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WALL, N.J. – New Jersey Resources (NYSE: NJR) Chairman and CEO Laurence M. Downes is in the spotlight in the March 31 edition of the Star-Ledger. An article by Staff Writer Tom Johnson features Mr. Downes’ accomplishments during his first 10 years as CEO. The full text of the article is as follows:

Through ups and downs, energy chief holds steady
NJR executive’s winning streak sets a sector standard

The past decade has been a bumpy roller-coaster ride for the energy sector.

Wild swings in prices, supply shortages and a wave of consolidations have roiled the industry as executives have navigated the uncharted waters of utility deregulation and tried to find new ways to improve the bottom line through unregulated ventures.

None of that has deterred Laurence Downes, an unflappable and soft-spoken executive who for the past 10 years has led New Jersey Resources, a natural gas company with $2.5 billion in revenue last year.

Under Downes’ stewardship, the company has increased earnings 13 consecutive years, and is on target to make it 14 this year – a streak unmatched in the sector.

“We may not be as exciting as a dot-com or a biotechnology company,” the 47-year-old chief executive and chairman of the Wall Township-based company says. “We're about consistency. When you look at our returns, we’re doing pretty well.”

Downes is fond of telling audiences the company – the owner of the state's second-largest gas utility, New Jersey Natural Gas – is one of the fastest-growing local gas distribution businesses in the country. Shareholders who invested $1,000 in NJR in 1952 have seen their investment grow to more than $800,000 today, he is quick to point out.

During the past two years, the share price has gone from just over $30 a share to nearly $45. Shares closed yesterday at $43.39, up 64 cents, or 1.5 percent.

It is a track record that has not escaped his peers or industry analysts. In January, Downes, who began his career in corporate banking, was named chairman of the American Gas Association, a national trade group representing natural gas utilities.

“Without question, he’s regarded as one of the leaders of his group,” Jim Lykins, an analyst with Hilliard Lyons, said.

New Jersey Natural Gas, which has 455,000 customers in Monmouth and Ocean counties, accounts for about 80 percent of the parent company’s earnings. And yet the utility has not raised the rates it charges to deliver gas to residents and businesses for more than a decade.

That’s something state regulators have come to appreciate – especially since there have been huge increases in the wholesale cost of natural gas, which utilities are required to pass along to  their customers.

“He gets the issues,” Board of Public Utilities President Jeanne Fox said. “He gets smart growth; he gets diversity; and he gets customer service.”

“He’s progressive in the best sense of the word.”

As chairman of the American Gas Association, Downes has become an advocate for a more diversified energy strategy. With demand for natural gas growing, prices will likely remain high and volatile, with customers bearing the burden, Downes said.

“The difficulties our industry faces today cannot be solved by simply increasing supply. There is no single solution,” Downes told Congress last month. “We must also improve energy efficiency, because a unit of natural gas conserved benefits consumers at least as much as a new unit of gas produced.”

In the past, it would have been unusual for a utility executive to embrace energy efficiency, but for Downes such a stance is nothing new. New Jersey Natural Gas was the first utility in the state to set up a program that allows customers to contribute to a fund that promotes renewable energy sources such as solar and wind power.

Downes came to New Jersey Resources in 1985 after working on utility bonds at a bank, a job he came to enjoy. “I was fascinated by utilities in general,” he said. “I came to believe the utility business was a prototype for a good corporate financial strategy.”

His financial background has served Downes well at New Jersey Resources, colleagues say.

“There’s not a lot of glitz there (and) he’s steady on the fundamentals,” said Alfred Koeppe, a member of the board of directors at New Jersey Resources and a former president of Public Service Electric & Gas, the state’s largest utility. “I don't think there’s a better financial steward among utility executives in the state.”

Others said Downes genuinely cares about people, a quality that has earned him support from his employees.

“He recognizes the achievements of people,” said Rich Petro, a neighbor of Downes’ in West Windsor who bicycles with him about three times a week, averaging 75 miles. “That goes a long way when you are trying to get a company moving in the right direction.”

What lies ahead for New Jersey Resources is another question. In the past year, the parent company of Elizabethtown Gas, NUI, was acquired by Atlanta-based AGL Resources, and Public Service Enterprise Group, the parent of PSE&G, has agreed to be bought by Chicago-based Exelon to form the country's largest utility company.

Some analysts have speculated New Jersey Resources could find a partner in South Jersey Industries, another well-regarded gas utility. “I think it would make a lot of sense,” said David Schanzer, an analyst with Janney Montgomery Scott.

Downes declined to talk about the prospects of a merger or acquisition, but added, “What we have said publicly is we feel very good about prospects for growing in New Jersey.”

About New Jersey Resources
New Jersey Resources (NYSE: NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States, serving more than 450,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services is a leader in the unregulated energy services market, providing outstanding customer service and management of natural gas storage and capacity assets. NJR Home Services offers retail customers expert heating, air conditioning and appliance services. NJR’s progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community. Their efforts have made NJR a leader in the competitive energy marketplace. For more information, visit NJR’s Web site at njliving.com.