New Jersey Natural Gas Seeks Approval to Adjust Natural Gas Prices; Adjustment Requested Because of Higher Wholesale Natural Gas Prices

Business Wire, June 1, 2005

WALL, N.J. -- New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), today filed with the New Jersey Board of Public Utilities (BPU) for an adjustment in the price of Basic Gas Supply Service (BGSS). Following an annual review of natural gas costs required for all the state's natural gas utilities, NJNG is requesting to increase prices by 4.2 percent.

The increase reflects higher wholesale natural gas prices, which have risen by 12 percent since NJNG's last BGSS filing 12 months ago. As a regulated utility, NJNG does not realize any profit from the sale of natural gas and simply passes the cost of natural gas from the supplier through to customers.

"We're committed to doing everything we can to provide our customers with safe, reliable and affordable service, including making every effort to moderate the impact of continuing price volatility in the wholesale natural gas market," said Laurence M. Downes, chairman and CEO of NJNG. "By successfully managing our storage contracts and effectively minimizing price risk, we have saved our customers about $36 million in natural gas costs during the last heating season alone."

NJNG further helps limit the effects of price volatility through innovative programs developed with the BPU and the Division of the Ratepayer Advocate. Since their inception in 1992, these programs have saved NJNG's customers nearly $256 million, or approximately 4 percent on their bills each year.

"The current tight balance of natural gas supply and demand and resulting price volatility on the wholesale market require our continued focus on bringing our customers the best possible prices. Our team's expertise in the wholesale market helps us maintain a balanced portfolio of price commitments to prepare us for whatever direction the market may take," Mr. Downes said.

NJNG also assists customers with managing natural gas costs through a budget plan, energy assistance programs and conservation information.

--Customers who opt to use NJNG's budget payment plan can spread their estimated annual natural gas costs over 12 equal payments at no additional charge.

--For customers facing financial hardship, there are several programs, including NJNG's Gift of Warmth fund, which provide heating assistance for income-eligible households as well as those experiencing temporary difficulties, such as unemployment or illness.

--NJNG also offers ways to help make homes more energy-efficient, including low- and no-cost tips. More information is available by calling 1-800-221-0051 or visiting the NJNG Web site at njliving.com. Links may be found at njliving.com to additional online resources, such as www.njcleanenergy.com, for information on New Jersey's Clean Energy Program through the BPU, and www.rpa.state.nj.us, the Division of the Ratepayer Advocate's Web site.

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 459,000 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.