New Jersey Natural Gas to Provide Customers with a $71.2 Million Bill Credit

New Jersey Natural Gas (NJNG) today notified the New Jersey Board of Public Utilities (BPU) that it will implement a bill credit totaling $71.2 million for residential and small commercial sales customers. The credit will be in effect for natural gas usage between December 1, 2011 and January 31, 2012, and is expected to save the average customer approximately 37 percent over the two-month period.

“As natural gas prices continue to decline, we are pleased to pass the savings on to our customers,” said Laurence M. Downes, chairman and CEO of NJNG. “As the weather outside turns colder and the heat inside gets turned up, this bill credit will provide some welcomed relief to our customers at a time when heating costs are typically at their highest.”

The bill credit will save customers approximately 44 cents per therm and will be based on each customer’s usage during the time it is in effect. A typical residential customer will receive credits in their December and January bills totaling approximately $160, or 37 percent. At current prices, the average customer using 363 therms over the two months would see their bills decrease from $433 to $273. As it is unknown what market prices will do for the remainder of the winter, the bill credit is the quickest and most effective way for NJNG to provide the savings to its customers.

NJNG is able to offer a bill credit to customers at this time as a result of improvements in its meter reading and revenue processes as well as recent lower wholesale natural gas prices. The bill credit is in addition to the reduction of 9.3 percent to customer bills in October, mostly related to its Basic Gas Supply Service (BGSS) rates. The BGSS is primarily a commodity charge that is passed through to customers based on the company’s cost to acquire natural gas. This portion accounts for approximately 57 percent of a customer’s bill. Since it represents solely the cost of the commodity, any change in the BGSS does not represent a change in profits to the company.

New Jersey Natural Gas is the principal subsidiary of New Jersey Resources, a Fortune 1000 company, that provides safe and reliable natural gas and renewable energy services, including transportation, distribution and asset management in states from the Gulf Coast to the New England regions, including the Mid-Continent region, the West Coast and Canada, while investing in and maintaining an extensive infrastructure to support future growth. With over $2.5 billion in annual revenues, NJR safely and reliably operates and maintains 6,800 miles of natural gas transportation and distribution infrastructure to serve nearly half a million customers; develops and manages a diverse portfolio of 1.54 Bcf/day of firm transportation and over 59 Bcf of firm storage capacity; offers low carbon solutions of clean energy through its commercial and residential solar programs and provides appliance installation, repair and contract service to nearly 150,000 homes and businesses. Additionally, NJR holds investments in midstream assets through equity partnerships including Steckman Ridge and Iroquois. Through Conserve to Preserve®, NJR is helping customers save energy and money by promoting conservation and encouraging efficiency. For more information about NJR, visit www.njliving.com.

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