New Jersey Resources' CEO Testifies Before U.S. Senate On Benefits of Distributed Generation.

Business Editors

WASHINGTON--(BUSINESS WIRE)--May 25, 2000

Laurence M. Downes, chairman and CEO of New Jersey Resources Corp. and chairman of the Distributed Power Coalition of America, testified this morning at a U.S. Senate hearing addressing the impact of distributed generation on natural gas demand.

"Few innovations offer as much promise for American consumers as distributed generation," said Mr. Downes. "The benefits of employing small, dispersed generation units throughout the electric grid include more choices for consumers, increased reliability, improved power quality, additional capacity to support the nation's power grid, and fewer harmful air emissions. In my opinion, distributed generation has the potential to change the electric industry in much the same way as PCs changed the computer business."

Distributed generation technologies provide consumers with an alternative to traditional electric power. The equipment can be installed at a customer's home or business and electricity is produced "on-site." And because many of the distributed generation technologies use natural gas to fuel the power generation process, natural gas distribution companies have the opportunity to expand their natural gas sales.

New Jersey Resources Corp. (NYSE: NJR), through its subsidiary, NJR Power Services Corp., is a leader in promoting distributed generation technologies, including fuel cells and microturbines. NJR Power Services Corp. was established to provide distributed generation products and services to residential and business customers in New Jersey. The Company is the exclusive New Jersey energy distributor for GE MicroGen's line of residential and small commercial fuel cells, which are manufactured by Plug Power, Inc. The Company also has an equity interest in Capstone Turbine Corporation, a leading developer of low-emission, compact power generating systems. NJR also provides retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England. Its principal subsidiary, New Jersey Natural Gas Company (NJNG), provides energy services to more than 400,000 customers in central and northern New Jersey. More information can be found at www.njresources.com.

The Distributed Power Coalition of America is a national group comprised of over 50 organizations dedicated to the development of a vibrant market for distributed generation and has been actively involved in both federal and state initiatives that address distributed generation technology.