This has only happened twice before but that's enough to concern me. I put gas in it and the fuel level doesn't change. Turn the key off and on real quick and all is well. THEN I'm sitting at a stop light and the guage pegs on E for a sec then returns to normal. A few minutes later and it does the same thing. Nothing else electrical stops working during this time and like I said, it's only happened twice and it was a few months between happenings. It's a 97 btw for those of you on your phones. Any ideas anyone?

Sounds like it could be an intermittent electrical connection from the fuel level sending unit of the fuel pump assembly (located in the gas tank)

+1 You might first try to check the plug connection at the top of your gas tank from the fuel pump/level sensor which is inside the tank. A bit tough to get at, but if you just have a little corroded or loose pin maybe that could be cured just by re-connecting.

I have a 97 that I bought brand new. A few years after I bought it, Jeep had a recall on the airbag and the fuel gauge sensor in the fuel tank. I would call a Jeep dealer and ask exactly what they did back then. I had the same problems with the gauge until they fixed it.
Hope that helps.

I tried wiggling the plug but who's to say that didn't fix it. I'll take it to the dealership tomorrow and see if it has been fixed yet. Thanks for the help guys