South Jersey Industries Inc.‘s gas unit, South Jersey Gas, has petitioned the New Jersey Board of Public Utilities to increase its base rates to cover infrastructure improvements and higher health care and pension benefits. The utility has requested a $42.7 million, or 8.7%, increase in operating revenue, which would increase base rates by $52.7 million. The request also includes a proposed credit to reduce a gas supply service clause by $7.8 million. Under the proposed hike, a typical residential bill would be $23.15 in the winter, however, South Jersey said customer bills are expected to decrease over the next year after the completion of customer payments to cover historical gas costs. The net effect of the price hike will typically increase customers’ monthly bills by $12.34, or 4.5%, the company said. Rate hike requests generally take about one year to be processed, and the higher prices would most likely not take effect until late in 2004. If natural gas prices go down over the year, South Jersey said it will decrease a portion of its request.

Calgary-based Zapata Energy reported record results for the second quarter of 2003. The junior independent, whose focus is in Alberta, saw earnings grow on higher production and commodity prices. Production sales in the second quarter averaged 1,999 boe/d, which was 141% percent higher than in Q202. The average sales price received was up 51% to C$36.85/boe from C$24.37/boe a year ago. Cash flow from operations in the quarter rose 185% to C$2.7 million (C$0.33 per share), compared to C$955,219 (C$0.12 per share) in 2002. Similarly, net income jumped 180% to C$1.2 million (C$0.15 per share) compared to C$420,704 (C$0.06 per share) in 2002. Six-month cash flow, said the company, has now eclipsed Zapata’s 2002 annual cash flow of C$4 million by C$1.8 million or 44%. Net income for the six-month period increased to C$2.7 million compared to C$473,662 in the previous year.

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