Item 7.01. Regulation FD Disclosure

As previously reported in the Registrant's most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, filed with the Securities and Exchange Commission on August 5, 2008, New Jersey Natural Gas Company ("NJNG"), a wholly-owned subsidiary of the Registrant, reached an agreement on July 30, 2008, with New Jersey Department of the Public Advocate, Division of Rate Counsel ("Rate Counsel") regarding the financial terms of NJNG's base rate case (the "Financial Terms Stipulation"). On August 14, 2008, NJNG, Rate Counsel and the staff of the New Jersey Board of Public Utilities ("BPU") signed a Rate Design and Tariff Stipulation. This Rate Design and Tariff Stipulation incorporates the Financial Terms Stipulation, which was not initially signed by the staff of the BPU, and also represents agreement among the parties on the remaining rate design and tariff issues. The Administrative Law Judge assigned to NJNG's base rate case has rendered an initial decision recommending approval of the settlement by the BPU Commissioners. The BPU Commissioners are expected to consider this matter at the regularly scheduled October 2, 2008 BPU meeting.

The information contained in this Item 7.01 is not "filed" for purposes of the Securities Exchange Act of 1934, as amended, and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent NJR specifically incorporates the information by reference. By including this Item 7.01 disclosure in this Current Report on Form 8-K and furnishing this information, NJR makes no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD.

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