New Jersey Natural Gas Company Announces Smart Growth Pilot Program in Asbury Park

Business Wire, Feb 6, 2003

Business Editors/Energy Writers

ASBURY PARK, N.J.--(BUSINESS WIRE)--Feb. 6, 2003

New Jersey Natural Gas Company (NJNG), the principal subsidiary of New Jersey Resources Corporation (NYSE: NJR), has filed with the New Jersey Board of Public Utilities (BPU) to initiate a Smart Growth pilot program that will provide the groundwork for major redevelopment activities in Asbury Park.

The proposed program will upgrade a significant portion of the natural gas distribution system in Asbury Park with state-of-the-art infrastructure to enhance the system's capacity and support current and future redevelopment opportunities.

"Through the Smart Growth initiative, Governor James E. McGreevey is committed to successfully planning for future growth in our state by realizing the potential of Asbury Park and other communities targeted for redevelopment," said Laurence M. Downes, chairman and CEO of NJNG. "We look forward to bringing the benefits of upgraded infrastructure to Asbury Park to help support the town's continued growth and revitalization."

As a priority area for Smart Growth investment, Asbury Park is the first community in NJNG's service area selected for the pilot program. Asbury Park has recently approved a waterfront redevelopment plan, and the New Jersey Department of Community Affairs has established a local office to facilitate the processing of permits and accelerate redevelopment efforts.

"I commend NJNG on their vision for New Jersey," said Jeanne M. Fox, president of the BPU. "The Governor's Smart Growth agenda is important to the future of New Jersey. It is vital that utilities like NJNG and state, county and local officials, community and environmental leaders and builders work together in developing priority growth areas like Asbury Park," Ms. Fox said.

NJNG has a longstanding record of service to Asbury Park through various community initiatives and programs that support the educational system and local economy. Working with Interfaith Neighbors and the City of Asbury Park, NJNG renovates unused properties for first-time homeowners who would otherwise be unable to afford a house. The Asbury Park Public Library was the first library in the Company's service area to receive technology upgrades through NJNG's Libraries On-Line program, and students at the Asbury Park Middle School receive professional advice and skills to prepare them for the future through the Company's Project Venture mentoring program. NJNG's Economic Development program has offered a discounted price on natural gas to new and expanding local businesses since 1993.

"We are proud of our Company's contribution to Asbury Park's past and present, and we are enthusiastic about the opportunity to play an even greater role in Asbury Park's future through our Smart Growth pilot program," Mr. Downes said.

As proposed, the Smart Growth pilot program would provide the opportunity for NJNG to enhance and expand utility infrastructure in Asbury Park with minimal financial impact on customers. The plan proposes recovering costs through limited changes to the traditional regulatory treatment of utility infrastructure costs, amounting to less than $1 per customer on an annual basis.

"Our team's creativity and focus on our Commitment to Stakeholders has enabled us to propose an innovative strategy that supports state policy, while providing additional ways to serve our customers' needs. We thank the BPU for the opportunity to put forth this proposal," Mr. Downes said.

NJNG is hopeful that action will be taken soon by the BPU. With approval of the program, NJNG would immediately complete final design plans and obtain needed permits to begin construction in the spring. The initiation of the pilot program in Asbury Park is expected to provide a model for future applications in other communities in the Company's service area.

New Jersey Natural Gas Company (NJNG), one of the fastest-growing local distribution companies in the United States, is the principal subsidiary of New Jersey Resources Corporation (NYSE: NJR), a Fortune 1000 company and a member of the Forbes Platinum 400. NJNG has been ranked highest in customer satisfaction for the Eastern U.S. Region in the J.D. Power and Associates 2002 Gas Utility Residential Customer Satisfaction Study(SM). NJNG is also the low-cost provider among the state's natural gas distribution companies. Since 1952, natural gas customers in central and northern New Jersey have relied on NJNG to keep them warm and ensure they have the energy they need to run their homes and businesses. NJNG provides energy services to more than 430,000 residential, commercial and industrial customers in New Jersey's Monmouth and Ocean counties and parts of Morris and Middlesex counties and maintains a nearly 6,000-mile underground pipeline system. The Company has added nearly 12,000 new customers annually for the past eight consecutive years, representing 2 billion cubic feet of new firm throughput each year. NJNG is also a leader in the off-system sales and capacity release markets. More information about NJNG can be found at their Web site at www.njliving.com.