New Jersey Natural Gas Announces Greater BGSS Savings and Refund for Residential and Small Commercial Customers

New Jersey Natural Gas (NJNG) today received approval from the Board of Public Utilities (BPU) for its Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) rates and announced greater savings for customers. With wholesale natural gas prices continuing to decline, NJNG was able to further lower its BGSS price since its original June filing, resulting in an overall decrease of 19 percent for the average residential heating customer, up from 17.6 percent. The new rates will go into effect immediately. In a separate filing, NJNG also notified the BPU of its intent to provide a $35 million refund to residential and small customers. The combined effect of the annual decrease and the refund will be a reduction of approximately 23.4 percent or $405 for the typical customer using 1,000 therms annually.

“We never stop working for our customers,” said Kathleen T. Ellis, COO and executive vice president of NJNG. “With the recent decline in wholesale natural gas prices, we are pleased to pass those savings on to our customers at a time when they need it most. We will continue to monitor the markets and do everything we can to help them manage their natural gas costs.”

As a result of the price decrease, the typical customer using 100 therms a month would see their bill go from $171.32 to $138.77, a savings of $32.55. A customer using 1,000 therms annually would see a savings of $325.50. With this reduction, natural gas prices for NJNG customers will be 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 for the company.

The $35 million refund will appear on customers’ October bills. Residential and small commercial customers using less than 5,000 therms annually will receive the refund. The average refund for the typical residential heating customer is expected to be approximately $80 or 5.6 percent of their annual bill. NJNG is able to provide these one-time savings due to the lower prices for natural gas on the wholesale market.

New Jersey Natural Gas (NJNG) is the principal subsidiary of New Jersey Resources (NYSE: NJR), a Fortune 1000 company. NJNG serves more than 487,000 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.njliving.com.

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