New Jersey Natural Gas
NEW JERSEY NATURAL GAS TO PROVIDE CUSTOMER BILL CREDIT
01/25/2006 - For Immediate ReleaseThe announcement was made at the 55th Annual Shareowners’ Meeting of NJNG’s parent company, New Jersey Resources, held today at the Robert B. Meyner Reception Center located at the PNC Bank Arts Center in Holmdel.
“While we understand that customers are still facing increased heating costs, by implementing this credit immediately, we are working to bring relief in the winter months, when bills are at their highest,” said Laurence M. Downes, chairman and CEO of NJNG. “We will continue to monitor the market on a daily basis and look for ways to offer savings in the future.”
The credit will save customers approximately 19 cents per therm while in effect for the months of February and March 2006. A typical residential customer using 325 therms over the 2-month period will receive a bill credit of approximately $61.
As natural gas prices were rising to record-high levels in 2005, NJNG received approval from the New Jersey Board of Public Utilities (BPU) to implement a price increase that helped cover the cost of obtaining natural gas necessary to meet the usual high demand of winter months. This adjustment was a direct result of the cost to purchase natural gas, and did not increase profits to the company. Recently, due in part to decreased usage resulting from warmer than normal weather, the wholesale cost of natural gas has slowly receded, enabling NJNG to offer a credit to customers.
The natural gas commodity market, however, remains volatile and the company will monitor the market on an ongoing basis to assess whether or not another bill credit may be applied at a later date. NJNG will also address the price in its annual filing with the New Jersey Board of Public Utilities on June 1.
NJNG has taken additional action to help minimize the impact of rising wholesale natural gas costs on its customers. Through its hedging practices, the company secures prices on natural gas supply during summer months when wholesale prices are at their lowest, providing millions of dollars in savings to customers. NJNG’s Budget Plan allows customers to spread their anticipated natural gas payments over a 12-month period at no additional cost. Also, information about low- and no-cost energy saving tips and energy assistance programs can be found online at NJNG’s Web site, 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 462,000 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.
Contact:
Michael Kinney, Media
732-938-1031
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