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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Atlanta Gas Light STRIDES Forward with Pilot Program Designed to Encourage Economic Growth

/PRNewswire/ -- Atlanta Gas Light received approval from the Georgia Public Service Commission (PSC) today on a new program designed to encourage economic growth and spur the addition of new customers under the Georgia Strategic Infrastructure Development and Enhancement Program or (STRIDE). The new program will not increase monthly rates to consumers, but instead will be collected through the existing STRIDE surcharge for an additional three years.

The program, known as the Integrated Customer Growth Program or i-CGP, will allow Atlanta Gas Light to invest up to $45 million to extend its pipeline facilities to serve customers without pipeline access. The new program will also allow Atlanta Gas Light to install pipelines to create new economic development corridors in order to help spur growth.

The new line extension program under i-CGP is available for both residential and commercial customers. Currently many customers that want natural gas service and who are not located near an existing pipeline are required to make a cash payment to have service established. This has been a significant disincentive, particularly under the current economic conditions. The i-CGP program will reduce or eliminate this requirement for many potential customers.

The new strategic corridor development program will allow Atlanta Gas Light to make major investments to extend its gas distribution facilities to areas where growth is forecasted, or to locations where existing development does not have access to natural gas. This will be a new resource that will allow Atlanta Gas Light to work with state and local economic development officials to attract new business, with the potential of bringing jobs to Georgia.

"The Georgia Public Service Commission has given Atlanta Gas Light a new regulatory framework to restore growth on our system and help keep the pressure to increase rates down," said Suzanne Sitherwood, president, Atlanta Gas Light. "It also allows us to be a partner to spur economic development in more communities throughout the state where natural gas service is not presently available."

To avoid an increase in monthly rates due to the program, i-CGP will extend the duration of the STRIDE program by three years.

Atlanta Gas Light received approval from the PSC for its STRIDE program in October. STRIDE will install new pipeline and liquefied natural gas facilities throughout metro Atlanta to improve system reliability and operational performance on peak demand days. The first three year construction program of $175.7 million is underway and should be completed by 2012.

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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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Cooler Weather Brings Heating Decisions -- Public Service Web Site Helps Georgia Consumers Compare and Save on Natural Gas

/PRNewswire/ -- If cold weather hits Georgia as quickly as the flooding rains, consumers will be scrambling to choose a natural gas marketer and price plan that's right for them. Luckily for Georgians, MyNaturalGasCoach.com is a free public service web site to help shop and save on natural gas before the colder weather arrives.

Georgians who live in the Atlanta Gas Light service territory can go to MyNaturalGasCoach.com for information about natural gas marketers and their rates to help make an informed decision and save money when choosing a natural gas marketer. The interactive site helps "coach" consumers with information all on one site, including the following:

-- A convenient list of Georgia's natural gas marketers, plus toll-free
numbers and links to their web sites for price comparison
-- An explanation of variable and fixed price plan options and how
service fees affect your natural gas bill
-- How to read and understand your natural gas bill

It's about choice and saving money. It's important that the consumer know there are options," said Bill Edge, public information officer for the Georgia Public Service Commission. "MyNaturalGasCoach.com is a great source to help everyone learn more about their options in terms of choosing a natural gas marketer."

Consumers can go to the site and take an online "Natural Gas Fitness Test" between now and November 23, 2009, and be automatically entered into the My Natural Gas Coach Sweepstakes to win four tickets to the New Year's Eve Chick-fil-A Football Bowl Game, accommodations at the Buckhead Intercontinental Hotel and a limo for the evening.

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Georgia PSC Approves Investment Program for Atlanta Gas Light to Promote Job Growth and Cleaner Air

/PRNewswire-FirstCall/ -- The Georgia Public Service Commission (PSC) today unanimously approved a new economic development and environmental program developed by Atlanta Gas Light, a subsidiary of AGL Resources (NYSE:AGL) , to encourage smart new investment in Georgia. The new program, called "Georgia Sustainable Environmental Economic Development program," or Georgia SEED, is designed to attract and retain jobs, support projects to reduce carbon emissions and encourage new investment in Georgia.

"Georgia's economy is suffering like our national economy," said Suzanne Sitherwood, president, Atlanta Gas Light. "The best way to get our economy moving is to make investments that attract jobs or keep jobs here. Georgia SEED is a new tool in the state's economic development toolbox that allows Atlanta Gas Light to invest in Georgia's future at no risk to our customers."

Under the new program, Atlanta Gas Light will contract with existing business customers or new customers that may be considering expanding into Georgia. AGL shall have the option to invest its capital to help customers finance line extensions, new natural gas equipment and equipment installations.

"Smart investing can generate new business and improve the state's air quality at the same time," said Hank Linginfelter, executive vice president, AGL Resources. "Installing new equipment that improves a business's efficiency or allows it to comply with new carbon emission laws may allow the business to better control its energy costs. Georgia SEED could make the difference in whether a struggling business remains open."

AGL and the Georgia PSC will work together to determine how Georgia SEED, which is a five-year, experimental program, should be designed to best meet the needs of Georgia business. Although AGL has long participated in state and local economic development projects, Georgia SEED is a new approach that allows the utility to expand its ability to meet customer needs while collaborating with the Georgia PSC to promote jobs and smart environmental investments.

Georgia SEED offers three potential avenues for contracts: providing customers with the benefit of a new utility service extension to plant sites; offering financing for the purchase and installation of new higher-efficiency gas equipment, such as engines, boilers, fleet vehicles, refueling stations and gas-fired air conditioning equipment; and discounted utility rates to help lower overall energy costs.

Georgia SEED benefits are available to customers who can establish significant economic and environmental benefits for the state. Customers will have little or no up-front costs and can pay back the investment over the life of the project.

"We are committed to improving the business climate of the state while improving the state's environment," said Sitherwood. "Responsible growth can achieve both goals simultaneously."

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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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