New Jersey Natural Gas Announces 17.6 Percent Decrease in Annual BGSS and CIP Filing

WALL, N.J.--(Business Wire)--
New Jersey Natural Gas (NJNG) submitted its annual Basic Gas Supply Service
(BGSS) and Conservation Incentive Program (CIP) filing to the New Jersey Board
of Public Utilities (BPU) today and announced a combined decrease of 17.6
percent for the typical residential heating customer. The decrease is a result
of lower wholesale natural gas prices in the marketplace and the company`s
strategic storage management, hedging and cost control activities. The change is
proposed to be effective October 1, 2009 and is subject to BPU approval.

"As a result of the recent decline in wholesale natural gas costs, New Jersey
Natural Gas is pleased to pass those savings on to our customers," said Kathleen
T. Ellis, COO and executive vice president at NJNG. "With the heavy toll the
economic downturn has taken on people throughout our service territory, these
savings will provide some welcome relief. We will continue to watch the natural
gas markets and do everything we can to help our customers manage their natural
gas costs. We will also continue our outreach efforts to let customers know
about programs available to help them lower their costs including NJNG`s
Conserve to Preserve programs, rebates from New Jersey`s Clean Energy Program
and federal tax credits."

A typical customer using 100 therms a month would see their bill go from $170.05
to $140.17, a savings of $29.88. A customer using 1000 therms annually would see
a savings of nearly $300. This proposed decrease is in addition to the bill
credits provided from January through March of this year, resulting in customer
savings of approximately $110. The proposed decrease would result in natural gas
bills that are at their lowest since the fall of 2005.

The majority of customers` natural gas bills consist of two separate charges.
The first, known as the base rate charge, is the cost of delivering natural gas
service to homes and businesses. The second, the BGSS, is a commodity charge
passed through to customers based on NJNG`s cost to acquire natural gas. This
portion accounts for approximately 65 percent of a customer`s bill. Any change
in the BGSS does not represent a change to profits to the company.

As always, the best way for customers to manage their energy costs is by
conserving energy and using it efficiently. The CIP enables NJNG to more
actively encourage customer conservation and energy-efficiency improvements
while stabilizing margins that might be impacted by changes in usage patterns.
In the 7-month period ended April 30, 2009, customers realized commodity cost
savings of approximately $8 million due to their reduced natural gas usage. In
addition, customers will continue to receive annual savings of $12.6 million in
fixed-cost reductions as a result of lower demand fee charges.

New Jersey Natural Gas (NJNG) is the principal subsidiary of New Jersey
Resources (NYSE: NJR), a Fortune 1000 company. NJNG serves more than 486,000
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 www.njng.com.

New Jersey Natural Gas
Media:
Michael Kinney, 732-938-1031
mkinney@njresources.com
or
Investor:
Dennis Puma, 732-938-1229
dpuma@njresources.com

Copyright Business Wire 2009