December 28, Please accept this letter as formal notification that New Jersey Natural Gas Company

Transcription

1 41 New Jersey ~~ Natural Gas December 28, 2018 VIA FAX AND FEDERAL EXPRESS The Honorable Aida Camacho-Welch N.J. Board of Public Utilities 44 South Clinton A venue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Re: In the Matter of the Petition of New Jersey Natural Gas Companyfor the Annual Review and Revision oflts Basic Gas Supply Service (BGSS) and Conservation Incentive Program (CIP) Rates for FN 2019 Docket No. GR Dear Secretary Camacho-Welch: Please accept this letter as formal notification that New Jersey Natural Gas Company ("NJNG") intends to implement a 5% price increase on February 1, 2019, consistent with the requirements set forth in the New Jersey Board of Public Utilities ("BPU" or "Board) Order Approving BGSS Pricing Structure, dated January 6, 2003, in BPU Docket No. GX ("January 6th Order"). This letter notification is being provided to the Board and the New Jersey Division of Rate Counsel ("Rate Counsel"), pursuant to the terms of the January 6th Order. BACKGROUND - BGSS On May 25, 2018, NJNG filed a petition seeking the annual review and revision of its Basic Gas Supply Service ("BGSS") rate for the 2019 fiscal year, which was captioned and docketed as referenced above. The Company requested to maintain its BGSS rate applicable to residential and certain small commercial sales customers ("Periodic BGSS") based on forecasted information including the May 10, 2018 New York Mercantile Exchange ("NYMEX") natural gas futures settlement prices as requested by BPU Staff Wyckoff Road P.O. Box 1464 Wall, NJ Phone:

2 - 2- On August 28, 2018, NJNG, Board Staff and Rate Counsel (the "Parties"), the only parties to this proceeding, entered into a Provisional Stipulation of Settlement ("Stipulation") which provided for the maintenance of the Company's Periodic BGSS rate of $ per therm aftertax applicable. By "Decision and Order Approving Stipulation for Provisional BGSS and CIP Rates" issued September 17, 2018 ("September 17th Order"), the Board found that the referenced Stipulation was reasonable and in the public interest and that the rates set forth in the Stipulation should be made effective October 1, 2018 on a provisional basis, subject to refund with interest, pending the Board's final decision in this matter. Since that time, the wholesale market prices for natural gas have risen. The 12 month natural gas NYMEX strip price (the average of the monthly futures prices for a 12 month period) for October 2018 through September 2019 has increased as much as 23 percent from the filing. The December 2018 through March 2019 winter months have increased as much as an average of $1.316 per dekatherm ($ per therm), or 44 percent. The underlying reasons for the surge in market prices cannot be tied to one specific event or cause. Instead, the combination of the early cold weather in October and November 2018, potential continued cold weather, and tight supply and demand balances are some of the many factors influencing the price of gas. BGSSPRICE After consideration of the increases in the wholesale market price for natural gas and the projected underrecovery status of the gas cost recovery balance, it is necessary for the Company to implement the BGSS price increase as authorized through the January 6 Order. The necessary supporting documentation is provided with this notification and demonstrates that the requested price increase, effective February 1, 2019, adjusts the current BGSS price from $ per therm to $ per therm inclusive of sales tax and results in an increase of$4.83, or 5 percent, for a typical residential heating customer using 100 therms a month.

3 - 3- SUPPORTING DOCUMENTATION Pursuant to the terms of the January 6 Order, the Company is providing the following supporting documentation within this notification: Exhibit A captures sales volumes, gas costs, miscellaneous adjustments, gas cost recoveries and the resulting deferred balances with actual data for the twelve (12) month period of October 1, 2017 through September 30, Exhibit B captures sales volumes, gas costs, miscellaneous adjustments, gas cost recoveries and the resulting deferred balances for a twelve (12) month period, using actual data for the period from October 1, 2018 through November 30, 2018 and projected data for the period from December 1, 2018 through September 30, Exhibit C illustrates the intended change to the BGSS price and the associated impact upon customers. Exhibit D contains revised tariff pages for Petitioner's Tariff for Gas Service, BPU No. 9-Gas. The costs and recoveries associated with this filing have no net impact on NJNG's base revenues or return on investment, and the proposed revisions to the BGSS price will not change NJNG's income or allowable rate of return as previously fixed by the Board.

4 - 4- Respectfully submitted, NEW JERSEY NATURAL GAS COMPANY By: Andrew K. Dembia, Esq. Regulatory Affairs Counsel C: Service List Encl.

5 NEW JERSEY NATURAL GAS COMPANY ANNUAL REVIEW AND REVISION OF ITS BASIC GAS SUPPLY SERVICE (BGSS) AND CONSERVATION INCENTIVE PROGRAM (CIP) RATES FOR F/Y 2019 DOCKET NO. GR SERVICE LIST NJNG Mark Kahrer New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Andrew Dembia, Esq. New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Anne-Marie Peracchio New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Tina Trebino New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Jayana Shah New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ NJ BOARD OF PUBLIC UTILITIES Stacy Peterson N.J. Board of Public Utilities Division of Energy 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Scott Sumliner N.J. Board of Public Utilities Division of Energy 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Megan Lupo, BPU NJ Board of Public Utilities 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Oneil Hamilton NJ Board of Public Utilities 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Bethany Rocque-Romaine NJ Board of Public Utilities 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Jacqueline Galka NJ Board of Public Utilities 44 South Clinton Avenue 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ

6 NEW JERSEY NATURAL GAS COMPANY ANNUAL REVIEW AND REVISION OF ITS BASIC GAS SUPPLY SERVICE (BGSS) AND CONSERVATION INCENTIVE PROGRAM (CIP) RATES FOR F/Y 2019 DOCKET NO. GR SERVICE LIST DIVISION OF RATE COUNSEL Stefanie A. Brand, Esq., Director Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Brian Lipman Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Felicia Thomas-Friel, Esq. Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Shelly Massey Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Maura Caroselli Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Henry Ogden Division of Rate Counsel 140 East Front Street 4 th Floor P.O. Box 003 Trenton, NJ Brian Kalcic Excel Consulting 225 S. Meramec Avenue Suite 720T St. Louis, Missouri, Robert Henkes Henkes Consulting 7 Sunset Road Old Greenwich, CT, DEPT. OF LAW & PUBLIC SAFETY DIVISON OF LAW Caroline Vachier, DAG Division of Law 124 Halsey Street P.O. Box Newark, NJ Alex Moreau, DAG Division of Law 124 Halsey Street P.O. Box Newark, NJ Renee Greenberg Dept. of Law & Public Safety Division of Law 124 Halsey Street, 5 th Floor P.O. Box Newark, NJ 07102

7 INDEX OF SCHEDULES: EXHIBIT A Twelve Months Actual through September Under/(Over) Recovered Gas Costs 2a. Gas Costs 2b. Gas Cost Recoveries 2c. Total Gas Costs 3. Therm Sales 4a. N/A 4b. Sales at Sayreville 4c. Sales at Forked River 4d. N/A 4e. Off-System Sales 4f. Capacity Release 4g. Balancing Credits and Penalty Charges 4h. N/A 4j. Storage Incentive 5. Supplier Refunds and Miscellaneous Adjustments 6. Computation of Interest

8 SCHEDULE 1 NEW JERSEY NATURAL GAS COMPANY UNDER/(OVER) RECOVERED GAS COSTS BGSS YEAR 2018 $(000) Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 TOTAL 1. Under/(Over) Recovered Gas Costs Beg. of Period 9,910 9,598 6, ,049 7,422 7,549 6,085 6,002 5,693 5,326 4,663 9, Net Cost Appl. To BGSS Sales (Sch 2a) 9,121 21,573 39,206 57,486 36,275 39,810 20,965 8,833 8,174 7,278 6,965 6, , BGSS Recoveries (Sch 2b) (5,395) (17,267) (32,843) (38,903) (25,005) (28,849) (16,734) (5,759) (5,023) (4,449) (4,033) (3,845) (188,105) 4. Under/(Over) Rec. Gas Costs - Current Period (L.2 - L.3) 3,726 4,306 6,363 18,583 11,270 10,961 4,231 3,073 3,151 2,830 2,932 2,782 74,209 Adjustments 5. Storage Incentive (Sch.4j) 1, , Off-System Sales (Sch.4e) (1,081) (941) (1,644) (337) (962) (1,098) (238) (303) (581) (606) (913) (771) (9,475) 7. Capacity Rel. (Sch.4f ) (3,069) (3,047) (3,344) (3,799) (3,369) (3,269) (1,955) (2,139) (2,338) (2,087) (2,102) (1,966) (32,484) 8. Supplier Ref. and Misc. Adj.(Sch.5) Balancing Credits and Penalty Charges (Sc (1,349) (4,084) (7,375) (8,889) (5,567) (6,563) (3,813) (1,392) (1,193) (1,033) (942) (901) (43,101) 10. Total Debits and Credits (L.5 through L.9) (4,038) (7,414) (12,364) (13,024) (9,898) (10,834) (5,695) (3,156) (3,460) (3,197) (3,595) (3,307) (79,982) 17. Under/(Over) Recov.Gas Costs. End of Period (L's.1,4,&10) 9,598 6, ,049 7,422 7,549 6,085 6,002 5,693 5,326 4,663 4,137 4,137

9 NEW JERSEY NATURAL GAS COMPANY GAS COSTS AND RECOVERIES BGSS YEAR 2018 $(000) & (000)THERMS Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 TOTAL COST OF GAS-CURRENT PERIOD SCHEDULE 2a Total Gas Costs 1 8,166 24,985 44,687 64,218 42,707 46,520 27,870 14,094 13,014 16,584 18,324 15, ,441 REDUCTIONS TO COST OF GAS Sayreville (Sch. 4b) Forked Rv. (Sch. 4c) Off System Sales (Sch.4e) 2,605 6,953 9,405 10,952 10,382 10,547 3,947 7,766 7,550 11,640 13,736 10, ,357 Capacity Release (Sch. 4f) (3,611) (3,584) (3,934) (4,469) (3,963) (3,845) (2,300) (2,517) (2,750) (2,455) (2,473) (2,313) (38,216) Storage Incentive Sales , ,246 Company Use Gas Total Reductions (955) 3,412 5,481 6,732 6,432 6,710 6,905 5,261 4,841 9,306 11,358 8,644 74,127 Net Cost Appl.To BGSS Sales 9,121 21,573 39,206 57,486 36,275 39,810 20,965 8,833 8,174 7,278 6,965 6, ,314 (Sch.1.,L.2) GAS COST RECOVERIES SCHEDULE 2b BGSS Sales 16,384 51,206 94, ,584 70,736 83,852 48,457 16,578 14,507 12,765 11,496 10, ,832 Monthly BGSS Sales (GSL, DGC) 2,354 5,705 9,530 10,904 7,220 8,424 5,427 2,508 2,090 1,987 1,959 1,651 59,760 Monthly BGSS Sales (IS, CNG, NGV) Periodic BGSS Sales 13,963 45,439 84, ,620 63,465 75,380 42,977 14,063 12,353 10,726 9,478 9, ,416 Recovery Rate $ per Therm: Periodic BGSS Rate Monthly BGSS Sales (GSL, DGC) Monthly BGSS Sales (IS, CNG, NGV) Recoveries: Periodic BGSS 4,774 15,536 28,963 34,744 21,699 25,772 14,694 4,808 4,224 3,667 3,240 3, ,280 Monthly BGSS(GSL, DGC) 599 1,709 3,848 4,133 3,280 3,056 2, ,542 Monthly BGSS (IS, CNG, NGV) Total BGSS Recovery 5,395 17,267 32,843 38,903 25,005 28,849 16,734 5,759 5,023 4,449 4,033 3, ,105 (Sch. 1, L. 3)) 1 Total Gas Costs equals the sum of Total Allocated Costs on Schedule 2c and the non-production Company Use Gas. The non-production Company Use Gas is included in Total Gas Costs and removed in the Reduction to Gas Costs on Schedule 2a for no impact to the BGSS.

10 NEW JERSEY NATURAL GAS COMPANY TOTAL GAS COSTS BGSS YEAR 2018 SCHEDULE 2c Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 MDth Beginning of Month Storage Balance 21,816 25,640 22,670 16,548 11,000 9,113 4,745 5,322 9,780 13,798 18,180 20,969 Commodity Purchases 7,755 5,400 6,715 7,884 8,134 8,137 8,994 9,229 8,475 10,139 9,171 9,618 Sub-total of Available Supplies A 29,571 31,040 29,385 24,431 19,134 17,250 13,739 14,551 18,255 23,937 27,351 30,588 Less volumes with assigned cost allocations Off System Sales, Electric Gen, Other 2,095 3,178 3,658 2,366 3,177 4,341 3,439 3,242 3,058 4,648 5,220 4,548 Monthly BGSS Sales (GSL, DGC) , Monthly BGSS Sales (IS, CNG, NGV) FEED Sales Company Use Non Prod Sales Sub-total of Assigned Cost Allocations B 2,339 3,757 4,621 3,467 3,906 5,190 3,990 3,495 3,275 4,854 5,425 4,722 Allocation WACOG Volume C = A - B 27,232 27,283 24,764 20,965 15,228 12,060 9,749 11,056 14,980 19,083 21,926 25,866 volume available for allocation $000 Beginning of Month Storage Balance 44,717 49,248 43,461 31,894 21,549 17,781 9,218 10,336 19,980 28,691 38,698 45,416 Beginning of Month WACOG Inventory 34,463 37,759 35,860 27,097 29,343 21,892 10,036 10,074 15,127 20,705 26,431 33,069 Commodity Purchases 9,198 10,215 17,813 50,110 25,100 18,950 20,125 20,012 18,855 23,478 22,851 22,366 Demand Charges 6,787 7,076 6,533 5,994 6,378 7,142 8,890 8,771 8,440 8,832 8,820 8,877 Sub-total of Available Supplies D 95, , , ,095 82,370 65,765 48,269 49,193 62,403 81,706 96, ,728 Less volumes with assigned cost allocations Off System Sales, Electric Gen, Other 2,648 6,988 9,405 11,185 10,386 10,547 9,194 7,770 7,584 11,753 13,822 10,948 Monthly BGSS Sales (GSL, DGC) 599 1,709 3,848 4,133 3,280 3,056 2, Monthly BGSS Sales (IS, CNG, NGV) GSL, DGC Sales Balancing Sub-total of Assigned cost allocations E 3,419 9,084 13,894 16,042 14,154 14,162 11,581 8,881 8,517 12,662 14,740 11,739 Allocation WACOG Costs F = D - E 91,745 95,215 89,774 99,053 68,217 51,603 36,688 40,312 53,886 69,044 82,059 97,989 $ available for allocation $/Dth WACOG G = F / C MDth Periodic BGSS Sales 1,396 4,544 8,471 10,162 6,347 7,538 4,298 1,406 1,235 1, CoUse & UFG Periodic BGSS Sales & CoUse & UFG H 1,407 4,554 8,492 10,193 6,372 7,560 4,326 1,427 1,248 1, volume to be allocated $000 Periodic BGSS ($/Therm WACOG * Periodic BGSS I = G * H 4,739 15,893 30,783 48,161 28,544 32,350 16,278 5,205 4,490 3,915 3,574 3,523 allocated cost Plus assigned cost allocations Off System Sales, Electric Gen, Other 2,648 6,988 9,405 11,185 10,386 10,547 9,194 7,770 7,584 11,753 13,822 10,948 Monthly BGSS Sales (GSL, DGC) 599 1,709 3,848 4,133 3,280 3,056 2, Monthly BGSS Sales (IS, CNG, NGV) GSL, DGC Sales Balancing FEED Sales Sub-total of Assigned cost allocations J 3,419 9,084 13,894 16,042 14,154 14,162 11,581 8,881 8,517 12,662 14,740 11,739 Total Allocated Costs (Sch 2a Total Gas Costs) K = I + J 8,158 24,977 44,677 64,202 42,698 46,511 27,859 14,086 13,007 16,577 18,314 15,261 End of Month Storage Balance L 49,248 43,461 31,894 21,549 17,781 9,218 10,336 19,980 28,691 38,698 45,416 54,846 Total Allocated Costs & Storage Balances M = K+L 57,406 68,438 76,571 85,752 60,479 55,729 38,196 34,066 41,698 55,274 63,730 70,108 Current Month WACOG Inventory Balance N = D - M 37,759 35,860 27,097 29,343 21,892 10,036 10,074 15,127 20,705 26,431 33,069 39,620

11 NEW JERSEY NATURAL GAS COMPANY THERM SALES BGSS YEAR 2018 (000)THERMS SCHEDULE 3 Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 TOTAL Residential BGSS Sales 13,328 42,968 79,767 94,934 59,352 70,543 40,544 13,597 11,867 10,217 9,044 8, ,961 Total Residential Sales 13,328 42,968 79,767 94,934 59,352 70,543 40,544 13,597 11,867 10,217 9,044 8, ,961 C&I Monthly BGSS Sales (GSL, DGC) 2,354 5,705 9,530 10,904 7,220 8,424 5,427 2,508 2,090 1,987 1,959 1,651 59,760 C&I Monthly BGSS Sales (CNG, NGV, IS) C&I Periodic BGSS Sales 635 2,471 4,944 6,686 4,113 4,837 2, , Total Commercial & Industrial Sales 3,057 8,238 14,542 17,651 11,384 13,309 7,913 2,981 2,640 2,549 2,452 2,156 88,871 Total Firm Sales 16,384 51,206 94, ,584 70,736 83,852 48,457 16,578 14,507 12,765 11,496 10, ,832 Interruptible IGS (Sch. 4a) Sayreville (Sch. 4b) Forked River (Sch. 4c) ,486 Off System Sales (Sch. 4e) 20,713 31,620 36,581 23,628 31,756 43,409 15,185 32,401 30,454 46,037 51,912 45, ,913 Storage Incentive Sales , ,200 Total Non-Firm Sales 20,952 31,783 36,581 23,662 31,770 43,409 34,389 32,416 30,580 46,478 52,204 45, ,707 Total Sales 37,336 82, , , , ,261 82,846 48,995 45,087 59,243 63,700 56, ,539 Firm Transportation 1,972 2,523 2,412 2,842 2,529 2,460 2,328 2,360 1,772 1,493 1,732 1,680 26,102 GSS Tranportation ,671 2,155 1,331 1, ,506 GSL Tranportation 3,456 8,071 13,388 14,511 9,843 11,578 7,455 3,760 3,023 2,534 2,551 2,388 82,558 NGV Transport DGC Balancing DGC Firm Transportation ,216 Residential Transportation 1,028 3,212 5,877 6,812 4,190 4,946 2, ,154 Interruptible Transportation 1,371 1,346 1, ,132 1,294 1,302 1,192 1,101 1,160 1,161 14,114 Lakewood Cogen 13,766 2,833 2, ,017 2,962 8,255 5,374 11,481 10,339 8,792 69,562 Ocean Peaking Power 6, ,164 2,270 6,469 7,140 4,401 29,226 Red Oak 8,919 24,965 35,407 14,531 28,816 34,959 28,728 33,080 25,901 37,903 38,825 35, ,366 Total Transportation 37,208 44,565 62,618 42,474 48,659 60,203 47,624 51,402 40,748 62,089 62,800 54, ,149 Total Mtherms 74, , , , , , , ,396 85, , , ,198 1,588,687

12 NEW JERSEY NATURAL GAS COMPANY MARGIN SHARING FROM STORAGE INCENTIVE AND SAYREVILLE / FORKED RIVER GAS COST SUMMARY BGSS YEAR 2018 $(000) & (000)THERMS Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 TOTAL SAYREVILLE SCHEDULE 4b Therm Sales (Sch. 3) Rate per therm n/a Cost of Gas (Sch. 2a) FORKED RIVER SCHEDULE 4c Therm Sales (Sch. 3) ,486 Rate per therm n/a Cost of Gas (Sch.2a) Storage Incentive SCHEDULE 4j Storage Gain (Loss) 7,306 3, ,554 3,390 3,260 2,649 1,810 1,654 25,388 NJNG 20% (Sch.1, L.10) 1, ,078

13 NEW JERSEY NATURAL GAS COMPANY MARGIN SHARING FROM OFF-SYSTEM SALES AND CAPACITY RELEASE AND CREDITS FROM BALANCING CHARGES BGSS YEAR 2018 $(000) & (000)THERMS Actual Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 OFF-SYSTEM SALES SCHEDULE 4e Revenues 3,877 8,060 11,339 11,348 11,514 11,838 4,227 8,122 8,234 12,353 14,810 11, ,504, Net Revenue 3,877 8,060 11,339 11,348 11,514 11,838 4,227 8,122 8,234 12,353 14,810 11, ,504 Therm sales 20,713 31,620 36,581 23,628 31,756 43,409 15,185 32,401 30,454 46,037 51,912 45, ,913 Rate per therm COG Cost of Gas (Sch. 2a) 2,605 6,953 9,405 10,952 10,382 10,547 3,947 7,766 7,550 11,640 13,736 10, ,357 Net Margin 1,272 1,107 1, ,132 1, , ,147 Customer 85% 1, , , ,475 (Sch.1,L 11) NJNG 15% ,672 Total Credit = Cost of Gas plus sharings 3,686 7,894 11,049 11,288 11,344 11,645 4,185 8,068 8,131 12,246 14,649 11, ,832 CAPACITY RELEASE SCHEDULE 4f Revenue 3,611 3,584 3,934 4,469 3,963 3,845 2,300 2,517 2,750 2,455 2,473 2,313 38,216 Customer 85% 3,069 3,047 3,344 3,799 3,369 3,269 1,955 2,139 2,338 2,087 2,102 1,966 32,484 (Sch.1.,L 12) BALANCING CREDITS & PENALTY CHARGES SCHEDULE 4g Current Month MBR Penalty Charges Current Month Balancing Charges 1,349 4,083 7,375 8,738 5,518 6,536 3,812 1,381 1,184 1, ,854 (Sch.1.,L 14) 1,349 4,084 7,375 8,889 5,567 6,563 3,813 1,392 1,193 1, ,101

14 NEW JERSEY NATURAL GAS COMPANY SUPPLIER REFUNDS AND MISCELLANEOUS ADJUSTMENTS BGSS YEAR 2018 $(000) SCHEDULE 5 (Sch 1. LINE 13) OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP T O T A L S -

15 COMBINED $(000) SCHEDULE 6 DATE BALANCE AVERAGE ANNUAL ANNUAL SEP ,910 NEW JERSEY NATURAL GAS COMPANY BGSS YEAR 2018 COMPUTATION OF INTEREST ON UNDER/(OVER) RECOVERED BALANCES BALANCE RATE RATE 6.90% OCT ,598 9, NOV ,490 8, DEC , JAN ,049 3, FEB ,422 6, MAR ,549 7, APR ,085 6, MAY ,002 6, JUN ,693 5, JUL ,326 5, AUG ,663 4, SEP ,137 4, TOTAL INTEREST TO BE CREDITED TO CUSTOMER 0

16 INDEX OF SCHEDULES: EXHIBIT B Two Months Actual through November 2018 and Ten Months Projected through September Under/(Over) Recovered Gas Costs 2a. Gas Costs 2b. Gas Cost Recoveries 2c. Total Gas Costs 3. Therm Sales 4a. N/A 4b. Sales at Sayreville 4c. Sales at Forked River 4d. N/A 4e. Off-System Sales 4f. Capacity Release 4g. Balancing Credits and Penalty Charges 4h. N/A 4j. Storage Incentive 5. Supplier Refunds and Miscellaneous Adjustments 6. Computation of Interest

17 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 TOTAL 1. Under/(Over) Recovered Gas Costs Beg. of Period 4,137 4,186 4,327 6,746 11,317 18,807 24,669 22,801 22,059 21,851 21,732 22,337 4, Net Cost Appl. To BGSS Sales (Sch 2a) 13,620 31,113 45,855 58,893 52,868 41,985 16,455 9,296 7,285 7,421 8,058 7, , BGSS Recoveries (Sch 2b) (9,040) (21,880) (32,362) (39,939) (33,128) (26,699) (13,075) (6,480) (4,533) (4,515) (4,442) (4,309) (200,401) 4. Under/(Over) Rec. Gas Costs - Current Period (L.2 - L.3) 4,580 9,233 13,493 18,955 19,740 15,286 3,379 2,816 2,752 2,906 3,615 3, ,133 Adjustments 5. Storage Incentive (Sch.4j) , Off-System Sales (Sch.4e) (478) (1,076) (630) (1,849) (1,655) (334) (281) (288) (281) (288) (288) (281) (7,730) 7. Capacity Rel. (Sch.4f ) (2,046) (2,061) (2,086) (2,086) (1,920) (2,086) (1,695) (1,749) (1,695) (1,749) (1,749) (1,695) (22,616) 8. Supplier Ref. and Misc. Adj.(Sch.5) Balancing Credits and Penalty Charges (Sch.4g) (2,538) (5,954) (8,358) (10,449) (8,674) (7,004) (3,571) (1,822) (1,283) (1,290) (1,274) (1,245) (53,461) 10. Total Debits and Credits (L.5 through L.9) (4,532) (9,091) (11,074) (14,384) (12,249) (9,423) (5,247) (3,558) (2,960) (3,026) (3,010) (2,921) (81,476) 17. Under/(Over) Recov.Gas Costs. End of Period (L's.1,4,&10) 4,186 4,327 6,746 11,317 18,807 24,669 22,801 22,059 21,851 21,732 22,337 22,794 22,794 NEW JERSEY NATURAL GAS COMPANY UNDER/(OVER) RECOVERED GAS COSTS BGSS YEAR 2019 $(000) SCHEDULE 1 Actual Estimate

18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 TOTAL Total Gas Costs 1 13,027 33,342 59,699 65,769 62,887 55,505 18,510 15,314 12,832 16,326 18,113 15, ,673 Sayreville (Sch. 4b) Forked Rv. (Sch. 4c) Off System Sales (Sch.4e) 1,794 4,650 16,292 9,324 12,274 15,974 4,049 8,064 7,531 10,902 12,066 9, ,528 Capacity Release (Sch. 4f) (2,407) (2,425) (2,454) (2,454) (2,259) (2,454) (1,994) (2,057) (1,994) (2,057) (2,057) (1,994) (26,607) Storage Incentive Sales Company Use Gas Total Reductions (593) 2,229 13,844 6,875 10,019 13,520 2,055 6,018 5,547 8,906 10,055 7,662 86,139 Net Cost Appl.To BGSS Sales 13,620 31,113 45,855 58,893 52,868 41,985 16,455 9,296 7,285 7,421 8,058 7, ,534 (Sch.1.,L.2) BGSS Sales 25,795 61,996 87, ,185 91,542 74,025 37,188 18,457 12,908 12,904 12,715 12, ,931 Monthly BGSS Sales (GSL, DGC) 3,182 6,524 8,956 10,726 8,996 7,506 4,299 2,509 1,781 1,833 1,832 1,777 59,920 Monthly BGSS Sales (IS, CNG, NGV) Periodic BGSS Sales 22,561 55,415 78,758 99,397 82,484 66,458 32,827 15,886 11,065 11,008 10,821 10, ,282 Recovery Rate $ per Therm: Periodic BGSS Rate Monthly BGSS Sales (GSL, DGC) Monthly BGSS Sales (IS, CNG, NGV) Recoveries: Periodic BGSS 7,714 18,946 26,927 33,984 28,201 22,722 11,223 5,431 3,783 3,764 3,700 3, ,021 Monthly BGSS(GSL, DGC) 1,300 2,904 5,393 5,916 4,888 3,940 1,821 1, ,991 Monthly BGSS (IS, CNG, NGV) Total BGSS Recovery 9,040 21,880 32,362 39,939 33,128 26,699 13,075 6,480 4,533 4,515 4,442 4, ,401 (Sch. 1, L. 3)) NEW JERSEY NATURAL GAS COMPANY GAS COSTS AND RECOVERIES BGSS YEAR 2019 $(000) & (000)THERMS Actual Estimate COST OF GAS-CURRENT PERIOD SCHEDULE 2a REDUCTIONS TO COST OF GAS GAS COST RECOVERIES SCHEDULE 2b 1 Total Gas Costs equals the sum of Total Allocated Costs on Schedule 2c and the non-production Company Use Gas. The non-production Company Use Gas is included in Total Gas Costs and removed in the Reduction to Gas Costs on Schedule 2a for no impact to the BGSS.

19 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 MDth Beginning of Month Storage Balance 24,894 28,396 24,195 17,441 9,396 2, ,642 8,921 13,060 17,600 22,125 Commodity Purchases 7,442 3,138 5,717 5,375 5,723 9,495 9,380 9,373 8,488 10,464 11,008 9,947 Sub-total of Available Supplies A 32,336 31,534 29,911 22,817 15,118 12,249 9,881 14,015 17,409 23,524 28,609 32,072 Less volumes with assigned cost allocations Off System Sales, Electric Gen, Other 899 1,491 3,659 2,364 3,177 4,341 1,519 3,245 3,050 4,630 5,211 4,544 Monthly BGSS Sales (GSL, DGC) , Monthly BGSS Sales (IS, CNG, NGV) FEED Sales Company Use Non Prod Sales 2 2 Sub-total of Assigned Cost Allocations B 1,224 2,151 4,561 3,443 4,082 5,098 1,955 3,502 3,234 4,819 5,401 4,728 Allocation WACOG Volume C 31,112 29,383 25,350 19,374 11,036 7,151 7,927 10,513 14,175 18,705 23,208 27,344 volume available for allocation $000 Beginning of Month Storage Balance 54,846 63,114 54,449 39,693 21,720 7,208 2,309 12,603 22,488 31,943 42,770 53,295 Beginning of Month WACOG Inventory 39,620 59,542 53,943 42,831 25,281 7, ,718 11,121 19,946 28,569 51,102 Commodity Purchases 32,327 9,839 25,068 21,481 22,286 34,256 24,554 22,929 20,653 25,304 40,699 21,030 Demand Charges 8,881 9,223 8,764 8,764 8,730 8,734 8,661 8,673 10,459 10,471 10,471 10,459 Sub-total of Available Supplies D 135, , , ,770 78,017 58,120 35,831 48,923 64,722 87, , ,885 Less volumes with assigned cost allocations Off System Sales, Electric Gen, Other 1,805 4,654 16,298 9,330 12,278 15,975 4,049 8,075 7,541 10,963 12,113 9,656 Monthly BGSS Sales (GSL, DGC) 1,300 2,904 5,393 5,916 4,888 3,940 1,821 1, Monthly BGSS Sales (IS, CNG, NGV) GSL, DGC Sales Balancing Sub-total of Assigned cost allocations E 3,383 8,107 22,445 16,137 17,920 20,548 6,243 9,323 8,433 11,860 13,001 10,481 Allocation WACOG Costs F 132, , ,778 96,633 60,097 37,572 29,588 39,600 56,289 75, , ,404 $ available for allocation $/Dth WACOG G MDth Periodic BGSS Sales 2,256 5,541 7,876 9,940 8,248 6,646 3,283 1,589 1,107 1,101 1,082 1,060 CoUse & UFG Periodic BGSS Sales & CoUse & UFG H 2,266 5,550 7,884 9,951 8,257 6,653 3,286 1,590 1,108 1,102 1,083 1,061 volume to be allocated $000 Periodic BGSS ($/Therm WACOG * Periodic BGSS volume) 1 I = 9,634 25,235 37,254 49,632 44,967 34,957 12,267 5,991 4,399 4,467 5,112 4,868 allocated cost Plus assigned cost allocations Off System Sales, Electric Gen, Other 1,805 4,654 16,298 9,330 12,278 15,975 4,049 8,075 7,541 10,963 12,113 9,656 Monthly BGSS Sales (GSL, DGC) 1,300 2,904 5,393 5,916 4,888 3,940 1,821 1, Monthly BGSS Sales (IS, CNG, NGV) GSL, DGC Sales Balancing FEED Sales Sub-total of Assigned cost allocations J 3,383 8,107 22,445 16,137 17,920 20,548 6,243 9,323 8,433 11,860 13,001 10,481 Total Allocated Costs (Sch 2a Total Gas Costs) K 13,018 33,342 59,699 65,769 62,887 55,505 18,510 15,314 12,832 16,326 18,113 15,349 End of Month Storage Balance L 63,114 54,434 39,693 21,720 7,208 2,309 12,603 22,488 31,943 42,770 53,295 61,588 Total Allocated Costs & Storage Balances M 76,132 87,776 99,392 87,489 70,095 57,814 31,113 37,802 44,775 59,096 71,408 76,936 Current Month WACOG Inventory Balance N 59,542 53,943 42,831 25,281 7, ,718 11,121 19,946 28,569 51,102 58,949 SCHEDULE 2c Actual Estimate NEW JERSEY NATURAL GAS COMPANY TOTAL GAS COSTS BGSS YEAR 2019

20 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 TOTAL Residential BGSS Sales 21,362 52,059 73,722 92,982 77,223 62,384 31,175 15,135 10,612 10,547 10,364 10, ,715 Total Residential Sales 21,362 52,059 73,722 92,982 77,223 62,384 31,175 15,135 10,612 10,547 10,364 10, ,715 C&I Monthly BGSS Sales (GSL, DGC) 3,182 6,524 8,956 10,726 8,996 7,506 4,299 2,509 1,781 1,833 1,832 1,777 59,920 C&I Monthly BGSS Sales (CNG, NGV, IS) C&I Periodic BGSS Sales 1,199 3,356 5,036 6,415 5,261 4,074 1, ,568 Total Commercial & Industrial Sales 4,433 9,937 14,055 17,203 14,319 11,642 6,012 3,322 2,296 2,357 2,351 2,291 90,216 Total Firm Sales 25,795 61,996 87, ,185 91,542 74,025 37,188 18,457 12,908 12,904 12,715 12, ,931 Interruptible IGS (Sch. 4a) Sayreville (Sch. 4b) Forked River (Sch. 4c) Off System Sales (Sch. 4e) 8,953 14,893 36,581 23,628 31,756 43,409 15,185 32,401 30,454 46,037 51,912 45, ,425 Storage Incentive Sales Total Non-Firm Sales 8,987 14,906 36,594 23,641 31,767 43,411 15,188 32,447 30,497 46,295 52,114 45, ,286 Total Sales 34,782 76, , , , ,436 52,375 50,905 43,405 59,199 64,829 57, ,217 Firm Transportation 2,078 2,276 2,735 3,092 2,667 2,654 2,289 2,249 2,152 1,915 1,765 1,772 27,643 GSS Tranportation ,488 1,888 1,546 1, ,739 GSL Tranportation 4,454 9,006 11,723 14,152 11,775 9,559 5,510 3,348 2,491 2,575 2,579 2,501 79,673 NGV Transport DGC Balancing DGC Firm Transportation ,354 Residential Transportation 1,239 2,976 4,155 5,225 4,260 3,325 1, ,235 Interruptible Transportation 1,783 1,539 1,207 1, ,154 1,254 1,309 1,179 1,018 1,107 1,064 14,670 Lakewood Cogen 9, ,500 15,500 14,000 15,500 15,000 15,500 15,000 15,500 15,500 15, ,952 Ocean Peaking Power 4, ,967 4,969 9,632 8,016 6,701 37,003 Red Oak 1,723 6,306 38,750 34,100 30,800 41,850 33,000 40,300 39,000 40,300 40,300 39, ,429 Total Transportation 26,082 24,419 76,185 75,629 66,602 75,805 60,250 66,225 65,962 72,117 70,437 67, ,894 Total Mtherms 60, , , , , , , , , , , ,060 1,686,111 SCHEDULE 3 Actual Estimate NEW JERSEY NATURAL GAS COMPANY THERM SALES BGSS YEAR 2019 (000)THERMS

21 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 TOTAL Therm Sales (Sch. 3) Rate per therm n/a Cost of Gas (Sch. 2a) Therm Sales (Sch. 3) Rate per therm n/a Cost of Gas (Sch.2a) Storage Gain (Loss) 2, ,500 1,500 1,500 1,504 1,504 1,500 11,657 NJNG 20% (Sch.1, L.10) ,331 Actual Estimate NEW JERSEY NATURAL GAS COMPANY MARGIN SHARING FROM STORAGE INCENTIVE AND SAYREVILLE / FORKED RIVER GAS COST SUMMARY BGSS YEAR 2019 $(000) & (000)THERMS SAYREVILLE SCHEDULE 4b FORKED RIVER SCHEDULE 4c Storage Incentive SCHEDULE 4j

22 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Revenues 2,357 5,916 17,034 11,500 14,220 16,366 4,380 8,402 7,862 11,241 12,405 9, ,622, Net Revenue 2,357 5,916 17,034 11,500 14,220 16,366 4,380 8,402 7,862 11,241 12,405 9, ,622 Therm sales 8,953 14,893 36,581 23,628 31,756 43,409 15,185 32,401 30,454 46,037 51,912 45, ,425 Rate per therm COG Cost of Gas (Sch. 2a) 1,794 4,650 16,292 9,324 12,274 15,974 4,049 8,064 7,531 10,902 12,066 9, ,528 Net Margin 563 1, ,176 1, ,094 Customer 85% 478 1, ,849 1, ,730 (Sch.1,L 11) NJNG 15% ,364 Total Credit = Cost of Gas plus sharings 2,272 5,726 16,922 11,174 13,928 16,307 4,330 8,352 7,812 11,190 12,354 9, ,258 Revenue 2,407 2,425 2,454 2,454 2,259 2,454 1,994 2,057 1,994 2,057 2,057 1,994 26,607 Customer 85% 2,046 2,061 2,086 2,086 1,920 2,086 1,695 1,749 1,695 1,749 1,749 1,695 22,616 (Sch.1.,L 12) Current Month MBR Penalty Charges Current Month Balancing Charges 2,538 5,954 8,358 10,449 8,674 7,004 3,571 1,822 1,283 1,290 1,274 1,245 53,461 (Sch.1.,L 14) 2,538 5,954 8,358 10,449 8,674 7,004 3,571 1,822 1,283 1,290 1,274 1,245 53,461 NEW JERSEY NATURAL GAS COMPANY MARGIN SHARING FROM OFF-SYSTEM SALES AND CAPACITY RELEASE AND CREDITS FROM BALANCING CHARGES BGSS YEAR 2019 $(000) & (000)THERMS Actual Estimate OFF-SYSTEM SALES SCHEDULE 4e CAPACITY RELEASE SCHEDULE 4f BALANCING CREDITS & PENALTY CHARGES SCHEDULE 4g

23 NEW JERSEY NATURAL GAS COMPANY SUPPLIER REFUNDS AND MISCELLANEOUS ADJUSTMENTS BGSS YEAR 2019 $(000) SCHEDULE 5 (Sch 1. LINE 13) OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP T O T A L S -

24 1,117 NEW JERSEY NATURAL GAS COMPANY 6.90% BGSS YEAR 2019 COMPUTATION OF INTEREST ON UNDER/(OVER) RECOVERED BALANCES COMBINED $(000) SCHEDULE 6 DATE BALANCE AVERAGE ANNUAL ANNUAL BALANCE RATE RATE SEP ,137 OCT ,186 4, NOV ,327 4, DEC ,746 5, JAN ,317 9, FEB ,807 15, MAR ,669 21, APR ,801 23, MAY ,059 22, JUN ,851 21, JUL ,732 21, AUG ,337 22, SEP ,794 22, TOTAL INTEREST TO BE CREDITED TO CUSTOMER 0

25 EXHIBIT C IMPACT OF RATE CHANGE ON TYPICAL CUSTOMERS

26 Exhibit C New Jersey Natural Gas Company Net impact of Proposed Rate Changes BPU Docket No. GR F/Y 2019 Component of 1/1/19 Rates 2/1/19 Rates Change Pre-tax Post-tax Pre-tax Post-tax Pre-tax Post-tax BGSS BGSS $ $ $ $ $ $ Impact on Residential Non-Heating Customers 1/1/19 Rates 25 therm bill Customer Charge $8.70 $8.70 Delivery $ $14.01 BGSS $ $9.12 Total $ $31.83 Rates effective 2/1/19 Customer Charge $8.70 $8.70 Delivery $ $14.01 BGSS $ $10.32 Total $ $33.03 Increase $1.20 Increase as a percent 3.8% Impact on Residential Heating Customers 1/1/19 Rates 100 therm bill 1,000 therm annual bill Customer Charge $8.70 $8.70 $ Delivery $ $51.41 $ BGSS $ $36.46 $ Total $ $96.57 $ Rates effective 2/1/19 Customer Charge $8.70 $8.70 $ Delivery $ $51.41 $ BGSS $ $41.29 $ Total $ $ $1, Increase $4.83 $48.30 Increase as a percent 5.0% 4.9% Impact on Commercial GSS Customers 1/1/19 Rates 100 therm bill Customer Charge $26.37 $26.37 Delivery $ $46.31 BGSS $ $36.46 Total $ $ Rates effective 2/1/19 Customer Charge $26.37 $26.37 Delivery $ $46.31 BGSS $ $41.29 Total $ $ Increase $4.83 Increase as a percent 4.4% Projected BGSS Recovery for Remainder of 2019 BGSS Year Projected Therms February 2019 through September 2019: Periodic BGSS 241,150 (000s) Projected Recovery at Current Rates Projected Recovery at Proposed Rates Change $million $million $million Pre-Tax $82.4 $93.4 $10.9 Post-Tax $87.9 $99.6 $11.7

27 EXHIBIT D TARIFF SHEETS

28 REDLINE TARIFF SHEETS

29 NEW JERSEY NATURAL GAS COMPANY FifthFourth Revised Sheet No. 155 BPU No. 9 - Gas Superseding FourthThird Revised Sheet No. 155 RIDER A BASIC GAS SUPPLY SERVICE - BGSS(Continued) PERIODIC BASIC GAS SUPPLY SERVICE (BGSS) CHARGE CLASS APPLICATION CHARGE RS and GSS sales customers, and ED sales customers eligible for service under service classification GSS Included in the Basic Gas Supply Charge BALANCING CHARGE $ per therm CLASS APPLICATION CHARGE RS, GSS, GSL, DGR, DGC-Balancing, and ED customers eligible for service under service classifications GSS and GSL Included in the Delivery Charge $ per therm Date of Issue: December 28September 20, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after FebruaryOctober 1, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

30 NEW JERSEY NATURAL GAS COMPANY EleventhTenth Revised Sheet No. 252 BPU No. 9 - Gas Superseding TenthNinth Revised Sheet No. 252 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Heating Customers Customer Charge Customer Charge per meter per month Bundled Sales Transport Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP (0.0141) (0.0141) Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 2820, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after FebruaryJanuary 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

31 NEW JERSEY NATURAL GAS COMPANY EleventhTenth Revised Sheet No. 253 BPU No. 9 - Gas Superseding TenthNinth Revised Sheet No. 253 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Non-Heating Customers Customer Charge Customer Charge per meter per month Bundled Sales Transport Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 2820, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after FebruaryJanuary 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

32 NEW JERSEY NATURAL GAS COMPANY EleventhTenth Revised Sheet No. 254 BPU No. 9 - Gas Superseding TenthNinth Revised Sheet No. 254 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Distributed Generation Service Customer Charge Customer Charge per meter per month Nov - Apr May - Oct Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 2820, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after FebruaryJanuary 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

33 NEW JERSEY NATURAL GAS COMPANY EleventhTenth Revised Sheet No. 255 BPU No. 9 - Gas Superseding TenthNinth Revised Sheet No. 255 SUMMARY OF FIRM COMMERCIAL RATE COMPONENTS General Service - Small (GSS) Bundled Sales Transport Reference Customer Charge Customer Charge per meter per month Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP (0.0354) (0.0354) Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 2820, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after FebruaryJanuary 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

34 CLEAN TARIFF SHEETS

35 NEW JERSEY NATURAL GAS COMPANY Fifth Revised Sheet No. 155 BPU No. 9 - Gas Superseding Fourth Revised Sheet No. 155 RIDER A BASIC GAS SUPPLY SERVICE - BGSS(Continued) PERIODIC BASIC GAS SUPPLY SERVICE (BGSS) CHARGE CLASS APPLICATION CHARGE RS and GSS sales customers, and ED sales customers eligible for service under service classification GSS Included in the Basic Gas Supply Charge BALANCING CHARGE $ per therm CLASS APPLICATION CHARGE RS, GSS, GSL, DGR, DGC-Balancing, and ED customers eligible for service under service classifications GSS and GSL Included in the Delivery Charge $ per therm Date of Issue: December 28, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after February 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

36 NEW JERSEY NATURAL GAS COMPANY Eleventh Revised Sheet No. 252 BPU No. 9 - Gas Superseding Tenth Revised Sheet No. 252 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Heating Customers Customer Charge Customer Charge per meter per month Bundled Sales Transport Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP (0.0141) (0.0141) Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 28, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after February 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

37 NEW JERSEY NATURAL GAS COMPANY Eleventh Revised Sheet No. 253 BPU No. 9 - Gas Superseding Tenth Revised Sheet No. 253 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Non-Heating Customers Customer Charge Customer Charge per meter per month Bundled Sales Transport Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 28, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after February 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

38 NEW JERSEY NATURAL GAS COMPANY Eleventh Revised Sheet No. 254 BPU No. 9 - Gas Superseding Tenth Revised Sheet No. 254 SUMMARY OF RESIDENTIAL RATE COMPONENTS Residential Distributed Generation Service Customer Charge Customer Charge per meter per month Nov - Apr May - Oct Reference Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 28, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after February 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

39 NEW JERSEY NATURAL GAS COMPANY Eleventh Revised Sheet No. 255 BPU No. 9 - Gas Superseding Tenth Revised Sheet No. 255 SUMMARY OF FIRM COMMERCIAL RATE COMPONENTS General Service - Small (GSS) Bundled Sales Transport Reference Customer Charge Customer Charge per meter per month Delivery Charge ( DEL ) per therm Transport Rate: Pre-tax Base Rate SUT Rider B After-tax Base Rate CIP (0.0354) (0.0354) Rider I EE Rider F Total Transport Rate a Balancing Charge b Rider A Societal Benefits Charge ( SBC ): NJ s Clean Energy Rider E RA Rider C USF Rider H Total SBC c Delivery Charge (DEL) a+b+c=d Basic Gas Supply Charge ( BGS ) BGS e x Rider A With the exception of the Customer Charge, these rates are on a per-therm basis. Customer Charge, DEL rate and BGS rate are presented on customer bills. Date of Issue: December 28, 2018 Effective for service rendered on Issued by: Mark G. Kahrer, Vice President and after February 1, 2019 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR