SJG Receives BPU Approval for Major Infrastructure Investment Plan

Business Wire, April 16, 2009

FOLSOM, N.J. -- The New Jersey Board of Public Utilities today approved a proposal by South Jersey Gas, a subsidiary of South Jersey Industries (NYSE:SJI), to create jobs in support of Gov. Corzine’s Economic Stimulus Plan, while also improving the utility’s infrastructure to enhance the delivery of safe and reliable service to its customers.

The initiative involves extensive infrastructure improvement projects over the next two years totaling $100 million that are incremental to SJG’s normal capital programs scheduled for 2009 and 2010. These expenditures, which were otherwise planned to occur over the next five years, will be compressed into the next two years to complete construction projects important to SJG’s gas delivery systems and simultaneously generate more jobs. The infrastructure program allows SJG to earn a return of and a return on these specific infrastructure investments as the funds are spent.

SJG also agreed to file a full base rate case with the NJBPU during 2010 as part of the infrastructure program. By that time, the company expects to have invested over $380 million in infrastructure since the completion of its last base rate case in 2004.

“This program is the result of ongoing cooperation between SJG, the NJBPU and the Division of Rate Counsel,” said Edward Graham, chairman, president and CEO of SJI. “Without our combined efforts, a program of this magnitude could not have been developed, proposed or approved. Throughout this process, we have endeavored to identify viable solutions to the challenges facing our State. I am pleased that through our initiative, we will be able to expand the job market while at the same time enhancing the operation of our gas distribution system.”

“These projects were carefully reviewed against strict criteria,” explained Jeanne M. Fox, president of the NJBPU. “By expediting spending on identified infrastructure needs, these projects can provide important support for our economy now, as requested by Governor Corzine, while ensuring a reliable and secure energy supply for future economic growth. In addition, by putting many of these projects out to bid in a slow economy, this work can be completed at a lower cost to ratepayers.”

The program is expected to result in an increase of approximately one half of one percent to the average customer’s monthly bill. For a customer using 100 therms of gas in a month, that increase translates into $.94 per bill.

Forward-Looking Statement

This news release contains forward-looking statements. All statements other than statements of historical fact included in this press release 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 press release 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; “non-routine” 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.

About South Jersey Industries

South Jersey Industries (NYSE:SJI) is an energy services holding company for utility and non-regulated businesses. A member of the KLD Global Climate 100 Index, SJI offers solutions to global warming through renewable energy, clean technology and efficiency. South Jersey Gas, one of the fastest growing natural gas utilities in the nation, strongly advocates the efficient use of energy while safely and reliably delivering natural gas in southern New Jersey. South Jersey Energy Solutions, the parent of SJI’s non-regulated businesses, provides innovative, environmentally friendly energy solutions that help customers control energy costs. South Jersey Energy acquires and markets natural gas and electricity for retail customers and offers energy-related services.