New Jersey Natural Gas Partners with Ocean County College on Fuel Cell Project

Business Wire, April 22, 2004

Energy Editors/Business Editors

TOMS RIVER, N.J.--(BUSINESS WIRE)--April 22, 2004

New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), today helped dedicate a natural gas fuel cell at Ocean County College (OCC) in Toms River. The 250-kilowatt fuel cell system, manufactured by FuelCell Energy, Inc. and installed by PPL Energy Services, uses natural gas provided by NJNG to generate electricity for several of the buildings on the OCC main campus.

"We are pleased to support OCC's use of this innovative technology as part of their strategic initiative to enhance the college's physical resources," said Laurence M. Downes, chairman and CEO of NJNG. "A natural gas fuel cell offers high standards for environmentally friendly and energy-efficient operations and can benefit students and the campus community with increased reliability and power quality," Mr. Downes said.

Fuel cells produce electricity through a chemical process instead of combustion. Since the fuel is not burned, pollution commonly associated with traditional electric generation is decreased dramatically.

OCC is the first higher education institution in NJNG's service area to install a fuel cell. The college estimates saving approximately $60,000 in annual energy costs by generating electricity on-site and recovering waste heat from the fuel cell. The system will serve about 90 percent of the power needs to OCC's instructional building, lecture hall and nursing arts building. It also will provide 20 percent of the heating needs for the three buildings and the administration building, gymnasium, library and Robert J. Novins planetarium.

Through funding available from the New Jersey Clean Energy Program, the New Jersey Board of Public Utilities (BPU) provided $827,000 to offset a portion of the initial capital cost of the project. The New Jersey Clean Energy Program is a statewide initiative that provides education, information and financial incentives for renewable energy systems and energy-efficiency measures.

"Efforts that preserve our natural resources and our environment reflect Governor McGreevey's vision for a cleaner and healthier New Jersey," BPU President Jeanne M. Fox said. "OCC is a model for others to follow in their commitment to energy efficiency and the air we breathe," President Fox said.

Through a special pricing plan offered by NJNG and approved by the BPU in January 2003, OCC will pay a lower price for the delivery of natural gas used by the fuel cell. NJNG's plan is available for customers using natural gas to fuel distributed generation (DG), broadly defined as small-scale power generation technologies located on or close to the facility being served.

"NJNG supports customers in their ability to make informed decisions about the merits of DG and renewable energy technologies. Working to develop innovative ways to support the state's plans for protecting the environment is the responsibility of all of New Jersey's utilities," Mr. Downes said.

As DG and renewable technologies gain greater acceptance, the potential benefits can increase in both electric and natural gas service for customers. Broader use of these technologies can offer support for electric utilities by working in conjunction with traditional grid-powered electricity to improve system reliability during times of peak demand. DG technologies fueled by natural gas also have the potential to improve the overall efficiency of NJNG's distribution system because the peak use of electricity occurs during the summer, when demand for heating is lowest.

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 nearly 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 has been recognized by the American Gas Association for Best Practices in Routine Leak Repair. 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. More information about NJNG can be found on our Web site at njliving.com.