New Jersey Natural Gas
NJNG TO DECREASE PRICES; PROVIDE CUSTOMER REFUND
06/01/2006 - For Immediate Release“Though we remain subject to the pressures of the marketplace, with its very tight supply and growing demand, we are doing all we can to offer customers stable prices in an environment that remains volatile,” said Laurence M. Downes, chairman and CEO of NJNG. “With BPU approval, we can immediately lower prices for our customers as we continue to pursue our commitment to provide them with safe and affordably priced service.”
NJNG filed for a reduction in the Basic Gas Supply Service (BGSS) charge, representing a decrease of 6.6 percent, effective September 1, 2006. This charge is the portion of customers’ bills that goes towards purchasing natural gas and any changes do not impact the company’s profits. The reduction will save an average customer, using 100 therms of natural gas per month, approximately $11 on their bill.
In addition, NJNG will provide refunds to residential and small commercial customers in their September natural gas bills totaling at least $20 million. This action was made possible by the warmer temperatures experienced this past winter, which lowered customer requirements and avoided the need to purchase more expensive incremental natural gas supplies. The refund will be based on individual customer usage from February 1 through July 14 and is currently estimated to be approximately $49 for the average customer. The company will confirm the exact amount of the refund in August.
Prior to this filing, NJNG had already taken steps to offset the higher prices experienced this winter. In January, the company announced it would implement a bill credit to help provide relief to customers during February and March when bills typically are high. In March, the company announced the extension of that credit through April. For a typical NJNG customer, the savings amounted to approximately $80 over the months of February, March and April.
Part of the company’s strategy for providing price stability for customers includes securing the price for a large portion of the natural gas supply needed for the winter during summer months, when prices are typically lower. Currently, NJNG has hedged 60 percent of the natural gas for the upcoming winter.
Since reaching record levels last fall, the wholesale price of natural gas has been slowly receding. However, the market still remains volatile and the threat of hurricanes poses potential risk to supply, as seen by the damage caused by Hurricanes Katrina and Rita. As always, NJNG will monitor the market on a daily basis and continue to look for ways to provide gas cost savings for customers.
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 468,000 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
Dennis Puma, Investors
732-938-1229
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