/PRNewswire/ -- With gasoline and diesel pump prices in Georgia hovering in the $4.00 range, Atlanta Gas Light (AGL) today (May 12) filed a plan with the Georgia Public Service Commission (PSC) to build a network of Compressed Natural Gas (CNG) fueling stations over the next five years in the metropolitan Atlanta region and along major transportation corridors in the state. The plan also includes low-cost equipment leasing options for home fueling stations. CNG retail prices are over a third less than that of petroleum - $2.19 per gallon of gas equivalent – as currently posted at Georgia retailers.
"Demand for CNG is growing in the United States, and Atlanta Gas Light is committed to attracting interest in this important new investment opportunity to Georgia," said Ian Skelton, director of Atlanta Gas Light's natural gas vehicle program. "Natural gas is abundant and clean, and the U.S. is estimated to have a one hundred year supply that is readily deliverable to Georgia. Fleet owners and vehicle manufacturers are beginning to recognize the significant price advantage CNG holds over petroleum at the pump and, as a result, demand for CNG should increase. Making CNG stations more prevalent and accessible makes sense for Georgia, for businesses and for consumers."
Under the plan to be considered by the PSC later this summer, AGL proposes to invest nearly $12 million dollars to stimulate private investment in the construction of approximately 10 to 15 fueling stations, depending on the size of the station and the level of private investment. The stations would be owned and operated by private retailers who must invest approximately 50 percent of the cost of the CNG station. Retailers would purchase natural gas from certificated marketers and resell it as CNG to the public. The initial station locations will be largely determined based on proximity to commercial fleet customers who contract for service.
The capital used to seed the market would be expended from the Universal Service Fund, which is funded from rates paid by industrial customers and proceeds shared by energy asset management firms. AGL annually requests funds from the USF for line extensions to serve new customers and new regions of the state. The recessed economy has stalled line extensions that normally would come with growth, leaving a temporary surplus in the fund that can be used to foster CNG growth.
Atlanta Gas Light will not sell CNG to the public nor participate in the commercial operation of the stations as part of this program. AGL will own and maintain the CNG equipment connected to its traditional natural gas distribution system, enabling USF dollars to be used to construct the CNG facilities. Atlanta Gas Light will collect transportation delivery charges and actual costs associated with operations and maintenance from retailers. Revenue collected from a separate equipment utilization fee will be placed in a reserve account to fund a portion of the cost of leasing home refueling stations, erecting additional CNG facilities, and making repairs and replacing the CNG equipment.
In order to qualify for funding, applicants must demonstrate financial resources sufficient to secure the real estate for the station, develop the site consistent with local zoning, fund at least 50 percent of the total CNG station costs, and produce contracts with fleet or end use customers that utilize no less than 15,000 gas equivalent gallons per year for five years. The 50 percent match requirement is reduced to 20 percent after the first year if there are sufficient funds remaining.
The plan is the product of months of market studies and public hearings followed by legislative action. After filing a conceptual plan last September at the urging of PSC Commissioner Doug Everett, two public hearings were held in November 2010 and January 2011 to refine the plan. In March, the Georgia General Assembly gave express authorization for USF funds to be utilized for natural gas fueling infrastructure for motor vehicles.
Construction and maintenance of CNG facilities is not new to Atlanta Gas Light. The company installed its first CNG pumps at a public station in downtown Atlanta in the early 1990's. In 1996, AGL began its service to MARTA (Metropolitan Atlanta Rapid Transit Authority) when the transportation agency converted its bus fleet to CNG in advance of Atlanta hosting the Summer Olympics. Currently, the company owns equipment located at 10 CNG stations operated by private fleets and located on customer-owned premises, including municipal transit agencies, and has installed numerous others. The company also provides maintenance services to about 40 additional fleet customers who own their own CNG stations.
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Showing posts with label AGL. Show all posts
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Monday, May 16, 2011
Monday, May 3, 2010
Atlanta Gas Light Files First Rate Case in Five Years
/PRNewswire/ -- Facing higher operating expenses and declining revenue in a stubborn economy, Atlanta Gas Light today filed an application with the Georgia Public Service Commission (PSC) requesting a monthly increase in base rates of $2.95 for residential customers.
In its first rate case filing in more than five years, Atlanta Gas Light attributes the primary need for the increase to higher compliance and operating costs, including employee expenses and declining customer growth. If granted, it would be the first base rate increase for Atlanta Gas Light since 1993. Revenues from base rates are what the utility uses to provide its core services. Even with the proposed increase, company forecasts indicate revenues collected from customers in 2010-2011 would be lower than the company received in 2005.
For the first time in company history, Atlanta Gas Light has lost more customers than it has added for two consecutive years. In 2009 alone, Atlanta Gas Light experienced a net loss of over 8,000 customers from the system. The impact of a slower rate of new customer additions and higher customer attrition means the fixed costs of the utility are spread over fewer customers, which contributes to the upward pressure on rates.
"Over the past five years, we have taken aggressive steps to control costs and manage our utility expenses," said Suzanne Sitherwood, president, Atlanta Gas Light. "This rate adjustment is necessary to maintain appropriate service levels, to invest in vital programs that will make us more efficient, and to improve our ability to meet our customer needs. We deferred this necessary step as long as we could."
A portion of the increase would support Atlanta Gas Light's ongoing five-year business plan presented in the application. Called "Customer First," the plan includes customer service initiatives such as:
-- Automated Meter Reading Technology, which will equip radio technology
to hundreds of thousands of meters and is expected to improve
efficiency and accuracy and provide real-time consumption data;
-- Re-establishing the Customer Call Center in Atlanta, bringing
approximately 74 jobs to Riverdale, Ga., to better handle customer
care;
-- Improved Technology Systems, intended to provide quicker response
times for marketer and customer services and improved web features for
customer scheduling and personal consumption statistics;
-- Service Call Courtesies and Repair/Replace Vouchers, enabling utility
technicians during service calls to perform minor repairs or leave
behind repair or replacement vouchers for ENERGY STAR appliances. This
program is expected to help avoid service interruption, improve safety
and retain customers on the natural gas system, which keeps costs down
for all ratepayers; and
-- Increased Service Availability, intended to improve response time and
shorten customer wait time for the company to complete orders.
Atlanta Gas Light has included a proposal expected to help hold down future operating expenses by adopting a policy to require the company to share 50 percent of the cost savings resulting from future acquisitions with Atlanta Gas Light customers through lower operating expenses. Two recent acquisitions in Virginia and New Jersey have produced more than $100 million in cost savings since 2005, benefiting residential and commercial Atlanta Gas Light customers.
"A formal policy requiring that Atlanta Gas Light customers receive fifty percent of the cost savings from future acquisitions is the right thing to do," said Hank Linginfelter, executive vice president, AGL Resources. "We have reduced overall corporate service expenses shouldered by Atlanta Gas Light's customers from 90 percent to 48 percent through our most recent transactions, and we are now able to provide shared corporate services at one of the lowest rates in the country among major gas utilities."
The company's rate proposal is expected to increase the average annual residential natural gas bill by about 3 percent. If granted, the new rates would be expected to generate about $54 million annually. The new revenue would support ongoing operations and reset the company's return on equity ($18.5 million), fund new customer service initiatives ($13.4 million), collect a portion of savings from mergers benefiting Atlanta Gas Light customers ($14.5 million), and restructure depreciation expenses ($7.7 million). The changes would go into effect in November 2010 and would be reflected in Atlanta Gas Light's base rate charge assessed to customers by their certificated gas marketer.
The PSC will hold public hearings on the company's application beginning in August and will evaluate the case under its legal obligation to balance the need for the consumer to receive reliable services at reasonable rates with the need to provide the utility with the opportunity to earn a reasonable return on its investment.
About Atlanta Gas Light
Atlanta Gas Light, a wholly owned subsidiary of AGL Resources (NYSE:AGL) , provides natural gas delivery service to more than 1.5 million customers in Georgia. In operation since 1856, the company is one of the oldest corporations in the state. For more information, visit www.atlantagaslight.com.
About AGL Resources
AGL Resources (NYSE:AGL) , an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.
Forward-Looking Statements
Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements. Forward - looking statements involve matters that are not historical facts and because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements in this press release include, without limitation, the expected revenues to be collected from Atlanta Gas Light customers in 2010-2011; including the underlying components , such as forecasted declining revenues, higher operating expenses and the sharing of cost savings from future acquisitions, driving the proposed higher base rates \, and the projected operational, customer and other benefits from the results of the "Customer First" five-year business plan and related initiatives; and future operating expenses related to future acquisitions.
Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors - many beyond our control - that could cause results to differ significantly from our expectations.
Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal legislation and regulation including changes related to climate change; actions taken by government agencies on rates and other matters; utility and energy industry consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, and unexpected change in project costs, including the cost of funds to finance these projects; direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit ratings or the credit ratings of our counterparties or competitors; interest rate fluctuations; financial market conditions, including recent disruptions in the capital markets and lending environment and the current economic downturn; the impact of natural disasters such as hurricanes on the supply and price of natural gas; acts of war or terrorism; and other factors which are described in detail in our filings with the Securities and Exchange Commission, which we incorporate by reference in this press release. Forward-looking statements are only as of the date they are made, and we do not undertake to update these statements to reflect subsequent changes.
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In its first rate case filing in more than five years, Atlanta Gas Light attributes the primary need for the increase to higher compliance and operating costs, including employee expenses and declining customer growth. If granted, it would be the first base rate increase for Atlanta Gas Light since 1993. Revenues from base rates are what the utility uses to provide its core services. Even with the proposed increase, company forecasts indicate revenues collected from customers in 2010-2011 would be lower than the company received in 2005.
For the first time in company history, Atlanta Gas Light has lost more customers than it has added for two consecutive years. In 2009 alone, Atlanta Gas Light experienced a net loss of over 8,000 customers from the system. The impact of a slower rate of new customer additions and higher customer attrition means the fixed costs of the utility are spread over fewer customers, which contributes to the upward pressure on rates.
"Over the past five years, we have taken aggressive steps to control costs and manage our utility expenses," said Suzanne Sitherwood, president, Atlanta Gas Light. "This rate adjustment is necessary to maintain appropriate service levels, to invest in vital programs that will make us more efficient, and to improve our ability to meet our customer needs. We deferred this necessary step as long as we could."
A portion of the increase would support Atlanta Gas Light's ongoing five-year business plan presented in the application. Called "Customer First," the plan includes customer service initiatives such as:
-- Automated Meter Reading Technology, which will equip radio technology
to hundreds of thousands of meters and is expected to improve
efficiency and accuracy and provide real-time consumption data;
-- Re-establishing the Customer Call Center in Atlanta, bringing
approximately 74 jobs to Riverdale, Ga., to better handle customer
care;
-- Improved Technology Systems, intended to provide quicker response
times for marketer and customer services and improved web features for
customer scheduling and personal consumption statistics;
-- Service Call Courtesies and Repair/Replace Vouchers, enabling utility
technicians during service calls to perform minor repairs or leave
behind repair or replacement vouchers for ENERGY STAR appliances. This
program is expected to help avoid service interruption, improve safety
and retain customers on the natural gas system, which keeps costs down
for all ratepayers; and
-- Increased Service Availability, intended to improve response time and
shorten customer wait time for the company to complete orders.
Atlanta Gas Light has included a proposal expected to help hold down future operating expenses by adopting a policy to require the company to share 50 percent of the cost savings resulting from future acquisitions with Atlanta Gas Light customers through lower operating expenses. Two recent acquisitions in Virginia and New Jersey have produced more than $100 million in cost savings since 2005, benefiting residential and commercial Atlanta Gas Light customers.
"A formal policy requiring that Atlanta Gas Light customers receive fifty percent of the cost savings from future acquisitions is the right thing to do," said Hank Linginfelter, executive vice president, AGL Resources. "We have reduced overall corporate service expenses shouldered by Atlanta Gas Light's customers from 90 percent to 48 percent through our most recent transactions, and we are now able to provide shared corporate services at one of the lowest rates in the country among major gas utilities."
The company's rate proposal is expected to increase the average annual residential natural gas bill by about 3 percent. If granted, the new rates would be expected to generate about $54 million annually. The new revenue would support ongoing operations and reset the company's return on equity ($18.5 million), fund new customer service initiatives ($13.4 million), collect a portion of savings from mergers benefiting Atlanta Gas Light customers ($14.5 million), and restructure depreciation expenses ($7.7 million). The changes would go into effect in November 2010 and would be reflected in Atlanta Gas Light's base rate charge assessed to customers by their certificated gas marketer.
The PSC will hold public hearings on the company's application beginning in August and will evaluate the case under its legal obligation to balance the need for the consumer to receive reliable services at reasonable rates with the need to provide the utility with the opportunity to earn a reasonable return on its investment.
About Atlanta Gas Light
Atlanta Gas Light, a wholly owned subsidiary of AGL Resources (NYSE:AGL) , provides natural gas delivery service to more than 1.5 million customers in Georgia. In operation since 1856, the company is one of the oldest corporations in the state. For more information, visit www.atlantagaslight.com.
About AGL Resources
AGL Resources (NYSE:AGL) , an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.
Forward-Looking Statements
Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements. Forward - looking statements involve matters that are not historical facts and because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements in this press release include, without limitation, the expected revenues to be collected from Atlanta Gas Light customers in 2010-2011; including the underlying components , such as forecasted declining revenues, higher operating expenses and the sharing of cost savings from future acquisitions, driving the proposed higher base rates \, and the projected operational, customer and other benefits from the results of the "Customer First" five-year business plan and related initiatives; and future operating expenses related to future acquisitions.
Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors - many beyond our control - that could cause results to differ significantly from our expectations.
Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal legislation and regulation including changes related to climate change; actions taken by government agencies on rates and other matters; utility and energy industry consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, and unexpected change in project costs, including the cost of funds to finance these projects; direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit ratings or the credit ratings of our counterparties or competitors; interest rate fluctuations; financial market conditions, including recent disruptions in the capital markets and lending environment and the current economic downturn; the impact of natural disasters such as hurricanes on the supply and price of natural gas; acts of war or terrorism; and other factors which are described in detail in our filings with the Securities and Exchange Commission, which we incorporate by reference in this press release. Forward-looking statements are only as of the date they are made, and we do not undertake to update these statements to reflect subsequent changes.
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Tuesday, January 12, 2010
AGL Resources Sets New Company Record for Peak-Day Gas Delivery
/PRNewswire/ -- AGL Resources (NYSE:AGL) today (January 11) announced that its six distribution companies have helped customers weather the cold temperatures dominating the East Coast by breaking the company record for peak-day natural gas delivery twice during the past week.
On Jan. 8, the company delivered 3,078,064 dekatherms of natural gas to customers within AGL Resources' footprint, which stretches from New Jersey to Florida. The company operates Atlanta Gas Light in Georgia, Chattanooga Gas in Tennessee, Elizabethtown Gas in New Jersey, Elkton Gas in Maryland, Florida City Gas in Florida and Virginia Natural Gas in Virginia.
The new record enabled AGL Resources to surpass the 3 million dekatherm mark for the first time in the company's 154-year history. The company's previous peak-day delivery record was set just five days earlier. On Jan. 3, AGL Resources provided customers with 2,926,099 dekatherms of natural gas.
"This has been an exceptional cold snap for the eastern United States, and I am proud that our local distribution companies have responded by ensuring that our customers have had the natural gas they needed to stay warm and safe," said Hank Linginfelter, executive vice president of Utility Operations.
"The ability of natural gas to meet the needs of millions of customers during this demanding period is even more impressive when you consider that it is the cleanest-burning fossil fuel and that we have more than 100 years of proven reserves in North America," Linginfelter said. "When you add it all up, natural gas is unsurpassed when it comes to a safe and reliable energy source that is environmentally friendly and domestically abundant."
During the first eight days of 2010, AGL Resources' Gas Control organization managed the safe and efficient delivery of more than 21.5 million dekatherms of natural gas to customers in six states.
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On Jan. 8, the company delivered 3,078,064 dekatherms of natural gas to customers within AGL Resources' footprint, which stretches from New Jersey to Florida. The company operates Atlanta Gas Light in Georgia, Chattanooga Gas in Tennessee, Elizabethtown Gas in New Jersey, Elkton Gas in Maryland, Florida City Gas in Florida and Virginia Natural Gas in Virginia.
The new record enabled AGL Resources to surpass the 3 million dekatherm mark for the first time in the company's 154-year history. The company's previous peak-day delivery record was set just five days earlier. On Jan. 3, AGL Resources provided customers with 2,926,099 dekatherms of natural gas.
"This has been an exceptional cold snap for the eastern United States, and I am proud that our local distribution companies have responded by ensuring that our customers have had the natural gas they needed to stay warm and safe," said Hank Linginfelter, executive vice president of Utility Operations.
"The ability of natural gas to meet the needs of millions of customers during this demanding period is even more impressive when you consider that it is the cleanest-burning fossil fuel and that we have more than 100 years of proven reserves in North America," Linginfelter said. "When you add it all up, natural gas is unsurpassed when it comes to a safe and reliable energy source that is environmentally friendly and domestically abundant."
During the first eight days of 2010, AGL Resources' Gas Control organization managed the safe and efficient delivery of more than 21.5 million dekatherms of natural gas to customers in six states.
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Wednesday, January 7, 2009
Global Energy Systems Signs Subcontractor Agreement with Georgia Utility
(BUSINESS WIRE)--Global Energy Systems, a subsidiary of the diversified renewable energy company Global Energy Holdings Group, Inc. (NYSE Alternext US: GNH), today announced it has signed a subcontractor agreement with AGL Services Company, a subsidiary of AGL Resources, the parent company of six natural gas utilities including Atlanta Gas Light. Under the terms of the agreement, Global Energy will develop a variety of services involving energy conservation measures at Atlanta Gas Light’s customer owned facilities.
“This agreement with AGL Resources opens up a number of opportunities for Global Energy in the stable gas utility market,” said Mike Ellis, President of Global Energy Systems. “We are committed to developing energy conservation initiatives and providing alternative energy to AGL Resources’ customers.”
Atlanta Gas Light serves more than 1.5 million residential, commercial, industrial and governmental customers in 243 communities throughout Georgia. Global Energy will institute conservation measures to reduce energy consumption and increase energy efficiency at Atlanta Gas Light’s service locations. Global Energy Systems will also identify and market energy management services to U.S. Government facilities affiliated with AGL Resources and Atlanta Gas Light. The subcontractor agreement runs through November 2011.
“AGL Resources is looking forward to working with Global Energy in our efforts to reduce our environmental impact and expand our renewable energy offerings,” said Donna Peeples, Chief Marketing Officer, AGL Resources.
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“This agreement with AGL Resources opens up a number of opportunities for Global Energy in the stable gas utility market,” said Mike Ellis, President of Global Energy Systems. “We are committed to developing energy conservation initiatives and providing alternative energy to AGL Resources’ customers.”
Atlanta Gas Light serves more than 1.5 million residential, commercial, industrial and governmental customers in 243 communities throughout Georgia. Global Energy will institute conservation measures to reduce energy consumption and increase energy efficiency at Atlanta Gas Light’s service locations. Global Energy Systems will also identify and market energy management services to U.S. Government facilities affiliated with AGL Resources and Atlanta Gas Light. The subcontractor agreement runs through November 2011.
“AGL Resources is looking forward to working with Global Energy in our efforts to reduce our environmental impact and expand our renewable energy offerings,” said Donna Peeples, Chief Marketing Officer, AGL Resources.
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