SERVICE LIST. Craig Lynch New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ NJNG

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2 In the Matter of the Petition of New Jersey Natural Gas Company For Approval of an Increase in Gas Base Rates and for Changes in its Tariff for Gas Service, approval of SAFE Program Extension, and Approval of SAFE Extension and NJ RISE Rate Recovery Mechanisms Pursuant to N.J.S.A. 48:2-21, 48: and for Changes to Depreciation Rates for Gas Property Pursuant to N.J.S.A. 48:2-18 BPU Docket No. GR SERVICE LIST NJNG Mark R. Sperduto New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Andrew K. Dembia, Esq. New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Michael P. Moscufo 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 James Corcoran New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Marianne Harrell New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Craig Lynch New Jersey Natural Gas Company 1415 Wyckoff Road P.O. Box 1464 Wall, NJ Frederick W. Peters, Esq th Street, NW, Suite 750 Washington, DC Daniel P. Yardley Yardley & Associates 2409 Providence Hills Drive Matthews, North Carolina Ronald E. White Foster Associates, Inc S. Tamiami Trail, Suite 260 Fort Myers, FL Paul R. Moul P. Moul & Associates 251 Hopkins Road Haddonfield, NJ NJ BOARD OF PUBLIC UTILITIES Mark Beyer, Chief Economist N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Dr. Son Lin Lai N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ

3 In the Matter of the Petition of New Jersey Natural Gas Company For Approval of an Increase in Gas Base Rates and for Changes in its Tariff for Gas Service, approval of SAFE Program Extension, and Approval of SAFE Extension and NJ RISE Rate Recovery Mechanisms Pursuant to N.J.S.A. 48:2-21, 48: and for Changes to Depreciation Rates for Gas Property Pursuant to N.J.S.A. 48:2-18 BPU Docket No. GR SERVICE LIST Jerry May N.J. Board of Public Utilities 44 South Clinton Avenue, 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Stacy Peterson N.J. Board of Public Utilities 44 South Clinton Avenue, 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Henry Rich N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Paul Flanagan, Esq. N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Eric Hartsfield N.J. Board of Public Utilities 44 South Clinton Avenue, 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Christine Lin N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Megan Lupo N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Andrea Reid N.J. Board of Public Utilities 44 South Clinton Avenue, 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Robert Schultheis N.J. Board of Public Utilities 44 South Clinton Avenue, 3 rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Michael Stonack N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ

4 In the Matter of the Petition of New Jersey Natural Gas Company For Approval of an Increase in Gas Base Rates and for Changes in its Tariff for Gas Service, approval of SAFE Program Extension, and Approval of SAFE Extension and NJ RISE Rate Recovery Mechanisms Pursuant to N.J.S.A. 48:2-21, 48: and for Changes to Depreciation Rates for Gas Property Pursuant to N.J.S.A. 48:2-18 BPU Docket No. GR SERVICE LIST Scott Sumliner N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Jacqueline Galka N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ Rene Demuynck N.J. Board of Public Utilities 44 South Clinton Avenue, 3rd Floor, Suite 314 P.O. Box 350 Trenton, NJ DIVISION OF RATE COUNSEL Brian O. Lipman Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Stefanie Brand, Director Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Henry Ogden, Esq. Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Sarah H. Steindel, Esq. Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Felicia Thomas-Friel, Esq. Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Shelly Massey Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J Maura Caroselli Division of Rate Counsel 140 East Front Street 4th Floor P. O. Box 003 Trenton, N.J David Dismukes, Ph.D. Acadian Consulting Group 5800 One Perkins Place Drive Suite 5-F Baton Rouge, LA David Peterson Chesapeake Regulatory Consultants, Inc Southern Maryland Boulevard Suite 202 Dunkirk, MD

5 In the Matter of the Petition of New Jersey Natural Gas Company For Approval of an Increase in Gas Base Rates and for Changes in its Tariff for Gas Service, approval of SAFE Program Extension, and Approval of SAFE Extension and NJ RISE Rate Recovery Mechanisms Pursuant to N.J.S.A. 48:2-21, 48: and for Changes to Depreciation Rates for Gas Property Pursuant to N.J.S.A. 48:2-18 BPU Docket No. GR SERVICE LIST William Dunkel William Dunkel & Associates 8625 Farmington Cemetary Road Pleasant Plains, IL Mathew Kahal Exeter Associates, Inc Pheasant Xing Charlottesville, VA Robert Henkes Henkes Consulting 7 Sunset Road Old Greenwich, CT Susan Baldwin 17 Arlington Street Newburyport, MA Andrea Crane The Columbia Group, Inc. P.O. Box 810 Georgetown, CT DEPT. OF LAW & PUBLIC SAFETY DIVISON OF LAW Christopher Psihoulis, DAG Dept. of Law & Public Safety Division of Law 124 Halsey Street P.O. Box Newark, NJ Alex Moreau, DAG Dept. of Law & Public Safety Division of Law 124 Halsey Street P.O. Box Newark, NJ Jenique Jones, Paralegal Dept. of Law & Public Safety Division of Law 124 Halsey Street P.O. Box Newark, NJ Caroline Vachier, Section Chief Deputy Attorney General Dept. of Law & Public Safety Division of Law 124 Halsey Street P.O. Box Newark, NJ Angela Hickson Division of Law 124 Halsey Street P.O. Box Newark, NJ TGX Steven S. Goldenberg, Esq. Fox Rothschild LLP 997 Lenox Drive, Building 3 Lawrenceville, NJ Paul F. Forshay, Esq. Sutherland, Asbill & Brennan, LLP 700 Sixth Street, N.W., Suite 700 Washington, DC

6 In the Matter of the Petition of New Jersey Natural Gas Company For Approval of an Increase in Gas Base Rates and for Changes in its Tariff for Gas Service, approval of SAFE Program Extension, and Approval of SAFE Extension and NJ RISE Rate Recovery Mechanisms Pursuant to N.J.S.A. 48:2-21, 48: and for Changes to Depreciation Rates for Gas Property Pursuant to N.J.S.A. 48:2-18 BPU Docket No. GR AARP Douglas Johnston American Association of Retired Persons 101 Rockinghan Row Forrestal Village Princeton, NJ Evelyn Liebman American Association of Retired Persons 101 Rockinghan Row Forrestal Village Princeton, NJ Janine Bauer Szaferman, Lakind, Blumstein & Blader 101 Grovers Mill Road, Suite 200 Lawrenceville, NJ PSEG Joseph F. Accardo Jr. PSEG Services Corporation 80 Park Plaza, T5G P. O. Box 570 Newark, New Jersey Martin C. Rothfelder PSEG Services Corporation 80 Park Plaza, T5G P. O. Box 570 Newark, New Jersey Constance E. Lembo PSEG Services Corporation 80 Park Plaza, T5G P. O. Box 570 Newark, New Jersey SERVICE LIST NJUSA James H. Laskey Norris, McLaughlin & Marcus, P.A. 721 Route Suite 200 P.O. Box 5933 Bridgewater, NJ

7 NEW JERSEY NATURAL GAS COMPANY PRE-FILED SUPPLEMENTAL DIRECT TESTIMONY OF TINA M. TREBINO DIRECTOR, RATES AND TARIFF I. Introduction Q. PLEASE STATE YOUR NAME, AFFILIATION AND BUSINESS ADDRESS. A. My name is Tina M. Trebino and I am Director, Rates and Tariff for New Jersey Natural Gas Company (the Company or NJNG ). My business address is 1415 Wyckoff Road, Wall, New Jersey Q. WHAT ADDITIONAL CHANGES TO THE TARIFF IS THE COMPANY PROPOSING? A. As noted in my direct testimony, Exhibit P-8, the changes to the Company s NGV Tariff provisions were pending BPU approval in Docket No. GR at the time of this base rate case filing. On November 16, 2015, the BPU approved the NGV Tariff changes effective December 1, In order to include consistent language for Service Classifications NGV and CNG with the proposed tariff language in this proceeding for Service Classification MBR, the Company is proposing the following changes. Schedule TMT-1 supplemental includes these changes in redline with gray shading: To move the recently approved Daily Balancing language applicable to Marketers from Service Classifications NGV and CNG to Service Classification MBR, Marketers and Brokers Requirements (Sheet Nos. 80, 93, 102) 1. To clarify the Daily Balancing language to reference that the Company may issue an Operational Flow Order ( OFO ) for commercial customers served under Service Classifications NGV and CNG and to establish consistency with the Daily Balancing requirements language for Service Classification FT (Sheet No. 93). To modify the penalty charge if a Marketer does not deliver the required OFO volume from the highest price of daily ranges for delivery in Texas Eastern zone M-3 ( TETCO M3 High ) to the higher of the TETCO M3 High and the Company s Replacement Cost of Gas. The penalty charges are credited to BGSS 1 Sheet numbers refer to the Tariff Sheet numbers in Schedule TMT-1 Supplemental.

8 and this change protects BGSS customers if the Company s cost to supply the Marketer s delivery shortfall is greater than the TETCO M3 High (Sheet No. 93). To modify headings to distinguish the MBR requirements for NGV Commercial and NGV Residential customers (Sheet Nos. 89, 90, 91, 92). Additionally, the Company has proposed to delete the requirement for Service Classification NGV transportation customers to be billed through Billing Option 1 where NJNG bills for both the Customer and the Marketer (Sheet No. 80). Customers can also be billed by Marketers for the Marketer s supply or both the Marketer s and the Company s charges. Finally, the Company has included a punctuation change in its definition of Replacement Cost of Gas to clarify that pipeline penalties or other charges or damages assessed on the Company would be included in the Replacement Cost of Gas regardless of the applicable price (Sheet Nos. 74, 93, 94). Q. HAS THE COMPANY UPDATED ITS PROPOSED CHANGE TO ITS BALANCING CHARGE? A. Yes. The inventory component of the Balancing Charge has been updated to reflect ten months of actual data and two months of estimates. Schedule TMT-2 Supplemental includes the Company s proposed after-tax Balancing Charge of , a per therm decrease from the current Balancing Charge of In the Company s 12+0 Update to be submitted by July 20, 2016, the inventory component of the Balancing Charge will be updated to reflect twelve months actual and the demand charge component will be updated to include costs and volumes from the Company s 2017 BGSS filing to be filed by June 1, Q. DOES THIS CONCLUDE YOUR TESTIMONY AT THIS TIME? A. Yes. I reserve my right to supplement and/or amend my testimony in the future.

9 NEW JERSEY NATURAL GAS COMPANY Exhibit TMT-1 Page 1 of 9 BPU No. 9 - Gas Original Sheet No. 74 SERVICE CLASSIFICATIONS - EGS ELECTRIC GENERATION SERVICE (continued) NEW JERSEY NATURAL GAS COMPANY Notwithstanding the above, if contemporaneously with a Delivery Shortfall, the applicable pipeline has declared a force majeure on its system curtailing primary, in-path transportation in the zone of the Company s designated delivery meter, the Company may waive the above charges and may bill the Customer for the Company s Replacement Cost of Gas (defined below) provided that the under-delivering Customer is able to demonstrate to the Company s reasonable satisfaction that the applicable pipeline transportation contract on which the Customer had scheduled deliveries to the Company during the period in which the OFO was in effect entitled the Customer to firm transportation rights through the point at which the force majeure was declared and that the applicable pipeline curtailed Customer s deliveries pro rata with deliveries to other similarly situated delivery meters on the contract. The Customer must notify the Company in writing of the anticipated Delivery Shortfall before the nomination deadline for the next North American Energy Standards Board ( NAESB ) nomination cycle. If there are no additional cycles, they must notify the Company in writing before the gas day ends. Company s Replacement Cost of Gas means the higher of (1) the Company s LNG inventory and gasification costs during the time period of the applicable pipeline force majeure event adjusted for all appropriate taxes, assessments and surcharges, (2) the prevailing market price of gas during the time period of the applicable pipeline force majeure event, or (3) the cost of gas purchased by the Company during the time period of the applicable pipeline force majeure event;, plus any pipeline penalties or other charges or damages assessed on the Company. 10. Customer Responsibility In the event the Customer designates a Marketer or Broker in accordance with Service Classification MBR, the Customer will remain responsible for a pro rata share of any charges which such Marketer or Broker fails to pay to the Company including payments for Delivery Shortfall or for balancing. 11. Marketer and Broker Requirements In the event the Customer designates a Marketer or Broker, service to the Marketer or Broker is subject to the terms and conditions of the Marketer and Broker Requirements section of this Tariff (Service Classification MBR) and Section 10 of the Company s Standard Terms and Conditions, except as modified within this Service Classification. PAYMENT Unless otherwise specified, bills are due within ten days after the Company sends the bill and is subject to a late payment charge as set forth in Paragraph 8.9 of the Standard Terms and Conditions of this Tariff. Date of Issue: Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17, 2015 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR1511

10 NEW JERSEY NATURAL GAS COMPANY Exhibit TMT-1 Page 2 of 9 BPU No Gas Original Sheet No. 8076b SERVICE CLASSIFICATION - NGV NATURAL GAS VEHICLE SERVICE (continued) 2. Billing Customers purchasing gas supply from a Marketer of Broker can only be billed through Billing Option 1 as defined in Service Classification-MBR. 3. Daily Balancing The Company reserves the right to require at any time that a Customer shall limit its takes to no more than the quantity of gas delivered to the city gate by Customer's transporters, less the adjustment for fuel use and unaccounted for gas. If a Customer takes more gas than allowed pursuant to the preceding paragraph, after notification that this daily balancing limitation is in effect, the Customer shall be charged for the excess at a rate equal to the highest price of daily ranges for delivery in Texas Eastern zone M-3 which are published in Gas Daily on the table, Daily Price Survey. This rate shall not be lower than any penalty charge incurred by the Company on the same day for unauthorized daily overruns on the interstate pipelines which deliver gas into New Jersey. There will be no daily or monthly penalties charged to the Shipper for delivering gas in excess of the daily balancing limitation specified volume. 24. Additional Requirements Service is subject to the terms and conditions of the Marketer and Broker Requirements section of this Tariff (Service Classification MBR) and Section 10 of the Company s Standard Terms and Conditions. PAYMENT Unless otherwise specified, bills are due within 10 days after the Company sends the bill and subject to a late payment charge as set forth in Paragraph 8.9 of the Standard Terms and Conditions of this Tariff. CONTRACT A written service agreement shall be required for Natural Gas Vehicle Customers. TERMS AND CONDITIONS Service is subject to the Standard Terms and Conditions of this Tariff and the service agreement. Date of Issue: November 19, 2015 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17December 1, 2015 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

11 NEW JERSEY NATURAL GAS COMPANY First Revised Sheet No. 87 BPU No Gas Superseding Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) Exhibit TMT-1 Page 3 of 9 DELIVERIES TO COMPANY S DESIGNATED DELIVERY METERCITYGATE 1. FT, and DGC-FT, CNG, NGV Commercial, and IS Service The Marketer or Broker shall use its best efforts to achieve a balance between its deliveries (net of Special Provision 3, Fuel Use and Unaccounted for Gas) and its aggregate customer requirements on a dailymonthly basis. The Company reserves the right to require a Marketer or Broker to balance deliveries and takes of transported gas. If the Marketer or Broker has an accumulated imbalance between deliveries and takes of transported gas, the Company reserves the right to reject the Marketer s or Broker s requested deliveries in whole or in part. If at any time during the month, the aggregate Marketer s or Broker's account is out of balance by more than 30%, the Marketer or Broker maywill be required, upon 2 business days 48 hours prior notice from the Company, to initiate corrective action to balance its account within the following 510-day period. Marketers or Brokers who fail to adhere to this requirement and have a positive cumulative imbalance (in aggregate the Marketer or Broker delivered more gas than was used in aggregate by its Customers), will have their subsequent nominations, on days with no Operation Flow Orders or IS Daily Balancing restrictions, rejected until they are returned to at or below a 10% imbalance. Marketers or Brokers who fail to adhere to this requirement and have a negative cumulative imbalance (in aggregate the Customers used more gas than was delivered in aggregate by the Marketer or Broker), will be charged at the delivery Shortfall Charge for the volume required to bring them to a 10% imbalance. Marketers or Brokers who fail to take corrective action to balance their account may not be permitted to continue to operate on the system. 2. IS Service The Marketer or Broker shall use its best efforts to achieve a balance between its deliveries and its aggregate customer requirements on a monthly basis. The Company reserves the right to require a Marketer or Broker to balance deliveries and takes of transported gas. The Company reserves the right to curtail IS Service at any time upon notice to the Customer(s) receiving the service. In the event the Company notifies a Customer to discontinue the use of IS service at any time, and the Customer fails to do so, the Company shall have the right to terminate service, to transfer the Customer to a firm service classification and/or to bill the Customer for usage occurring during the curtailment period at the applicable Unauthorized Use charge in effect. Date of Issue: June 4, 2012 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17June 1, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR1511 GO

12 NEW JERSEY NATURAL GAS COMPANY Exhibit TMT-1 Page 4 of 9 BPU No Gas Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) 3. RS, GSS, GSL, and DGC-Balancing Service, and NGV Residential The Marketer or Broker agrees to deliver to the Company's designated delivery metercitygate a volume of gas for each day of the month equal to the average daily usage for that month for each Customer on whose behalf it is operating as specified by the Company ( Daily Delivery Volume ). The Company will provide the Customer, and the Marketer or Broker with the minimum Daily Delivery Volumedaily delivery requirement by month in advance during the year. If the Marketer or Broker fails to deliver the Daily Delivery Volume, the Marketer or Broker will be billed at the applicable Delivery Shortfall charge in effect. In the event that, at any time, the sum of a Marketer s or Broker s cumulative imbalances, for non-force Majeure reasons and for the time period which the Company has not yet received payment (including period since last bill), are under-deliveries that exceed three (3) times the Daily Delivery Volume, the Company will notify the Marketer or Broker. If such under-deliveries exceed five (5) times the Daily Delivery Volume, the Marketer or Broker will have four (4) business days to post and maintain for a one (1) year period a cash deposit or letter of credit in an amount equal to two (2) times that otherwise required pursuant to the Conditions Precedent of this Service Classification. At the conclusion of the one (1) year period, if the Marketer or Broker has had no additional occurrence of under-deliveries, the Marketer s or Broker s credit requirement will be reduced to the amount required in the Conditions Precedent of this Service Classification. If the Marketer or Broker has had an additional under-delivery event during the one (1) year period, the Marketer or Broker will maintain the cash deposit or letter of credit in an amount equal to two (2) times that otherwise required pursuant to the Conditions Precedent of this Service Classification for an additional one (1) year period. The Company has the right to remove the Marketer or Broker from the New Jersey Natural Gas system for continued nonperformance. STANDBY GAS SERVICE Standby Gas Service is a citygate sales service provided to Marketers who have been assigned the service because they failed to deliver required daily volumes by greater than ten (10) Dth (100 therms) for more than three (3) times during a rolling twelve (12) month period. Standby Gas Service will commence with the fourth occurrence of delivery default. Marketers will be limited to use of Standby Service for a period of forty-five days within a twelve (12) month period. The Standby Gas Commodity Charge shall be the higher of (1) the LNG inventory and production costs adjusted for all appropriate taxes, assessments and surcharges, (2) the market price of gas, or (3) the actual cost of gas purchased to serve the marketer. The Marketer must nominate its gas requirements at least 24 hours in advance of the gas day (beginning at 10:00 am). The Company may attempt to provide service at times when shorter notice is given. Date of Issue: October 6, 2008 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17October 3, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

13 NEW JERSEY NATURAL GAS COMPANY First Revised Sheet No. 89 BPU No Gas Superseding Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) Exhibit TMT-1 Page 5 of 9 SPECIAL PROVISIONS (continued) SPECIAL PROVISIONS 1. Monthly Imbalances a. FT, DGC-FT, CNG, NGV Commercial, and IS Transportation Services The Marketer or BrokerCustomer shall use its best efforts to achieve a balance between its Customers deliveries and its requirements on a dailymonthly basis. Monthly iimbalances in the volumes of gas delivered for the aggregate Customers' accounts (net of Special Provision 3, Fuel Use and Unaccounted for Gas) and the volumes of gas used in the aggregate by the Customers, will be cashed-out each month so that no imbalances will be carried into the next month. The cashout will be charged to the Marketer or Broker each month. The Company will use the average weekly spot index price for New York City citygate, as published by Natural Gas Week s Major Market Prices. If the imbalance is negative (in aggregate the Customers used more gas than was delivered in aggregate by the Marketer or Broker), the Marketer or Broker will purchase gas from the Company at the rates below: Imbalance Level Calculation 0% - 5% quantity * Highest Weekly Index Price >5% - 10% quantity >5% * Highest Weekly * level above >10% - 15% quantity >10% * Highest Weekly * levels above >15% - 20% quantity >15% * Highest Weekly * levels above >20% - 25% quantity >20% * Highest Weekly * levels above >25% quantity >25% * Highest Weekly * levels above If the imbalance is positive (in aggregate the Marketer or BrokerCustomer delivered more gas than was used in aggregate by itsthe Customers), the Company will purchase gas from the Marketer or BrokerCustomer at the rates below: Imbalance Level Calculation 0% - 5% quantity * Lowest Weekly Index Price >5% - 10% quantity >5% * Lowest Weekly *.90 + level above >10% - 15% quantity >10% * Lowest Weekly *.80 + levels above >15% - 20% quantity >15% * Lowest Weekly *.70 + levels above >20% - 25% quantity >20% * Lowest Weekly *.60 + levels above >25% quantity >25% * Lowest Weekly *.50 + levels above All revenues and purchases derived from imbalances will be credited to the BGSS. Date of Issue: June 4, 2012 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17June 1, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR1511 GO

14 NEW JERSEY NATURAL GAS COMPANY First Revised Sheet No. 90 BPU No Gas Superseding Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) Exhibit TMT-1 Page 6 of 9 SPECIAL PROVISIONS (continued) b. RS, GSS, GSL, and DGC-Balancing Service, and NGV Residential 2. Daily Balancing For each Marketer or Broker, Iimbalances in the volumes of gas delivered for the Customer s account (net of Special Provision 3, Fuel Use and Unaccounted for Gas) and the volumes of gas used by the Customer, will be rolled over each month so that any imbalance will be carried into the next month. The Company will select the time period to net any imbalances with the monthly Minimum Daily Delivery Volume. If at any time during the month the Marketer s or BrokerCustomer's account is out of balance by more than 30% of the total amount transported in the prior month, the Marketer or BrokerCustomer maywill be required to modify its deliveries for the following month, upon 48 hours prior notice from the Company, to initiate corrective action to balance its account within the following 10-day period. In addition, the Company reserves the right to require additional volumes to be delivered for the following month for any volumes owed to the Company. a. FT and DGC-FT Services The Company may issue an Operational Flow Order (OFO) requiring delivery by the Marketer or Broker of at least the volume of gas the Customers, in aggregate, use on the affected gas day ( OFO Required Volume ) plus Special Provision 3, Fuel Use and Unaccounted for Gasspecified volumes of gas. An OFO may be issued as a blanket for the entire system or for a single shipper (Mmarketer, Broker, or Ccustomer). Marketers or BrokersShippers who fail to deliver the specified OFO Required Vvolumes of gas mayshall not be permitted to continue to operate on the system. In addition, the Marketer or Brokershipper will be billed at the applicable Delivery ShortfallUnauthorized Use charge in effect during the OFO period for the volume difference between the OFO rrequired Volumedelivery and the actual delivered volume. There will be no daily or monthly penalties for delivering gas in excess of an OFO Required specified vvolume. If the Marketer or Broker ends the month with a positive imbalance (in aggregate the Marketer or Broker delivered more gas than was used by its Customers), the portion of the imbalance related to overdeliveries on OFO days will be carried forward to the following month and be included in that month s cashout determination pursuant to Special Provision 1.a. of this Service Classification. If the Company issues additional OFOs in the month of the cashout determination, the Company, in its sole discretion, may waive the tiering of the cashout prices for positive imbalances greater than 5 percent initially incurred on OFO days. Date of Issue: June 4, 2012 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17June 1, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR1511 GO

15 NEW JERSEY NATURAL GAS COMPANY Exhibit TMT-1 Page 7 of 9 BPU No Gas Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) SPECIAL PROVISIONS (continued) b. CNG and NGV Commercial Services The Company may issue an Operational Flow Order (OFO) requiring delivery by the Marketer or Broker of at least the volume of gas the Customers, in aggregate, use on the affected gas day ( OFO Required Volume ) plus Special Provision 3, Fuel Use and Unaccounted for Gas. An OFO may be issued as a blanket for the entire system or for a single Marketer, Broker, or Customer. Marketers or Brokers who fail to deliver the OFO Required Volumes of gas ( Delivery Shortfall ) may not be permitted to continue to operate on the system. In addition, the Marketer or Broker will be billed at the higher of the Company s Replacement Cost of Gas (defined below) or the highest price of daily ranges for delivery in Texas Eastern zone M-3 that are published in Platts Gas Daily on the table, Daily Price Survey in effect during the OFO period for the volume difference between the OFO Required Volume and the actual delivered volume. There will be no daily or monthly penalties for delivering gas in excess of an OFO Required Volume. If the Marketer or Broker ends the month with a positive imbalance (in aggregate the Marketer or Broker delivered more gas than was used by its Customers), the portion of the imbalance related to overdeliveries on OFO days will be carried forward to the following month and be included in that month s cashout determination pursuant to Special Provision 1.a. of this Service Classification. If the Company issues additional OFOs in the month of the cashout determination, the Company, in its sole discretion, may waive the tiering of the cashout prices for positive imbalances greater than 5 percent initially incurred on OFO days. Company s Replacement Cost of Gas means the highest of (1) Company s LNG inventory and gasification costs adjusted for all appropriate taxes, assessments and surcharges, (2) the prevailing market price of gas during the OFO period, or (3) the cost of gas purchased by the Company; plus any pipeline penalties or other charges or damages assessed on the Company. cb. IS Services The Company may issue an IS Daily Balancing Restriction (IS-DB) requiring delivery by the Marketer or Broker of at least the volume of gas the Customers, in aggregate, use on the affected gas day ( IS Daily Balancing Volume ) plus Special Provision 3, Fuel Use and Unaccounted for Gas. This requirement may be issued as a blanket for the entire system or for a single Marketer, Broker, or Customer. Marketers or Brokers who fail to deliver the IS Daily Balancing Volumes of gas may not be permitted to continue to operate on the system. In addition, the Marketer or Broker will be billed at the applicable Delivery Shortfall charge in effect during the IS-DB period for the volume difference between the IS Daily Balancing Volume and the actual delivered volume. There will be no daily or monthly penalties for delivering gas in excess of an IS Daily Balancing Volume. If the Marketer or Broker ends the month with a positive imbalance (in aggregate the Marketer or Broker delivered Date of Issue: October 6, 2008 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17October 3, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

16 NEW JERSEY NATURAL GAS COMPANY First Revised Sheet No. 92 BPU No Gas Superseding Original Sheet No SERVICE CLASSIFICATIONS - MBR MARKETERS AND BROKERS REQUIREMENTS (continued) Exhibit TMT-1 Page 8 of 9 SPECIAL PROVISIONS (continued) (2) the prevailing market price of gas during the time period of the force majeure, or (3) the cost of gas purchased by the Company;, plus any pipeline penalties or other charges or damages assessed on the Company. 7. RS, GSS, GSL and DGC-Balancing Delivery Shortfalls If the Marketer or Broker fails to deliver the minimum daily volume, the Company will charge the Marketer at a rate equal to ten (10) times the highest price of daily ranges for delivery in Texas Eastern zone M-3 which are published in Gas Daily on the table, Daily Price Survey. This rate shall not be lower than the maximum penalty charge for unauthorized daily overruns as provided for in the FERC-approved gas tariffs of the interstate pipelines which deliver gas into New Jersey. The Company has the right to recovery proportionately from undelivered Marketers or Brokers any penalties or other charges or damages assessed on the Company as a result of any under-deliveries by eligible Marketers or Brokers. If the Marketer or Broker fails to deliver the minimum daily volume by greater than ten (10) Dth (100 therms) for more than three (3) days during a rolling twelve-month period, then the Marketer or Broker will be assigned Standby Gas Service at a volume equal to the highest deficiency on the days when the delivery failures occurred. Standby Gas Service will commence with the fourth occurrence of delivery default. The Marketer or Broker will pay the Standby Gas Service Charges until such time as twelve months have passed without a single failure to deliver the minimum daily volume. 8. Individual Customer Responsibility Customers taking service under Service Classifications RS, FT, GSL, GSS, DGC and IS may elect to designate one Marketer or Broker per account to have responsibility for nominations, daily balancing and/or monthly balancing on behalf of the Customer. The Company will provide both individual and summary bills to each such Marketer or Broker, with a summary of usage and associated charges provided for each Customer. If a Customer s designated Marketer or Broker should default on any obligation for payment under this Service Classification, the Customer will be responsible for its proportional share of charges, including payment for unauthorized usage or for monthly imbalances. Date of Issue: June 4, 2012 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17June 1, Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR1511 GO

17 NEW JERSEY NATURAL GAS COMPANY Exhibit TMT-1 Page 9 of 9 BPU No Gas Original Sheet No SERVICE CLASSIFICATIONS - CNG COMPRESSED NATURAL GAS (Continued) II. Applicable to All Customers Purchasing Gas Supply from a Marketer or Broker 1. Customer Responsibility The Customer must provide to the Company's satisfaction a firm gas supply having marketable title of gas with firm transportation capacity to the Company's distribution system. In the event the Customer designates a Marketer or Broker in accordance with Service Classification MBR, the Customer will remain responsible for a pro rata share of any Charges which such Marketer or Broker fails to pay to the Company including payments for Delivery ShortfallUnauthorized Use or for Monthly Imbalance. 2. Billing Customers purchasing gas supply from a Marketer of Broker can only be billed through Billing Option 1 as defined in Service Classification-MBR. 3. Daily Balancing The Company reserves the right to require at any time that a Customer shall limit its takes to no more than the quantity of gas delivered to the city gate by Customer's transporters, less the adjustment for fuel use and unaccounted for gas. If a Customer takes more gas than allowed pursuant to the preceding paragraph, after notification that this daily balancing limitation is in effect, the Customer shall be charged for the excess at a rate equal to the highest price of daily ranges for delivery in Texas Eastern zone M-3 which are published in Gas Daily on the table, Daily Price Survey. This rate shall not be lower than any penalty charge incurred by the Company on the same day for unauthorized daily overruns on the interstate pipelines which deliver gas into New Jersey. There will be no daily or monthly penalties charged to the Shipper for delivering gas in excess of the daily balancing limitation specified volume. 3. Additional Requirements Service is subject to the terms and conditions of the Marketer and Broker Requirements section of this Tariff (Service Classification MBR) and Section 10 of the Company s Standard Terms and Conditions. PAYMENT Bills are due within 10 days after the Company sends the bill and is subject to a late payment charge as set forth in Paragraph 8.9 of the Standard Terms and Conditions of this Tariff. CONTRACT A written agreement shall be required for Compressed Natural Gas Host Customers and non-host Customers Fleets. TERMS AND CONDITIONS Service is subject to the Company's Standard Terms and Conditions of this Tariff. Date of Issue: November 19, 2015 Effective for service rendered on Issued by: Mark R. Sperduto, Senior Vice President and after December 17December 1, 2015 Wall, NJ Filed pursuant to Order of the Board of Public Utilities entered in Docket No. GR

18 Exhibit TMT-2 Page 1 of 1 New Jersey Natural Gas Company Calculation of Balancing Charge 000 Balancing Charge related to Inventory 12 month Average inventory balance (TETCO and Steckman Ridge storages and LNG) 28,837 Rate of Return 11.81% Storage Carrying Costs 3,406 % of Peak Related to Balancing 53.2% Balancing 1,813 Annual Firm Therms (excluding FT) (000) 647,752 Pre-tax Balancing Charge Balancing Charge related to Demand Charges 2 Pipeline Demand Charges 114,047 Adjustments (BGSS Incentive Credits) (42,036) Total 72,011 % of Peak Related to Balancing 53.2% Balancing 38,335 Annual Firm Therms (000) 647,237 Pre-tax Balancing Charge Total Balancing Charge Pre-tax Balancing Charge related to Inventory Pre-tax Balancing Charge related to Demand Charges Total Pre-tax Balancing Charge Total After-tax Balancing Charge Current After-tax Balancing Charge Increase/(Decrease) to After-tax Balancing Charge (0.0016) Calculation of % of Peak Related to Balancing 000 therms Peak Day Therms 8,851 Average Therms on a January Day 4,139 Balancing Therms 4,712 % of Peak 53.2% 1 2 In accordance with the Board's October 3, 2008 Order in BPU Docket no. GR , the Balancing Charge related to Inventory is updated in a base rate case. The Balancing Charge related to Demand Charges is updated in the Company's annual BGSS filing and the above component reflects costs and therms from the Company's 2016 BGSS filing in BPU Docket No. GR In the Company's 12+0 Update to be submitted by July 20, 2016, costs and therms will be updated to include costs and volumes from the Company's 2017 BGSS filing to be filed by June 1, 2016.

19 Exhibit P-3 R-1 NEW JERSEY NATURAL GAS COMPANY REVISED DIRECT TESTIMONY OF JAMES M. CORCORAN MANAGER REVENUE REQUIREMENTS Q. PLEASE STATE YOUR NAME, AFFILIATION AND BUSINESS ADDRESS. A. My name is James M. Corcoran and I am the Manager Revenue Requirements for New Jersey Natural Gas Company ( NJNG or Company ). My business address is 1415 Wyckoff Road, Wall, New Jersey Q. PLEASE DESCRIBE YOUR EDUCATION AND EXPERIENCE. A. As Manager - Revenue Requirements, I perform the calculation of revenue requirements for NJNG s base rates as well as cost recovery riders. I received a Bachelor of Science degree in Accounting from Seton Hall University. In May 2010, I received a Master s of Business Administration - Finance from Seton Hall University. I was employed by the State of New Jersey Board of Public Utilities ( BPU or Board ) beginning in July 1986 as an Accountant-Trainee and over a twenty-year career moved into various Analyst positions of increased responsibility. In March 2007, I accepted a Senior Regulatory Analyst position at Public Service Electric and Gas Company with responsibilities that included preparing the requisite testimony and financial schedules for various rate recovery mechanisms. In August 2007, I was promoted to the position of Principal Staff Regulatory Analyst and, in August 2011, I was promoted to the position of Revenue Requirements Manager. I joined the Company in July 2014 as the Manager Revenue Requirements. My responsibilities include supporting the Regulatory Affairs department with the preparation of testimony regarding all rate recovery matters. I also participate on behalf of NJNG in the New Jersey Resources financial reporting committee.

20 Q. HAVE YOU PREVIOUSLY TESTIFIED IN REGULATORY PROCEEDINGS? A. Yes. I have submitted Direct Testimony before the Board in NJNG s NJ Reinvestment in System Enhancement ( NJ RISE ) cost recovery petition (BPU Docket No. GR ). In addition, I have provided testimony on behalf of PSEG Power, LLC in a rate matter proceeding before the Connecticut Public Utilities Regulatory Authority in PURA Docket No Q. PLEASE SUMMARIZE THE PURPOSE OF YOUR REVISED DIRECT TESTIMONY. A. On November 13, 2015, I filed Direct Testimony and associated financial schedules in support of NJNG s rate relief request utilizing three (3) months of actual data and nine (9) months of forecasted data for the test year ending June 30, 2016 and related post-test year adjustments through and including December 31, In this revision, I have updated the financial information for ten (10) months of actual data and two (2) months of forecasted data for the test year and revised the associated post-test year adjustments, where necessary. I would also note that on May 4, 2016, I filed Supplemental Testimony and a revised Schedule JMC 38 - SUPPLEMNTAL. This supplemental information is incorporated within this Revised Direct Testimony. Schedule JMC-1 R-1 shows the operating income required to provide a just and reasonable return on NJNG s rate base, the pro-forma operating income for the test period, and the additional revenue necessary to satisfy the operating income requirement. Schedule JMC-2 R-1 summarizes NJNG s Rate Base, and Schedule JMC-12 R-1 reflects Pro Forma Operating Income as of June 30, 2016, on a 10- month actual and 2-month estimated basis. The Revenue Factor is presented on Schedule JMC-4 R-1. The individual amounts shown on these Schedules are further supported by NJNG s accounting records and its operating and capital budgets for the period ending June 30, The books and records of NJNG are maintained in accordance with the Uniform System of Accounts prescribed by the Board and the Federal Energy Regulatory Commission ( FERC ).

21 The balance of my testimony supports the Rate Base, Operating Income, and the pro-forma adjustments necessary for the period ending June 30, The additional revenue of million requested in this case, as calculated on Schedule JMC-1 R-1, is needed to provide NJNG the opportunity to recover operating revenues through base tariff rates sufficient to meet operating expenses, taxes and fixed charges, and to provide a reasonable return on its Rate Base investments. Schedules JMC-22 R-1 through JMC-41 R-1 provides the pro-forma adjustments and the detail of Operating Income, which I discuss later in my testimony. Q. PLEASE DESCRIBE THE SERVICE COMPANY AND ITS ROLE IN PROVIDING SERVICE TO NJNG. A. The New Jersey Resources Service Company ( Service Company ) provides corporate services that include accounting, human resources, treasury, information technology and legal to NJNG. All costs and services are provided on a fully allocated cost basis. The Service Company allocates its labor to NJNG based on direct time sheet reporting and expenses based on actual monthly costs or assigned costs using various allocation methods (headcount, hours of use, etc.). On a quarterly basis, actual data is used to true-up all allocations to ensure a proper matching is recorded by NJNG to properly assign costs based on a cost causation concept. It is the practice of the Service Company to directly charge its costs whenever possible and use an allocation methodology when a non-direct cost is incurred. Q. PLEASE PROVIDE AN OVERVIEW OF THE NJNG RATE CASE PETITION. A. NJNG s last base rate case decision was approved by the BPU in an Order dated October 3, 2008 (Docket No. GR ). Since that time, the Company has continued to provide safe, reliable and high-quality service to its customers, and is committed to providing the same in the future.

22 The Company is requesting an increase in its base rate revenues of million based on the test year ending June 30, 2016, with known and measurable changes through December 31, Financial integrity and strength are key components to the Company s ability to employ the necessary capital and to cover the operating expenses necessary to maintain and improve its distribution and transmission systems, and to continue to provide safe, reliable and high-quality service to approximately 520,000 residential and commercial customers in our service territory. The health and safety of our employees and customers is our number one priority, and maintaining a strong financial position in the marketplace is a necessary ingredient to accomplishing this goal. Q. WHAT TEST PERIOD IS NJNG USING TO SUPPORT ITS BASE RATE CASE REQUEST? A. The test period in this base rate case proceeding is the 12-month period ending June 30, This revised filing consists of 10 months actual data ending April 30, 2016 and 2 months estimated data through June 30, It should be noted that the Safety Acceleration And Facility Enhancement ( SAFE ) Program Order 1 directed the Company to file its initial base rate case filing with three months of actual data and nine months of projected data for the test year to be updated over the course of the proceeding for twelve months of actual data. See SAFE Order at p. 6. Further, the Company believes that the use of partially forecasted data is appropriate. Assuming the BPU exercises the two statutory suspension periods to review and process the base rate case Petition, the test year as adjusted will therefore be more representative of the Company s investment and operating expenses when rates are reviewed and approved by the Board. 1 In The Matter of The Petition of New Jersey Natural Gas Company For Approval of the Safety Acceleration And Facility Enhancement Program Pursuant To N.J.S.A. 48:2-23, And For Approval of The Associated Recovery Mechanism Pursuant To N.J.S.A. 48:2-21 and , BPU Docket No. GO (October 23, 2012) ( SAFE Order )

23 Q. PLEASE DESCRIBE THE NJNG RATE BASE SCHEDULE JMC-2 R-1. A. Schedule JMC-2 R-1 presents total Rate Base at June 30, 2016 of 1.40 billion. The NJNG Rate Base consists of the utility s investment in natural gas plant, net of accumulated depreciation of utility plant; natural gas commodity in storage and LNG inventory, materials and supplies, prepayments and cash working capital; offset by customer advances and accumulated deferred income taxes. I will now address each individual component of the Company s Revenue Requirement. Q. PLEASE DESCRIBE THE WEIGHTED AVERAGE COST OF CAPITAL SCHEDULE JMC-3 R-1. A. Schedule JMC-3 R-1 provides NJNG s capital structure components and their respective embedded cost rates to calculate the requested weighted average cost of capital ( WACC ) to establish the proper operating income requirement. The Direct Testimony of Mr. Paul R. Moul supports the capital structure, the long term debt cost rates and the return on common equity utilized in the weighted average cost of capital. Q. PLEASE EXPLAIN THE REVENUE FACTOR SCHEDULE JMC-4 R-1. A. The revenue factor utilized by the Company in this proceeding is The factor includes State of New Jersey Corporate Business Tax, Federal Income Tax, the Assessments for the Board and Rate Counsel and Uncollectibles. Q. PLEASE EXPLAIN THE NJNG UTILITY PLANT IN SERVICE SCHEDULE JMC-5 R-1 AND SCHEDULE JMC-6 R-1. A. The NJNG utility plant in service, as shown on Schedule JMC-5 R-1, is 2.08 billion at June 30, Since October 2008, plant in service has increased by approximately 798 million. This growth is, in substantial part, attributable to investment in Board approved infrastructure programs for distribution and transmission mains and services, as well as safety and reliability upgrades in the Company s service territory over the last 8 plus years. Distribution and transmission plant investments, as well as investments in the Company s LNG facilities, are