BPU Approves NJNG Filing to Fully Open Its Markets to Competition and Sets Customer Price to Compare .

Business Editors

WALL, N.J.--(BUSINESS WIRE)--Jan. 11, 2000

Yesterday, the New Jersey Board of Public Utilities (BPU) approved New Jersey Natural Gas Company's (NJNG) filing to fully open its market to competition, which included approving NJNG's "price to compare" for residential customers who decide to shop for another supplier.

"We are a leader in supporting a competitive marketplace, and are pleased that our filing was approved by the BPU yesterday. The agreement represents a collaborative effort among all the parties that substantially moves forward the process of giving customers more choices," Laurence M. Downes, chairman and CEO said. "We strongly believe that opening the state's energy markets to competition will lead to the introduction of new products and services that will benefit all customers."

In 1994, NJNG was the first company to open its commercial markets to competition, and in 1997 was the first to offer residential customers the option to choose their supplier through a pilot program. The residential pilot program was the largest in the state with over 30,000 residential customers choosing another supplier, representing almost 10 percent of the Company's residential customer base.

The "price to compare" for NJNG's residential customers is $.40 (cents) per therm for basic gas service, the gas supply portion of their bill now open to competition. Customers who choose another gas supplier will still pay NJNG a delivery charge to transport their gas to their home. Previously, these two services were bundled together.

Yesterday's approval also extends incentives for NJNG's off-system sales and capacity management programs through Dec. 31, 2002. During low usage periods in its franchise area, NJNG sells natural gas and releases pipeline capacity to other gas suppliers both inside and outside of New Jersey. Revenues from these programs are shared between customers and shareowners. Since these programs began, NJNG has credited over $115 million from these sales to help keep customer prices stable.

Additionally, NJNG received approval to recover carrying costs on its expenditures associated with remediating the Company's former manufactured gas plant sites. These expenditures are recovered over a seven-year period and are subject to BPU review and approval.

New Jersey Natural Gas Company (NJNG) is the principal subsidiary of New Jersey Resources Corporation (NYSE: NJR). Since 1951, natural gas customers in central and northern New Jersey have relied on NJNG to keep them warm, repair their appliances and ensure they have the energy they need to run their homes and businesses. NJNG serves 400,000 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. NJNG adds nearly 12,000 new customers annually. More information about NJNG can be accessed through its Web site at www.njnaturalgas.com.