SJG has invested over $36
million with 32.0 miles of main installed and 3,762
services renewed through the SHARP program.
These expenditures, which were otherwise planned
to occur over a five year period, are crucially important to SJG’s gas delivery systems and simultaneously
generate more jobs.
SJI’s Financial Results
A 5-year summary of selected financial data for the
full year ended December 31, 2014 follows on page 9
of this report.
In February 2013, the NJBPU approved SJG’s proposal
for its Accelerated Infrastructure Investment Program
(AIRP). The program focuses on the replacement, on
an accelerated basis, of aging cast iron and bare steel
infrastructure within SJG’s system. The NJBPU approved SJG to spend $35 million a year over the next
four years to complete this work. These projects are
incremental to the company’s normal capital projects
scheduled over that same time period. Total jobs to
be created for this four year program are estimated
at 141 annually, with 340 total jobs created to date.
For 2015, SJI has provided Economic Earnings per
Share guidance to a range of $1.49 to $1.54. For the
first six months of 2015, GAAP income from continuing operations was $67.2 million, or $0.98 per diluted
share, as compared with $57.9 million, or $0.88 per
diluted share, in the first six months of 2014.
For the first six months of 2015, income from continuing operations on an Economic Earnings basis
was $60.8 million or $0.89 per diluted share, as compared with $76.2 million or $1.16 per diluted share in
the first six months of 2014.
As of June 2015, SJG has invested over $85 million
and replaced approximately 238 miles of bare steel/
cast iron main and 11,273 associated bare steel
services through the AIRP program. This improves reliability by improving the integrity of the company’s
distribution system.
For more information about SJI’s 2015 performance
to date, please visit www.sjindustries.com to view
SJI’s earnings news releases.
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2014 Highlights
Five-Year Summary of Selected Financial Data
(In Thousands Where Applicable)
9
10
Environmental Impact
energy and other natural resources, to
minimize the generation of waste, and to
enable recycling and reuse of materials.
Environmental Policy and Goals
SJI’s management and board of directors believe
that businesses are responsible for achieving sustainable environmental practices and operating in a
sustainable manner. We are committed to reducing
our environmental impact and continually improving our environmental performance as an integral
and fundamental part of our business strategy and
operating methods. SJI operates an Environmental
Committee comprised of various senior executives
that meets approximately four times per year to discuss the status of current remediation projects and
any environmentally-focused business, regulatory
or legislative matters, and also review and approve
annual forward-looking cost projections.
ŠŠ We will minimize energy and water usage
in our buildings, vehicles and processes
to conserve supplies and minimize our
consumption of non-renewable natural
resources.
ŠŠ We will apply the principles of continuous
improvement in respect of air, water, noise
and light pollution from our premises and
reduce any impacts from our operations on
the environment and local community.
ŠŠ We will as much as possible, purchase
products and services that do the least
damage to the environment and encourage others to do the same.
ŠŠ We will offer our customers the most
environmentally friendly energy supplies
and encourage them to purchase energy
efficient equipment and to implement efficiency measures.
ŠŠ We will promote participation and communicate our commitment to responsible
environmental management by promoting
environmental responsibility among our
employees; and by informing suppliers of
our environmental policy and encouraging them to adopt effective environmental
management practices.
As an organization, we work diligently to adhere to
the following environmental principles:
ŠŠ Our products and operations will comply
with or exceed all applicable regulations
and requirements.
Natural Gas – The Environmentally
Friendly, Economical Fuel
Natural gas, the cleanest burning fossil fuel, is a
highly efficient form of energy. Using it to replace
less environmentally friendly fuels like oil and coal
can help reduce smog, acid rain and greenhouse gas
emissions. According to the American Gas Associa-
ŠŠ We will employ management systems
and procedures specifically designed to
minimize the use of hazardous materials,
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tion, clean-burning and reliable natural gas can play
a significant role in mitigating global climate change,
while enhancing America’s energy security and economic growth.
gas transportation costs. The pipeline will begin in
Luzerne County in northeastern Pennsylvania and
end at Transco’s Trenton-Woodbury interconnection
in New Jersey. Prior to the development of the Marcellus Shale play, natural gas lines were constructed
to bring gas primarily from the Gulf of Mexico region
and Canada into the Northeast. Pennsylvania is the
fastest growing natural gas producing state in the
country, according to the U.S. Energy Information
Administration, and each of PennEast’s sponsor
companies recognized the opportunity to use locally
produced gas to serve growing markets in the midAtlantic.
On top of the price advantages natural gas has over
large scale energy generating fuels, the commodity
also provides a significant price advantage over electricity, home heating oil, and propane for residential
and small commercial use. In large part, this advantage is due to plentiful shale gas supplies available
within the United States, particularly the Marcellus
Shale region in Pennsylvania, which have driven
natural gas prices lower for consumers.
To highlight the intended benefits of this project,
one need only look at the winter of 2014. Natural
gas prices in New Jersey traded as high as $100 per
dekatherm during that time. Natural gas in the area
that PennEast will access traded in the range of $3 to
$4 per dekatherm. The proposed pipeline will help
reduce this price volatility to the benefit of New Jersey’s nearly 3 million natural gas consumers. Had the
pipeline been in service during the winter of 2014,
energy costs to customers in the region could have
been reduced by as much as $890 million.
Cape Atlantic Reliability Pipeline
Delivering natural gas to repower the BL England
Generating Station in Cape May County adheres to
both state and federal clean air standards and will
drastically improve emissions from the plant. At the
same time, the conversion allows the plant to use
a product that’s less expensive than coal or oil and
available in abundant supply. In addition, the project
helps reinforce SJG’s system with needed redundancy. Currently, a disruption to the one transmission
line feeding Cape May County could severely interrupt service for thousands of customers for multiple
months. The completion of this project will establish
greater service dependability for our customers in
Cape May County.
PennEast Pipeline
In fact, it’s this plentiful supply and low cost gas right
next door that drove our involvement in the
PennEast Pipeline. The 100-mile pipeline is intended
to bring lower cost natural gas produced in the
Marcellus Shale region to homes and businesses
in Pennsylvania and New Jersey. It is designed to
provide natural gas service to the equivalent of 4.7
million homes, up to 1 billion cubic feet per day, offering consumer savings through lower energy and
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Gas Supply and Safe Extraction
these activities reduce energy consumption for our
customers, they also help stimulate the economy
through the creation of jobs.
SJI also has business opportunities involving Marcellus gas from a marketing standpoint, where we help
producers move gas from the wellhead to end users.
We are also involved in a royalty purchase program
where we have a revenue stream associated with
natural gas production without the risk and capital
connected with drilling.
Utility Initiatives – Reducing Customers’ Energy
Usage
As you may be aware, drilling associated with shale
gas extraction has been a local, regional and national
news item in recent years. This drilling process, called
hydraulic fracturing, was first used in the United
States in 1947. It has been successfully used on more
than one million wells. This extraction process is subject to federal, state and local regulations that cover
everything from initial permits to water disposal.
The United States Environmental Protection Agency,
Ground Water Protection Council, Interstate Oil and
Gas Compact Commission and others have examined the process and found it to be safe if performed
according to regulations.
Conservation Incentive Program
SJG was one of the first utilities in the country to
implement an innovative Conservation Incentive
Program rate structure. The program encourages
customers to use natural gas more efficiently by educating them about measures they can take to reduce
consumption. The CIP program focuses on reducing
consumption with the interests of natural gas customers and shareholders aligned. Residential, government and business customers can reduce their
natural gas bills by implementing energy efficiency
measures and lowering their usage. CIP benefits SJG
by eliminating the link between utility profits and
the quantity of natural gas the company sells.
While SJI does not participate in the actual drilling process, it strongly supports environmentally
responsible drilling by producers who comply with
strict local, state and federal regulations and regularly monitor and test to confirm that their work is
proceeding safely.
SJI also believes there are many positive benefits of
extracting shale gas if done safely and properly that
include job creation, abundant supplies of clean fuel
and low energy costs for consumers.
Initiatives to Reduce Our Customers’
Energy Consumption
As a result of the CIP, from October 2006 through
June 2015, customers have reduced their natural gas
usage by a total of 49.2 billion cubic feet, enabling
them to save $511.0 million in energy costs, while
$40.9 million of SJG’s net income was protected.
SJI’s commitment to providing the most environmentally friendly energy supplies and encouraging
customers to implement energy efficiency equipment and measures is evident in the initiatives
and projects in which we participate. Not only do
Energy Efficiency Programs
Since 2009, SJG has instituted a series of energy efficiency program incentives to help residential, com-
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mercial and industrial customers to reduce energy
usage, save money and also strengthen the local
economy by creating green jobs. In August 2015, SJG
received NJBPU approval to both continue and en-
hance its energy efficiency programs through August
31, 2017, totaling $36.3 million of investments. The
five programs are outlined below:
Residential Home Performance and Finance Energy Efficiency Program - This program is designed to motivate customers to take advantage of New Jersey’s Home Performance with Energy Star® program by providing significant
financing offers - up to $10,000 as a 7-year loan at zero percent interest with no money down, or up to $15,000 as a
10-year loan at 4.99 percent interest - to assist in obtaining whole house energy efficiency, comfort and savings. To
receive financing, customers must work through an accredited Home Performance with Energy Star® company.
Enhanced Residential HVAC Rebate Program - This program is designed to motivate customers with existing HVAC
systems in need of immediate replacement, to install qualifying high efficiency heating and water heating equipment. SJG will offer grants of $500 or financing up to $6,500 at zero percent interest for a 5-year term to eligible
customers after completion of a Home Performance with Energy Star® Home Energy Assessment, provided by an
accredited home energy auditor.
Non-Residential Energy Investment Program - This program is designed to generate large energy savings for commercial and industrial customers by offering financing of up to $100,000 at zero percent interest for a 5-year term, to
qualified customers who are eligible for financing offers through the New Jersey Clean Energy Program’s Smart Start,
Pay for Performance, and Custom Measures programs.
Commercial Customer Direct Install Financing Program - This program is designed to encourage NJCEP Direct Install
program participation by financing the difference between the project cost and the NJCEP Direct Install incentive,
which covers 70 percent of the project cost or a maximum of $125,000. SJG offers financing of up to 30 percent of
the project cost, up to a maximum of $53,571, with no money down at zero percent interest for a 3-year term.
Social Marketing and Education Program - This new program focuses on marketing and education designed to encourage residential customers to reduce their energy consumption, and their environmental footprint, by comparing them to other similar homeowners through customized energy reports. The program will target a community of
approximately 170,000 residential customers based on their energy usage.
District Energy & Cogeneration Facilities:
Non-regulated Initiatives – Creating Efficiency
Through On-Site Energy Production
Montclair
Both Marina Energy and Energenic specialize in
on-site energy production facilities that are highly
efficient and cost-effective. We currently own and
operate facilities at numerous sites of various configurations, including central utility plants, combined
heat & power projects, solar photovoltaic arrays, and
landfill gas-to-electric generation.
In June 2012, Montclair State University and Energenic announced a major public-private construction project, launched under the 2009 New Jersey
Economic Stimulus Act, to develop a new central utility plant, including a combined heating, cooling, and
power (CHCP) system for the Montclair State campus.
The project commenced operations in September,
2013.
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This $90 million public-private partnership – the second for Montclair State and only the third statewide
at the time – enabled the University to replace its
former heating and cooling system without funding
from either the University or the state of New Jersey.
The state-of-the-art facility and its related infrastructure improvements replaced an energy plant which
began generating steam in the 1940s. The project
operation will deliver cost-effective, efficient, and
reliable heating, cooling, and electric service to campus buildings.
ery unit. The electricity generated replaces power
normally drawn from the taxed local electric grid.
The thermal energy offsets current MTF boiler and
electric chiller operation with resulting production
efficiencies exceeding those of the existing equipment.
The scope of the project included the design, construction, operation, and maintenance of the plant
on property leased from the University for a term
of 30 years. The facility provides natural gas-fired
electric generation, chilled water, and steam for heat.
The steam, condensate, and chilled water are delivered to and returned from campus buildings via a
new underground energy distribution system. The
majority of the campus’ electricity is provided by the
5.4 MW combustion turbine-generator integral to
the central plant facility. Other major project components include a heat recovery steam generator to
capture the exhaust from the turbine, electric- and
steam-driven chillers, steam boilers, cooling towers,
and a backup generator.
Downtown Hartford
Energenic owns and operates the Hartford Steam
Company, a district energy system including 570,000
lb/hr of steam capacity, 31,500 tons of cooling capacity, 11 MW of combustion turbine electric generation, and 2.1 million gallons of chilled water storage.
The system operates in two locations in downtown
Hartford, CT, and serves over 30 customers in over
40 buildings. The main system has been online since
1962, and continues to deliver thermal and electric
energy at efficiencies well above those that could be
provided by stand-alone systems. Energenic has also
added a 1.4 MW fuel cell project to the system which
will produce electricity and steam from natural gas
with negligible emissions. The fuel cell project came
online in July 2014.
Borgata
The Marina Thermal Facility is our largest project,
providing the Borgata Hotel Casino & Spa (along
with its Water Club expansion) with electricity,
heated water, and chilled water used for lighting,
power, air conditioning, space heating, and domestic
hot water production. MTF also provides electricity to the casino and the PJM grid during periods of
emergency and peak electricity demand.
In December 2010, Energenic installed a CHCP project adjacent to MTF. The project includes a combustion turbine, a waste heat recovery unit, and two
absorption chillers. The turbine generates 7.9 MW of
electricity, with its exhaust gas producing 38 mmBtu/
hr of useful thermal energy from a waste heat recov-
Parx Casino
PPB Energy Partners, LLC is an Energenic special-purpose entity that acquired the central utility plant providing heated and chilled water to the Parx Casino
at the Philadelphia Park Racetrack in Bensalem, PA.
The facility provides the casino 3,900 tons of cooling
15
capacity, 1,250 boiler horsepower of heating capacity, and 5 MW of emergency generation. Energenic
is currently discussing plans to expand the central
utility plant to serve additional Parx Casino load.
several municipalities in Massachusetts totaling 9.2
MWs, a 15.5 MWs of solar arrays that deliver power
directly to the electric grid, and over 14 MWs of rooftop and open-field arrays serving commercial and
industrial customers in the State. In addition, Marina
Energy constructed 1.6 MWs at multiple sites in the
emerging Vermont market during 2014.
Landfill Gas-To-Electric Generation:
Our corporate commitment to cleaner air and
renewable energy is seen through a number of
projects highlighting this effort. Energenic has
landfill gas-to-electric projects (LFGTE) online in
Atlantic, Burlington, Salem, Sussex, and Warren
counties in New Jersey, a project outline in Frederick
County, Maryland and another online in Clark
Country, Nevada. The electric capacity of these
combined projects is over 32 MW. The main result
of these projects is the conversion of more than
20 million pounds per year of environmentally
harmful methane gas which is converted into
electricity capable of powering approximately 11,000
residences.
Projects Under Construction
Marina Energy is currently in the process of or planning to construct approximately 52 MWs of photovoltaic generation at multiple sites through 2015.
Planned solar projects include 47 MWs of ground
arrays which will supply the PJM grid and 4 MWs
of solar arrays which will serve school districts and
industrial facilities in New Jersey.
Solar Renewable Energy Certificates
In total, company related solar projects are projected to produce a total of 142,000 Solar Renewable
Energy Certificates, or SRECs, during 2015. SRECs
represent the environmental attributes from a solar
facility, and one SREC is awarded each time a solar
system produces one thousand kilowatt-hours of
production. For a solar facility to be credited with
that SREC, the system must be certified and registered. SRECs exist in states like New Jersey and
Massachussetts, which have Renewable Portfolio
Standard legislation with specific requirements for
solar energy. In conjunction with state and federal
incentives, solar project owners can recover their
investment by selling their SRECs. The additional
income received from selling SRECs boosts the economic value of a solar investment and assists with
the financing of the technology.
Solar Photovoltaic Electric Generation:
Operating Projects
Strong leadership from the New Jersey State government and the Board of Public Utilities, along
with substantial federal tax incentives has created a
favorable environment for solar photovoltaic project
development. Marina Energy and Energenic have
constructed over 161 MWs of solar PV projects to
date at more than 84 locations throughout the state.
In 2014, Marina Energy completed a 1.1 MW roof
array project for an educational facility in Southern
New Jersey. Other projects include solar arrays at
Positive Environmental Impact
To showcase the overall environmental benefit of the
solar projects completed during 2014, the energy
produced by our fleet:
ŠŠ Offset 80,050 tons of CO2 – the equivalent
of over 2 million trees
ŠŠ Could power nearly 700,000, 60 watt light
bulbs for 1 year
16
ŠŠ Saved just over 9 million gallons of gasoline
One of the first contractors in New Jersey to become
a Gold Star Building Performance Institute accredited
energy auditor, SJESP performs energy audits and
recommends and installs energy efficiency measures and equipment. This work increases a home’s
comfort, ensures appliances work safely and reduces
energy usage, lowering energy bills.
ŠŠ Avoided the use of more than 55 million
gallons of water by a coal fired power plant
Non-regulated Initiatives – Reducing Customers’
Energy Consumption
South Jersey Energy and South Jersey Energy Service
Plus remain uniquely positioned to advance New
Jersey’s clean energy objectives.
Since 2011, SJESP has partnered with Home Serve
USA, a leading supplier of home repair programs,
and has the exclusive right to renew the service contracts of the appliance service business as they come
due. This agreement has allowed SJESP to continue
growing its business while freeing up resources for
installation, service and maintenance of HVAC systems in South Jersey.
SJE has been at the forefront of energy efficiency
by performing energy audits and offering efficient
products and services to commercial customers for
well over a decade.
Over the years, lighting retrofit projects completed
by SJE have resulted in annual electric savings of
approximately 18 million kilowatt hours and annual
CO2 reductions of nearly 24 million pounds for our
clients.
Vehicle Emissions Reductions
In our efforts to reduce CO2 emissions, SJI established a policy in 2008 of purchasing hybrid vehicles
in the classes of vehicles available for supervisory
employees who drive company vehicles. SJI currently has 52 hybrid vehicles in its fleet. The choice of
hybrids over standard gasoline-powered vehicles is
producing a savings in CO2 emissions of more than
139,000 pounds per year.
SJESP is a leading authority in high efficiency HVAC
and plumbing services and solutions. Through New
Jersey’s Clean Energy programs we promote high
efficiency, ENERGY STAR rated residential heating
and cooling equipment and commercial equipment
upgrades through the Direct Install Program.
Throughout the United States, the use of compressed natural gas for commercial fleets continues
17
to gain popularity. South Jersey Gas is proud to
support the needs of customers in various stages of
converting their fleets. Our support of those customers includes ensuring adequate system pressures and
providing consultative expertise.
SJG is also collaborating with other utility companies and advocacy agencies in the United States to
develop a nationwide fuel infrastructure. In addition to supporting customers’ fleet conversions to
compressed natural gas, fueling infrastructure in
SJG’s service area is supporting our company’s fleet
conversion.
Also, in April 2014, we announced with Wawa Inc., a
joint project to bring CNG fueling to a station within
our service territory. Wawa selected it’s Paulsboro, NJ
location, adjacent to Route 295, to incorporate CNG
fueling. The station is expected to be complete in
late 2015.
Millennium Account Services, LLC, our joint venture
investment with Conectiv Solutions, has provided
meter-reading services to SJG and Atlantic City Electric Company for the past 15 years.
To provide this service, in 2014 Millennium employees traveled approximately 919,815 miles, used
60,119 gallons of fuel, and prevented 1,202,380
pounds of carbon dioxide from escaping into the
atmosphere. From its inception, this joint venture has
allowed each utility to:
We have also made the commitment to convert our
fleet entirely to CNG. To service our fueling needs
and expand fueling options in our service territory,
we have opened three CNG fueling stations since
2012 – two on SJG property in Millville and Glassboro, and one at the site of a private business, MJF
Materials, in Lindenwold, NJ. We will continue exploring options to add CNG fueling capabilities on SJG
property, at the site of private facilities in proximity
to our divisional operations and through continued
opportunities with traditional fueling stations.
ŠŠ Conserve more than 18,429,015 miles
ŠŠ Avoid consumption of 1,206,319 gallons of
fuel
ŠŠ Prevent the discharge of 24,104,580
pounds of carbon dioxide into the atmosphere
The benefits of using compressed natural gas vehicles in fleets include reductions in greenhouse
gases on average of 20-29 percent. In SJG’s situation,
reductions amount to 26-29 percent in the light
duty category that encompasses most of our fleet.
Another benefit is that while the demand for global
supplies of petroleum continually increases, with
natural gas domestically plentiful, the United States
is reducing its dependence on foreign oil supplies
and becoming more energy independent.
Additionally, and in response to the constrained
domestic liquefied natural gas market, South Jersey
Gas is constructing a liquefaction unit at our McKee
City LNG facility. The liquefier will provide SJG with a
more secure and cost effective supply of LNG during
times of peak demand, as opposed to our current
process of having supplies of LNG trucked in from
other states. In fact, once completed, operation of
the liquefier will offset more than 500 truckload shipments of LNG per year, saving approximately 500,000
18
miles of associated heavy duty vehicle emissions.
Permitting for this project has been completed and
the engineering design and procurement of equipment are underway. Project completion scheduled
for mid 2016.
gate and/or remediate 14 MGP sites. In cooperation
with the New Jersey Department of Environmental Protection, SJG has ongoing investigation and
remediation activities at 12 of the 14 sites. One site
was determined to not be a typical manufactured
gas plant site and the case was closed by the NJDEP.
Liability for the second site was transferred by agreement to a third party.
Land Impacts
Manufactured Gas Plant Site Remediation
SJI successfully entered into settlements with all of
its historic comprehensive general liability carriers
regarding the environmental remediation expenditures at the SJG sites. Also, SJG purchased a Cleanup
Cost Cap Insurance Policy limiting the amount of
remediation expenditures that SJG was required to
make at 11 of its sites. This policy provided coverage
up to $50 million, which was exhausted in 2012.
During the late 1800s and early 1900s, numerous
towns and cities across the United States used manufactured gas to light lamps, heat buildings and to fire
appliances for cooking. The gas produced at these
plants, also referred to as MGPs, was made by heating coal, oil or other feedstocks in oxygen depleted
ovens then collecting the gas emitted during the
heating.
SJG also has a rate mechanism in place to recover
environmental remediation costs at 12 MGP sites.
The Remediation Adjustment Clause allows SJG to
recover these costs over 7-year amortization periods.
Since implementing the RAC in 1992, SJG has recovered $106.1 million through rates as of December 31,
2014.
It is estimated that between 3,000 and 5,000 MGPs
were built in the United States. When the interstate
pipeline system brought natural gas to market in the
1950’s, MGP’s rapidly ceased operations. Due to the
nature of the products and processes used at these
plants, many left behind by-products that are being
cleaned up to meet current environmental standards.
Remediation at Discontinued Nonutility Subsidiary
Sites
Due to the fact that SJG’s predecessor companies
operated the plants, the company agreed to investi-
In addition to the remediation liabilities associated
with the MGP sites, SJI also maintains environmental
19
energy efficiency upgrades to Cedar Run’s
rehabilitation hospital.
responsibility at several properties owned by two
discontinued nonutility subsidiaries. Due to historic
activities at the sites such as fuel storage, maintenance and fueling, four sites previously owned by
South Jersey Fuel and nine sites previously owned by
The Morie Company are currently at various stages
of environmental investigation or remediation. Four
of the sites have been completely investigated and
remediated.
ŠŠ Coastal America Foundation provides
support to the national Coastal America
Partnership and its initiatives that protect,
preserve and restore aquatic habitats. This
support includes education and outreach
through Coastal Ecosystem Learning
Centers, marine science studies, military
training exercises that restore the environment and the Corporate Wetlands Restoration Partnership initiatives, nationally and
internationally.
From the early 1980’s through December 31, 2014,
SJI has spent approximately $224 million on combined remediation activities for both utility and non
utility operations.
ŠŠ Conserve Wildlife Foundation of New Jersey is a statewide organization dedicated
to protecting the rare and imperiled species of wildlife that live and breed in, and
migrate through, New Jersey. CWF carries
out original research to identify population trends and species needs; implement
conservation projects that protect declining species on a single animal, community
or population basis; restore habitat for
rare species; educate the public about the
biodiversity on their doorstep and the need
to protect it, and engage a large network of
volunteer citizens to assist our small staff in
their endeavors.
Wildlife and Wetlands Protection Efforts
SJI’s commitment to the environment and a sustainable future extends beyond compliance – it’s rooted
in the communities we serve. We provide support
through sponsorships and donations to various
organizations committed to protecting wildlife and
wetland areas in New Jersey:
ŠŠ Cedar Run Wildlife Refuge, located in
Burlington County, educates the public on
local wildlife, treats more than 4,000 wild
ŠŠ Jersey Shore Partnership is an advocate
of initiatives important to Jersey Shore
coastal communities with an emphasis on
shore protection and beach replenishment,
including tourism, coastal resources, vital
infrastructure, education and emergency
preparedness – issues which are also of
importance to SJI. We have supported this
organization through board membership
and contributions for several years.
ŠŠ The Marine Mammal Stranding Center is
dedicated to the rescue, rehabilitation and
release of stranded or otherwise distressed
marine mammals and sea turtles along the
1,800-mile New Jersey coastal waterway.
MMSC is committed to the preservation of
animals in their rehabilitation hospital each
year, and works with state and local agencies to preserve land and protect vital habitats. SJI’s support helped to fund necessary
20
our oceans and the education of the next
generation through public information and
internship programs.
ŠŠ New Jersey Audubon fosters environmental awareness and conservation, and protects New Jersey’s bird, mammals, plants,
and endangered species. SJI is part of a
unique group of New Jersey companies
that make up the Corporate Stewardship
Council, united behind a common goal of
environmental sustainability and responsibility as it pertains to the land they own.
Each member company works closely with
New Jersey Audubon to evaluate habitat
restoration or enhancement potential on
its property or affiliated sites. Once identified, the partners work together to develop and implement a conservation plan
intended to improve upon existing conditions and enhance habitat for rare wildlife
and plants. South Jersey Gas has one such
site adjacent to its Cape May divisional office, and has received a Forest Stewardship
Council certification, an internationally
recognized standard for responsible forest
management. The 13 acre site is a critical
forested habitat for breeding and migrating songbirds, and rare amphibians including the Eastern Tiger Salamander and
Cope’s Gray Tree Frog. Forest stewardship
activities at the site will focus on enhancing forest health, diversity and integrity.
inventories and potential regulations to restrict GHG
emission levels.
The US Environmental Protection Agency finalized a
Mandatory Greenhouse Gas Reporting Rule, which
required LDCs like South Jersey Gas to put in place
monitoring and recordkeeping systems that are establishing the baselines for reporting that went into
effect in 2010.
SJI management understands that there are risks and
opportunities associated with this challenge. Our responsibility to customers and shareholders is to prepare for a carbon-constrained economy in the future.
Our company has taken action to better understand
the sources and magnitude of GHG emissions for our
overall enterprise, including a comprehensive GHG
inventory completed in 2010. Using this information, we are regularly evaluating options to reduce
GHG emissions within our operations and continue
developing options for our customers to reduce their
emissions as well. We are committed to remaining
informed about GHG policy developments and to
developing strategies that allow us to capitalize on
opportunities stemming from climate change initiatives.
Air Impacts
Climate change represents a serious challenge for
virtually all industry sectors – particularly those
dealing with energy generation and distribution. At
a national level, the debate has moved past discussions about science and is now focused squarely
on policy responses. In the last three years, several
key policies have been initiated to facilitate more
detailed accounting of company greenhouse gas
21
South Jersey Gas tracks the greenhouse gas emissions of its natural gas delivery system on an annual
basis. In 2014, SJG infrastructure emitted 95,445.7
metric tons of CO2 equivalent emissions from its system, a decrease of 13 percent from prior year emissions. As SJG continues its prudent infrastructure
replacement programs, removing its more aging and
leak prone infrastructure and replacing with secure
plastic or wrapped steel piping, these numbers are
expected to continue their steady decline year over
year.
that provides tools, training and financial incentives
to support communities as they pursue sustainability programs. By supporting community efforts
to reduce waste, cut greenhouse gas emissions, and
improve environmental equity, Sustainable Jersey is
empowering communities to build a better world for
future generations.
This mutually beneficial relationship works well as
SJ’s initiatives directly complement SJG’s energy
efficiency and sustainability focus. To that end, SJG
helped to sponsor the creation of Sustainable Jersey’s South Jersey Hub, providing a framework that
connects local leaders with resources and partners.
By linking hub participants with state, regional,
nongovernmental and business resources, as well as
showcasing successful projects, communities become better equipped to advance their sustainability
agendas.
Sustainable Jersey
South Jersey Gas began its relationship with Sustainable Jersey in 2013 in an effort to increase the profile
of Sustainable Jersey throughout our service territory. Sustainable Jersey is a nonprofit organization
Managing Materials and Resources
of our divisional locations not serviced by municipal pickup. This program maximizes the volume of
recyclable materials as sorting of commingled waste
is completed off-site and processed in materials reclamation facilities accordingly.
SJI recycles lighting elements, such as fluorescent
light tubes and lighting ballasts, collected throughout the organization, as well as worn carpeting. SJI
also participates in e-recycling programs for PCs,
monitors, batteries and mainframes.
Energy Consumption and Energy
Efficiency
Recycling
In recent years, SJI has sought opportunities to
increase energy efficiency in company facilities and
operations. SJI implemented a boiler/heater and air
conditioning replacement program whereby higher
efficiency units are installed in all company locations as existing units reach the end of their service
lives. Boilers in our corporate headquarters and
one divisional office have been replaced with more
efficient units resulting in less natural gas consumption. Through June 2015, we have replaced 33 of 35
All SJI facilities have comprehensive recycling programs in place. Recycled materials include paper,
cardboard, glass, plastic and aluminum. Due to the
numerous vendors collecting from our facilities,
including municipal and county entities, our ability to quantify our recycled material is limited. A
single stream private recycling program has been
implemented in our Folsom headquarters and three
22
natural gas fired absorption air conditioning units at
divisional facilities with higher efficiency models resulting in less natural gas consumption. The remaining units are planned for replacement.
cent of the building’s energy needs, while the McKee
City system generates 100 percent of the energy
needed at both its operating office and LNG plant.
SJG Headquarters
Other efforts to reduce electric and natural gas consumption at our facilities include interfacing all HVAC
equipment into automated energy management
systems. Thus far we have completed these projects
in our corporate headquarters and three divisional
locations. Similar systems are planned for the remainder of our divisional facilities over the next five
years.
South Jersey Gas is currently considering a potential
transition of company headquarters to Atlantic City,
as part of a large scale redevelopment effort. While
SJG is currently in the process of soliciting firm cost
estimates for constructing a new office, should plans
proceed, the space will be built using Leadership in
Energy and Environmental design (also known as
LEED) standards and processes. Developed by the
U.S. Green Building Council (USGBC), LEED helps
building owners and operators be environmentally
responsible and use resources efficiently.
Our corporate headquarters and all divisional locations (both office space and inventory storerooms)
are outfitted with occupancy sensors to maximize
efficiency in our lighting systems. Additionally, we
have invested in retrofitting our facilities with energy
efficient lighting; both of these initiatives help to
reduce overall corporate electric consumption. SJI
also installed spray polyurethane roofs to replace traditional roofing systems at five SJI facilities. This type
of roofing system provides a higher insulation value,
which reduces energy consumption.
Water Management
Water control faucets and water conserving fixtures
have been installed during restroom renovations and
as or when repairs/replacements are required in our
company locations.
Green Cleaning
The janitorial service company employed by SJI uses
only Green Seal Certified cleaning products, which
have a low impact on the environment and the
health of our employees. HEPA vacuum cleaners are
used to improve indoor air quality and only microfiber mop heads and rags are used, laundered and
reused.
Solar Projects at SJI Facilities
Two solar projects have been completed at SJI facilities – one at the corporate headquarters in Folsom
and the other at the company’s McKee City facility.
Folsom’s solar system provides approximately 5 per-
23
Social Impact
Labor Philosophies, Policies and
Practices
Employee Recruitment
SJI’s goal is to attract, develop and retain the best
talent, and leaders who are reflective of our diverse
customer base. We are focused on creating a culture
where all employees feel respected, appreciated and
are able to contribute value based on their skills,
knowledge and experiences to generate new ideas
and provide superior service. SJI uses a variety of
means to recruit employees for open positions:
SJI has policies and procedures in place that help
us acquire and retain high quality employees. We
expect our employees to perform their jobs in
conformance with commonly accepted workplace
standards, courtesy and common sense. Our employees’ actions are guided by our corporate values
of integrity, highest standards of safety, innovation,
performance and respect.
SJI’s Human Resources Policy addresses Equal
Employment Opportunity and Affirmative Action/
Non-Discrimination practices. SJI is fully committed
to ensuring that the principles of Equal Employment
Opportunity and Affirmative Action and Non-Discrimination are enforced and endorsed by all employees.
The policy states that SJI will:
ŠŠ Recruit and hire employees without regard to race, color, religion, gender, sexual
orientation, age, national origin, physical or
mental disability or veteran’s status
Website: SJI uses an online applicant tracking
system that provides a number of benefits to the
company in the area of recruitment. In addition to
improving productivity and efficiencies, the system
enables SJI to attract and focus on the most appropriate candidates for positions. The system is available on SJI’s website, www.sjindustries.com, under
the heading Careers. Anyone who has internet capabilities can view and apply for open positions.
ŠŠ Treat employees equally with respect to
compensation, benefits, opportunities for
advancement, including upgrading, promotion and transfer and all other privileges, terms and conditions of employment
ŠŠ Provide equal employment and advancement opportunities on the basis of individual qualifications and job performance
Online Career Postings: We post positions on CareerBuilder.com, Jobs 4 Jersey, Hero 2 Hired, LinkedIn
and other sites targeting specific fields of talent as
appropriate to attract diverse external candidates
to SJI. When advertising we identify our company as
an Equal Opportunity Employer in all ads displaying
our commitment to diversity and transparency in our
hiring process.
ŠŠ Maintain a working environment that is
free from harassment
ŠŠ Promote a values based culture
24
Industry/Trade/Affinity Group Organizations: Depending upon the position we’re seeking to fill, we
contact various organizations to ensure appropriate
expertise and diversity of candidates. As an example,
if we are looking to fill an engineering position we
may contact the following organizations: American
Society of Civil Engineers, New Jersey Professional
Engineers, Society of Women Engineers, and National
Society of Black Engineers.
Technical School and College Recruiting: College
recruiting is a viable way for our organizations to
build bench strength while injecting innovative ideas
and perspectives into the workplace. We annually
participate in a variety of college/university career
fairs. We include events attended by minority group
members, veterans and the disabled. In addition, we
partner with technical schools so they understand
the unique needs of our business.
Workforce Demographics
As of June 30, 2015, SJI had 716 employees:
ŠŠ 96 at the SJI corporate level
ŠŠ 482 in the utility (SJG) encompassing all
locations
ŠŠ 138 in the non-regulated companies (SJES
and its subsidiaries)
ŠŠ Forty-five percent of our total workforce at
SJI is represented by unions:
International Association of International Brotherhood of
Machinists (IAM)
Electrical Workers (IBEW)
Local 76
Local 1293
South Jersey Gas
Glassboro
Pleasantville
Millville
Waterford
McKee City
Folsom
Swainton
South Jersey Energy Service Plus
47
47
37
35
19
70
27
25
37
3
Governing Bodies
Composition of SJI Board of Directors.
Under 50
Women
Men
1
1
Age Group
Between
50-60
2
Over 60
6
Racial Group
AfricanCaucasian
American
2
6
1
Asian
1
Composition of SJI Senior Officers.
Under 50
Women
Men
1
3
Age Group
Between
50-60
Over 60
1
3
Diversity
Racial Group
AfricanCaucasian
American
1
1
6
Asian
another. The Women’s Leadership Initiative shares
ideas and information throughout the organization and sponsors educational activities that are not
exclusive to the group’s membership but that benefit
the organization as a whole.
SJI works to ensure that all levels of the workforce
reflect the composition of the region we serve. Our
commitment to inclusion includes welcoming and
supporting employees from all backgrounds so they
can achieve their full potential. We strongly believe
that differences of culture, circumstances and view
play a key role in broadening our ability to grow our
company and that a diverse workplace maximizes
employee performance and creates value for our
customers and our shareholders.
The group is supported by three key committees
tasked with identifying activities that will allow the
women of SJI to create connections and support
across functional areas and throughout the organization. The Community Involvement Committee
identifies and develops community service initiatives
to benefit key agencies and non-profits throughout
the region. The Education Committee was formed to
create a culture that encourages learning and growth
by providing opportunities that support education
and encourage collaborative and professional dialog.
The Networking and Mentoring Committee works to
develop networking events as well as coaching and
mentoring opportunities both with internal staff and
external mentors from a variety of organizations.
SJI’s minority representation continues to increase.
In 2014, minorities accounted for approximately 18
percent of our workforce, and females accounted for
approximately 39 percent of our workforce.
As part of our diversity activities, we have a Women’s
Leadership Initiative founded on the principle that
the participants and SJI will benefit from the encouragement of growth and development, on-going
mentoring and the sharing of information and
expertise. The group strives to develop a strong community where members communicate, educate, collaborate, influence, network with and encourage one
Several employees of SJI are members of the South
Jersey Chapter of the American Association of Blacks
in Energy. AABE is a national association of energy
professionals founded and dedicated to ensure the
input of minorities into the discussions and developments of energy policy regulations, R&D technolo-
26
ŠŠ To encourage minority students to pursue
careers in energy-related fields and to provide scholarships and other financial aid for
such students.
SJI’s Supplier Diversity Program is another example
of our commitment to diversity and inclusion. We
value the contributions of a diverse array of suppliers
to support SJI’s team in providing exceptional customer services and products. Our Supplier Diversity
Program aims to increase opportunities for retailers
while expanding the number of women and minority owned vendors with whom we do business. SJI
is proud to be a member of the New Jersey Board
of Public Utilities’ Supplier Diversity Development
Council, which is dedicated to forging effective working relationships between minorities, service disabled veterans and woman-owned businesses and
New Jersey’s public utilities.
gies, and environmental issues. The group is expanding membership to other organizations in southern
New Jersey.
The South Jersey Chapter has three standing committees: Networking and Communication; Community Service and Scholarship; and Education and
Awareness. Through these committees, SJAABE
provides scholarships to students entering college,
performs community service, and conducts employee enrichment sessions.
Fairness Training
SJI regularly trains its employees to avoid engaging
in behavior that could constitute discrimination or
harassment based on a characteristic prohibited by
State or Federal law. In addition, we train employees
on what to do if they view or feel they are victims of
harassment or discrimination. As part of this training,
company policies on anti-harassment and discrimination that strictly prohibit harassing and/or discriminating behavior, are reviewed with employees.
The purposes of AABE are the following:
ŠŠ To serve as a resource for policy discussion
of the economic, social and political impact
of environmental and energy policies on
minorities.
We provide ethics training to newly hired employees
within a short time of hire that encompasses anti
harassment/discrimination training. Further, we give
new hires our HR policy/procedure manual, which
contains anti harassment discrimination policies and
employees sign off on an acknowledgment of receipt
and understanding of those policies.
ŠŠ To ensure involvement of minorities in governmental energy policymaking by recommending capable, sensitive and informed
personnel to appropriate officials.
ŠŠ To encourage both the public and private
sectors to be responsive to the problems,
goals and aspirations of minorities in
energy-related fields.
The company also provides employees with a web
portal through which they can anonymously report
behavior they believe to be problematic. Through
MySafeWorkplace.com employees have access to a
third party complaint mechanism in addition to the
company’s internal complaint procedures.
27
Occupational Safety and Health
Philosophy/Policy
Public safety and the safety of our employees are
primary concerns of SJI. We view the enforcement of
a safe work environment as a shared responsibility
among all employees. SJI has based its safety philosophy on six principles:
ŠŠ All injuries can be prevented
ŠŠ Management is dedicated to preventing
injuries and illnesses
ŠŠ All hazards can be controlled
ŠŠ Promote accountability for safety at all
levels of the organization
ŠŠ Safety is a condition of employment
ŠŠ Ensure that adequate resources are provided to achieve the company’s safety and
health goals
ŠŠ Employees must be trained to work safely
ŠŠ Preventing injuries is good business for
everyone
ŠŠ Evaluate the effectiveness of the company’s
safety and health programs and modify
programs as required to improve performance
Safety and Health Steering Committee
SJG has in place an effective Safety and Health
Strategic Steering Committee that leads the development of the company’s safety and health environment by providing guidance, making decisions
and establishing policies that reduce accidents and
injuries and maintain or improve the health of our
employees, contractors and the general public. The
committee has tried to leverage the positive momentum generated by its recent receipt of the AGA
and NGA Excellence in Safety & Health awards. The
steering committee’s responsibilities are to:
ŠŠ Evaluate the impact of legislation or regulatory actions in the areas of safety and
health and ensure responses to the changing environment are timely and appropriate
ŠŠ Ensure that lessons learned from safety
incidents are communicated and implemented across SJG
ŠŠ Safety is our number one operational priority, and our safety program has continued
to produce excellent results.
ŠŠ Ensure that safety remains a core value for
the company by providing oversight of
safety performance and leading communications activities in areas of safety and
health
Safety Goals
Through 2014, SJG continued its commitment to
reducing the number of OSHA recordable incidents
and preventable motor vehicle accidents. Our goal in
2015 is to aggressively pursue improvement in safety
ŠŠ Establish goals, policies and programs that
support the creation of a safe and healthy
work environment
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ŠŠ Proper lifting techniques
performance with the ultimate goal of zero injuries and zero preventable motor vehicle accidents,
while tracking our injuries and determining the root
cause of injuries. In pursuit of this objective, we are
attempting to achieve top quartile performance
amongst all AGA member Gas Companies by 2017.
ŠŠ Gas leak investigations
Through May 2015, SJG has had six preventable
motor vehicle accidents. We will continue to provide
the necessary driver training to all employees with
the goal of bettering our performance in the future.
The American Gas Association has taken note of our
excellent driving record and SJG was recently presented an award for fleet safety.
Our goals are not limited to only reducing the number of incidents, but improving safety awareness.
Utility Safety Training
Our training staff also provides training to fire departments in our service area. The training program
instructs fire personnel on how to respond to emergency situations involving natural gas. Recently, we
updated this training with a presentation we developed in house. The training uses PowerPoint and videos to emphasize the importance of proper response
by first responders. This new presentation has been
provided to various fire departments throughout
SJG’s service territory.
SJG’s technical training center provides necessary
training revolving around safety practices to service
and street department employees. Some of the programs offered include:
ŠŠ Defensive driving
ŠŠ Safe driving practices for utility trucks
ŠŠ Incident Command System
Incident/Accident Targets
Incident/Accident Actual*
OSHA Recordable Work Incidents
<16
4
Lost Time Accidents
<9
1
Preventable Motor Vehicle Accidents
<7
6
*YTD Actual as of May 31, 2015
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Public Safety & Gas Leaks
SJG has implemented a very successful accelerated
infrastructure replacement program resulting in
the number of open leaks system wide being under
1,000 for the first time in many years. In addition, we
recognize that finding and fixing leaks before our
customers call them in is very important. Towards
that end, SJG is a first quartile performer with our
leak survey process. Intense internal scrutiny and
audits have contributed to strong performance in
this area.
SJG believes there is a strong connection between
safety and training. In 2014, we successfully implemented our Operations Technician Training Program.
The program was implemented in conjunction with
several local community colleges, the NGA, and local
workforce investment boards. This effort is intended
to help build a pool of qualified applicants for SJG
and our contractors. The program has continued
its success in 2015 and has now graduated over
50 students since inception. These graduates have
received jobs with SJG or our contractors providing
a nice boost to our local economy. We have received
industry recognition for this unique program and we
have shared this training model at numerous industry gatherings including the NGA, AGA and NGDC
meetings.
Motor Vehicle Safety
SJG has a unique emphasis on driver safety and we
have a program in place that provides employees
with “on the road” driver training. Employees also get
training related to truck & trailer safety. Our Reportable motor vehicle accidents per 1,000,000 miles
driven were reduced from 3.52 in 2013 to 2.78 in
2014. Also, our Preventable Motor Vehicle Accident
rate per 1,000,000 miles driven was reduced from
2.35 in 2013 to 1.74 in 2014. Another very positive
outcome was our receipt of AGA’s 2014 Excellence in
Fleet Safety Award.
Emergency Response Preparedness
The Federal Office of Pipeline Safety has pipeline
public awareness requirements that utilities such as
SJG must comply with based on American Petroleum
Institute Recommended Practice 1162 and DOT
Pipeline Public Awareness Rule. Public awareness
programs are important in helping the public understand that pipelines are the major transportation
system for natural gas in the United States, how pipelines function and their responsibility to help prevent
damage to pipelines. When effectively and consistently managed, a public awareness program can
enhance public safety, improve pipeline safety and
environmental performance, build trust and better
relationships with the public along the pipeline route
and enhance emergency response coordination.
Public Safety & Damage Prevention
SJG’s pipeline safety awareness program targets messages to customers, non-customers who live near
pipeline facilities, emergency officials, public officials
and excavators.
Despite increased contractor activity and requests
for mark outs, we had fewer damages through 2014
versus 2013 and the number of excavation damages
per 1,000 tickets received was reduced by 10 percent
as compared to the prior year’s rate. In addition, we
actively participate on the New Jersey Common
Ground Alliance and have a seat on their Board.
As part of our safety awareness efforts, SJG personnel are involved in the Common Ground Alliance.
This group raises facility damage prevention awareness on a national and statewide basis. The national
811 “Call Before You Dig” phone number is promoted
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Employee Health & Wellness Program
through bill inserts, news releases and social media messages, on our website, through municipal
meetings, and in meetings with first responders and
excavators. During these events we make presentations that educate first responders and excavators on
exercising care when excavating or doing construction work. A breakfast presentation was developed
by the four NJ natural gas distribution companies
along with the NJBPU and NJ One Call that is targeted at excavation contractors. Since 2011, SJG has
been providing these presentations for excavators in
our service territory. South Jersey Gas also recently
provided public education and outreach efforts at
local Home Depots in our operating territory.
SJI recognizes the importance of promoting healthy
living and equipping its employees to make positive
lifestyle choices. The company recently took steps
to develop and initiate a comprehensive corporate wellness program. In addition to outfitting SJI
employees with the tools to manage and improve
their health through education and motivation, the
development of a
corporate wellness
program is expected to provide
other benefits as
well.
Promoting healthy,
safe behavior is
fundamental in
improving overall
health and can lead to reduced absenteeism, improved capacity to learn, improved ability to focus,
and improved mental alertness. A wellness program
can also positively impact employee retention, as
employees are more likely to be attracted to, remain
with, and value a business that supports and encourages wellness at a corporate level.
Due, in part, to our extensive educational activities, the number of damages to our facilities has
decreased over the years. This shows an increased
awareness by the excavating community of the care
needed in working around our facilities. Also, our
focus on operational excellence has resulted in fewer
errors by our locators and in recent years we have
performed significantly better than national averages in this area. Through June, we have had 46 fewer
damages than last year at the same point in time and
currently have the best ratio in the state amongst gas
companies.
Health and wellness programs have financial benefits
as well, as over a period of time; they have the potential to reduce health care costs for corporations and
their employees. These programs have been proven
to provide significant return on investment, averaging about $3-$6 for every $1 invested in health cost
savings. Research also indicates that wellness programs reduce the number of short and long-term
disability and workers’ compensation claims.
SJG recently participated in an emergency preparedness table top exercise sponsored by the Federal and
State Departments of Homeland Security. The emergency drill strengthened the working relationships
that we have with local organizations and helped
all involved to better prepare for another potential
emergency. The NJ BPU was also part of this effort.
Smoke Free Workplace
In 2009, SJI implemented a smoke free campus policy to promote better health, provide a comfortable
working environment and to ensure compliance with
applicable laws. The policy was developed to protect
all employees, customers and visitors from exposure
to secondhand smoke and reduce the harmful im-
31
Discount Programs
Cafeteria Healthy Menu Subsidy:
“It Pays to Eat Healthy.” Employees
can select food items from the
Healthy Heart Menu for a 50 percent
discount.
Wellness Reimbursement Program.
Employees were reimbursed 100
percent of their gym membership
or weight loss fees (up to $50 per
person) for self plus one dependent.
Flu Shots. Employees were offered
free, on-site flu shots. Also provided
were vouchers for employees and
adult dependents to receive free flu
shots at any CVS pharmacy.
Fitness Activities
Educational Seminars
National Walk Day – provided pedometers to each walker
Sugar Basics
March of Dimes
Women’s Health
Heart Walk
Heart Health
Walking Trail on corporate campus
Blood Drive held multiple times throughout the year
Men’s Health
These sessions were offered in conjunction with organizations such as American
Heart Association, AtlantiCare, and
CulinArt Group.
Zumba classes held onsite
Kickboxing classes
Mammogram mobile
Weight Watchers at Work Program – SJI subsidized the cost for employees
to join (19 week program).
DVD Fitness Lending Library
Individual Walking Challenge – Employees encouraged to walk 50,000+
steps a week (every week for four weeks) with a weekly check-in.
Stretching Program
Fruit – Complimentary fruit is offered to employees throughout the year
to encourage healthy eating habits.
pacts associated with tobacco use. The policy applies
to inside and outside of company premises and also
extends to company vehicles.
includes: strategic agility, dealing with ambiguity,
business acumen, intellectual curiosity, interpersonal
savvy, and building, motivating and developing
teams. This profile will be used to help select and
attract talent, as well as develop and manage our
employee population.
Employee Development
SJI introduced a core set of leadership competencies (the leadership profile) that will drive our internal processes and develop our talent. The profile
Currently, SJI has established a formal process of
analyzing and reviewing the performance of every
supervisory, administrative and professional employee by his or her immediate supervisor once a
year. The company has adopted the balanced score
card approach to aligning corporate objectives with
the objectives of each business unit, department
and individual in the company for management level
employees. This strategy ensures that the work being
performed by every individual is linked to the organization’s vision and strategic objectives. Management
employees are also rated annually on leadership
profile competencies in addition to the attainment of
their balanced scorecard objectives. Midway through
the review year, supervisors conduct a mid-year review to address how their employees are performing
against their goals.
32
Approximately 55 percent of SJI’s workforce is comprised of non-union employees who participate in
the formal review process. Throughout the year, we
strive to ensure all managers are giving ongoing
coaching and feedback to their employees to drive
towards a high performing culture.
ent job or another position within the company, or
part of a degree program.
Internships/Co-Ops
Our internship and co-op programs offer college and
university students the opportunity to experience
working in their chosen fields under the guidance of
SJI employees. The program gives the students the
ability to put their entrepreneurial talent into action and make the most of their enthusiasm for the
energy sector in the professional world. The students
Career development training and educational opportunities exist for SJI’s employees. SJI subject
experts conduct a course for supervisory employees
based on the Public Utilities Reports Guide, which is
a training manual containing all the basic principles
needed to succeed in the utility industry. The PUR
course covers the topics of public utilities, regulation,
delivery of service, rates and ratemaking, accounting,
finance, organization and management, and market
issues. Employees also attend conferences, seminars
and participate in other development venues as
needed to expand their skills and expertise. In addition, employees and supervisors identify specific
training needs and develop individual plans that
address appropriate training opportunities.
In 2010, SJI began a rotational leadership development program called POWER. Through POWER, SJI
seeks to hire external employees to place in key,
strategic business functions to develop them into tomorrow’s leaders. In 2015, SJI hired four new POWER
employees to help build the internal talent pipeline.
Given the complexities of the energy industry and
our own organization, a leadership development
program provides an excellent way for employees to
learn the business and prepare for greater responsibility.
have made an impact on our business by helping us
grow our products and services, better our processes, and streamline our business. Our goal for the
intern and co-op program is to build a strong pipeline of talent and potentially hire former interns and
co-ops into full time positions upon graduation.
Public Policy
SJI is active in promoting public policy initiatives that
further the best interests of our business. The company drives these initiatives by retaining strategic
guidance and tactical direction to help heighten SJI’s
influence within NJ. In addition, collaboration and
relationship building are the foundations of our strategy to continue positioning SJI as a state and energy
industry leader.
Tuition Assistance
SJI encourages full-time employees to develop their
skills to improve performance in their current jobs
and prepare themselves for future promotional opportunities. As such, the company provides a tuition
assistance program for courses offered by approved
institutions of learning, such as accredited colleges,
universities and trade schools. Courses must be
directly or reasonably related to the employee’s pres-
As a member of the Board of Directors of the Hughes
Center for Public Policy at the Richard Stockton College of New Jersey, former SJI Chairman and CEO,
33
Edward J. Graham, helped to carve out an active role
for the company in promoting green energy information, resources and programming.
time and expertise. By investing in communities to
help them tackle the issues that affect them, we are
investing in ourselves. Through our Social Investment grant program, we provide funding to qualifying 501(c)(3) non-profit organizations demonstrating
the ability to positively impact our communities,
while focusing on needs that closely coincide with
the company’s strategic social investment goals.
SJI has been a member of Choose New Jersey since
2010, where our CEO sits on the Board of Directors.
Choose New Jersey is an independently funded and
operated 501(c)(3) nonprofit corporation created to
encourage and nurture economic growth throughout New Jersey.
We assist as many local residents of our service area
as possible, addressing their critical needs through
our support of community programs, projects and
initiatives. When allocating our social investment
dollars, we focus on organizations that address five
priority areas, outlined below.
Community Investment
Community Investment is more than just charitable
giving. It’s about providing those communities most
in need with not only financial support, but with
34
In our commitment to the community, SJI has provided millions in financial support to local non-profit,
business and civic organizations. SJI and its subsidiaries support more than 150 civic and non-profit
organizations each year that directly and positively
impact the customers and communities we serve. In
addition, our employees volunteer their time to support both business and social service organizations.
Following are some notable examples of our involvement through the Social Investment grant program:
SJI, a supporter of many American Red Cross initiatives throughout the year, funded the newly formed
Southern Shore Youth Volunteer Initiative. This
program provides formal training in childcare, pediatric CPR and first aid, pet first aid and lifeguarding to
economically-challenged young people in an effort
to provide them not only with lifesaving skills, but
skills that lend themselves to employability.
The Governor’s School invests in young professionals
with STEM talent through the GSET summer program, hosted by Rutgers School of Engineering. GSET
creates, develops, and implements a comprehensive
program of study each year that is designed to help
focus students’ interest and become productive leaders in these industries.
The Jersey Shore Children’s Museum, located in the
Hamilton Mall in Atlantic County, offers hands-on exhibits that provide children with the unique opportunity to explore different cultures, occupations, and
environments. SJG sponsors an exhibit at the JSCM
that educates children on natural gas safety and safe
digging practices.
The Research and Development Council of NJ is
dedicated to cultivating an environment that supports the advancement of research and development within industry, academia, and development in
New Jersey.
Burlington County Institute of Technology’s Education Foundation, a non-profit segment of the
vocational-technical high school, raises money for
education-related technology and post-secondary
scholarships. SJI helped the BCIT Foundation offset
the costs of a new Programmable Logic Controller module for the Pre-Engineering career major, as
well as assisted with the construction of an Energy
Audit House, a crucial teaching tool for their HVAC-R
program.
We are also committed to helping ensure that a
quality education remains accessible and affordable
for today’s students and we are pleased to participate in the School Counts! Scholarship program.
Each month, SJG’s customers are given the option
to donate $1 by checking a box on their SJG bill to
commit their support to our local community colleges. As a result of this initiative and the generosity
of our customers, our local community colleges have
received more than $150,000 in scholarship funds.
These funds help reduce out of pocket educational
expenses for qualifying high school seniors in our
area. Through the program, students learn the necessary skills required to be contributing members of
the workforce, guaranteeing that area employers
have access to educated, skilled workers.
In recognizing the growing need for careers in engineering and technology, especially within the energy
industry, SJI supports two organizations working to
develop interest and accessibility in those fields: The
Governor’s School of Engineering and Technology
and Research and Development Council of NJ.
35
SJI is a proud supporter of the United Way, a provider of numerous social service programs all over
the world. In 2014, SJI employees participated in a
successful workplace fundraising campaign benefitting our local United Way of Greater Philadelphia and
Southern New Jersey. Through this campaign, our
sity in the community and the workplace, totaling
more than $112,000. A group working to do just that is:
The Latin American Economic Development Association, nonprofit economic development organization dedicated to the creation of small business
ownership opportunities for all minorities. SJI helps
support business seminars and technical assistance
services to enhance the capacity of the Hispanic
small business community in Cumberland County,
establishing paths for job growth, tax revenue to
municipalities, and revitalization of communities.
In addition to our corporate financial support of the
organizations mentioned and many others, SJI offers
a working environment that encourages employees
to be active, contributing members of their communities. For many of our employees, community service is a way of life as they enthusiastically dedicate
their time to serving others. Many of our employees
serve on non-profit boards, committees, and leadership panels.
employees pledged more than $98,000. Additionally,
through June 2015, SJI provided corporate contributions totaling more than $100,000 to the agency.
Two funding programs under the SJI umbrella celebrating continued success are SJG’s Game On Grants
and SJES’ Energy for the Arts. Game On Grants
awards 20, $1,000 grants designed to provide critical
support needed to sustain local, community-centered athletic programs, leagues, clubs, associations,
and recreational organizations for children. Energy
for the Arts awards 20, $1,000 grants designed to
provide critical support for competitive arts programs for school-aged children in our community. In
2014, SJES expanded the Energy for the Arts program
to include schools in Pennsylvania, where the company has many customers under the arm Open Flow
Energy.
We recognize that part of SJI’s success is what we
give back. The relationships developed through our
charitable giving programs are critical to helping
build revenue opportunities that sustain our business. Maintaining these relationships and working
to identify new opportunities is a job we continue to
take very seriously.
Thank You to Our Employees
It is with the support of our valued employees that
SJI continues its advancement of sustainability
initiatives as we grow. We thank each of our valued
employees for their commitment to embodying
personal values consistent with those of our organization – to be a respected and trusted resource for
those we serve.
In recent years, SJI has focused its efforts to provide
increased support to organizations advocating diver-
36
Forward-Looking Statement
This report may contain forward-looking statements. All statements other than statements of historical fact included in this report should be considered
forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. When used in this report words such as “anticipate”, “believe”, “expect”, “estimate”, “forecast”, “goal”, “intend”,
“objective”, “plan”, “project”, “seek”, “strategy” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements
are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These risks
and uncertainties include, but are not limited to, the following: general economic conditions on an international, national, state and local level; weather
conditions in our marketing areas; changes in commodity costs; the timing of new projects coming online; changes in the availability of natural gas; “nonroutine” or “extraordinary” disruptions in our distribution system; regulatory, legislative and court decisions; competition; the availability and cost of capital;
costs and effects of legal proceedings and environmental liabilities; the failure of customers, suppliers or business partners to fulfill their contractual
obligations; and changes in business strategies. SJI assumes no duty to update these statements should actual events differ from expectations.
South Jersey Industries
1 South Jersey Plaza
Folsom, NJ 08037-9917
www.sjindustries.com
609-561-9000