BPU Approves Extension of NJNG's Margin-Sharing Incentive Programs.

Business Editors/Energy Editors

WALL, N.J.--(BUSINESS WIRE)--Oct. 31, 2002

Margins from wholesale activities will continue to benefit

customers and shareowners

New Jersey Natural Gas Company (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), received approval yesterday from the New Jersey Board of Public Utilities (BPU) for an extension of existing margin-sharing arrangements for the Company's off-system and capacity release programs. The current formulas for sharing margins from these programs with customers and shareowners, originally approved through December 2002, have been extended through October 31, 2003.

NJNG customers save approximately 5 percent on their bills through the Company's sale of excess supply and capacity to customers in other states when not needed in the NJNG service area. Through incentive plans developed in partnership with the BPU and the Ratepayer Advocate (RPA), NJNG customers receive 85 percent of the margins from these sales and shareowners receive the remaining 15 percent.

"Our expertise in the wholesale energy market is a key to meeting our commitment to providing customers with safe, reliable and affordable service," said Laurence M. Downes, chairman and CEO of NJNG. "We are pleased that the BPU has extended these programs, which have contributed to NJNG's ability to offer our customers the lowest total prices among the state's natural gas utilities."

In fiscal 2002, customers benefited by more than $23 million from NJNG's off-system sales and capacity management programs. Since 1992, when deregulation of the natural gas market first provided NJNG with the opportunity to enter the wholesale energy services business in a significant way, the Company has achieved over $186 million in savings for customers and total earnings per share of $1.11 through these programs.

As part of the agreement approved yesterday, NJNG's portfolio-enhancement programs will continue to receive 60/40 margin-sharing treatment for transactions completed through December 31, 2002. Since initiated in 1998, NJNG's portfolio-enhancement programs have resulted in about a 22 percent reduction in the Company's pipeline capacity costs.

The BPU also approved NJNG's request to reduce customers' bills by approximately $2 per year. NJNG is able to reduce the per-therm charge for customer education and technology related to deregulation and is passing the savings to customers. The reduction will take effect following issue of the BPU's final order.

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. 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 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 for the past eight consecutive years, representing 2 billion cubic feet of new firm throughput annually. 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.