New Jersey Natural Gas Co. (NJNG) received the distinction Monday of having its long-term debt rating raised to “Aa3” from “A2” by Moody’s Investors Service, making it the first gas utility to be upgraded by the ratings agency this year.

The New Jersey Resources Corp. (NJR) subsidiary’s “credit measures have proven much stronger than most of its peers during the past few years,” said Moody’s analysts, who cited its “continued growth potential through the attractive housing market and strong economic base of its service area.”

Moody’s said NJNG’s business strategy is “to grow within budgeted means without relying on traditional base rate increases” and also cited the margin-sharing incentive programs and weather-normalization clause, which were developed in partnership with the New Jersey Board of Public Utilities and the Ratepayer Advocate’s Office.

“We are proud to be acknowledged by an independent and well-respected organization such as Moody’s” said Laurence M. Downes, NJR’s CEO. “The strength of our financial profile reflects NJNG’s solid fundamentals and our employees’ success in meeting the needs of our diverse stakeholders.”

NJNG has been increasing its customer base at a rate of about 3% a year, and captures about 95% of the new construction market in its region. It also holds the current record for the number of consecutive years without a traditional base rate filing among all of the state’s natural gas, electric and water companies. Since the last filing in 1993, NJNG has invested more than half a billion dollars in new capital while adding over 120,000 new heating customers.

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