News Center

WALL, N.J. – New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), received approval today from the New Jersey Board of Public Utilities (BPU) for adjustments in the company’s Basic Gas Supply Service (BGSS) prices and societal benefits charge (SBC). About two-thirds of the increase is necessary because of higher wholesale natural gas prices, and the balance supports initiatives and social programs approved by the BPU.

“Wholesale natural gas prices have been volatile nationwide. It’s a challenge we continue to face in our efforts to bring our customers the best possible prices,” said Laurence M. Downes, chairman and CEO of NJNG. “Through the expertise of our team, we’re committed to doing all we can to reduce the impacts on customers by maintaining a balanced portfolio of natural gas supply contracts to help offset price swings and higher prices,” Mr. Downes said.

On the New York Mercantile Exchange (NYMEX), wholesale natural gas prices have increased at times by as much as 28 percent since NJNG’s last price adjustment became effective February 1, 2004. In June 2004, NJNG filed a request with the BPU for an increase in BGSS prices following a routine review of natural gas costs. As a regulated utility, NJNG does not add any profit margin to the wholesale price of natural gas.

“Upwardly spiraling prices are a serious consequence of the current tight balance between natural gas supply and demand, pointing to the need for a strong national energy policy,” Mr. Downes said. “American’s economic prosperity, the quality of our environment and national security depend on the availability of reliable, affordable, clean energy. We must take steps to alleviate the situation. Customers are counting on us,” Mr. Downes added. As the newly elected chairman of the American Gas Association (AGA), Mr. Downes is set to lead the industry as AGA chairman beginning January 2005.

According to the BPU’s decision today, the price for a residential heating customer will increase 7.5 percent, from $1.0816 to $1.1682 per therm, effective upon receipt of the BPU’s written order.

·For an average customer using 1,100 therms per year, the increase will add about $7.94 to a monthly bill, amounting to $95.26 annually.

·NJNG, along with all of the state’s natural gas utilities, has the option of requesting two additional 5 percent BGSS increases, effective in December 2004 and February 2005, by showing need, and can request decreases at any time.

The increase in NJNG’s SBC charge supports the New Jersey Clean Energy Program and environmental initiatives conducted by NJNG in accordance with the requirements of the New Jersey Department of Environmental Protection. The portion of the SBC increase that supports the statewide New Jersey Clean Energy Program encourages energy conservation through funding and education, including rebates on high-efficiency appliances and weatherization assistance for income-eligible customers.

The balance of the SBC increase will cover costs incurred through June 30, 2002, for NJNG’s improvements to three former manufactured gas plant (MGP) properties. NJNG and all of the state’s utilities recover costs incurred for improvements to MGP properties through the SBC. There are approximately 90 former MGP properties in New Jersey, and NJNG has responsibility for three. MGP operations at these plants ceased shortly after NJNG acquired them.

“Caring for the environment is an important part of our commitment to our communities. We’re proud to partner with our state to support programs that help preserve natural resources and protect our environment, to benefit our quality of life in New Jersey,” Mr. Downes said.

Helping Customers

Natural gas costs make up the majority of customers’ bills – with amounts for service delivery and other charges, such as the SBC and operating and administrative costs – accounting for the rest. NJNG has not increased traditional base rates for operating and administrative costs in over 10 years. During this time:

·NJNG has invested over half a billion dollars in new capital to meet the needs of system reliability and a growing customer base.

·NJNG has added 131,507 new customers and 12,112 existing customers converting non-gas equipment from other fuels, by focusing on operating efficiently and ensuring the cost of adding customers is supported by the expected new margin they will generate.

Despite increases in wholesale prices, NJNG is able to moderate the impact of price volatility on customers through effective natural gas purchasing strategies and expertise on the wholesale market. NJNG further helps to reduce the impacts of higher prices on customers through innovative programs developed with the BPU and the Office of the Ratepayer Advocate.

·NJNG sells natural gas and contracts for pipeline space in other markets when not required to serve the company’s core market.

·Margins from these sales offset a portion of customers’ costs and serve to reduce exposure to higher market prices.

·Since their inception in 1992, these programs have saved NJNG’s customers over $230 million, or approximately 4 percent on their bills each year.

NJNG also assists customers with managing natural gas costs through the budget plan, energy assistance programs and conservation information.

·Customers who opt to use NJNG’s budget payment plan can spread their annual gas costs over 12 equal payments.

·For customers facing financial hardship, there are several programs, including NJNG’s Gift of Warmth fund, which provide heating assistance for income-eligible households as well as those experiencing temporary difficulties, such as unemployment or illness.

·NJNG also offers ways to help make homes more energy-efficient, including low- and no-cost tips. More information is available by calling 1-800-221-0051 or visiting the NJNG Web site at njliving.com.

New Jersey Natural Gas (NJNG) is the principal subsidiary of New Jersey Resources (NYSE: NJR), a Fortune 1000 company and a member of the Forbes Platinum 400. NJNG is one of the fastest-growing local distribution companies in the United States, serving more than 450,000 customers in New Jersey’s Monmouth, Ocean, Middlesex and Morris counties. This service area’s demographics and quality of life contribute greatly to NJNG’s growth. NJNG’s progress is a tribute to the dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make the company a leader in the competitive energy marketplace. For more information, visit NJNG’s Web site at njliving.com.