AGL Resources Inc. (ticker: AGL, exchange: New York Stock Exchange (.N))
News Release -
Virginia Natural Gas Reduces Gas Commodity Rates by 13 Percent; Average Residential Customer Will Save $44
NORFOLK, Va.--Jan. 26, 2006--Virginia Natural
Gas, a subsidiary of AGL Resources (NYSE: ATG), today announced a 13
percent reduction in the company's purchased gas costs, which will
save the average residential customer a total of $44 in February and
"We want to do everything we can to help our customers this
winter," said Hank Linginfelter, president of Virginia Natural Gas.
"Thanks to some well-timed decisions, our superb asset management
program, and the good fortune of warmer weather, our gas costs are
moderating. We want to pass along these savings to customers with
their first bills in February."
Earlier this month as part of a stipulation to reach a decision on
the company's rate freeze and performance based regulation proposal
before the Virginia State Corporation Commission (VSCC), Virginia
Natural Gas committed to tap its lowest cost gas storage assets to
reduce costs. In addition, Virginia Natural Gas will accelerate the
sharing of money available to the company under its VSCC approved
asset management program. In 2005, the program generated about $5
million, which the company will credit to customers during the first
quarter of 2006.
"As a result of recent market conditions and the accelerated
payout schedule, the asset management plan, especially this year, is a
tremendous benefit for Virginia Natural Gas customers," said
Managed by Sequent Energy Management, another AGL Resources
company, the progressive value sharing program has saved Virginia
Natural Gas customers roughly $17 million in gas costs since 2000.
With the 13 percent reduction from the previously filed rates for
the first quarter of 2006 for the gas cost portion of customer bills,
the average residential customer will save $44. The average
residential customer bill for the first quarter of 2006 using rates in
effect beginning in January would have been $332. Using the rates
approved today, the average residential bill for the first quarter is
projected to be $288.
"While energy costs still remain high, the warmer than usual
weather, which has brought natural gas prices down, allows us to take
this step now," Linginfelter explained. "This is reflected in our
reduction in gas costs as well. We want to make these cost savings
available to our customers when they need them most this winter."
In December, Virginia Natural Gas donated $125,000 to three
community organizations raising the company's total giving this year
to roughly more than $320,000 for energy assistance.
"During the last decade Virginia Natural Gas has worked with our
customers to contribute almost $1 million to the EnergyShare program
administered by the Salvation Army to help our neighbors in need in
Hampton Roads," said Linginfelter. "Since 1995, Virginia Natural Gas
corporate donations have totaled $617,500, and our customers have
contributed an additional $270,000."
About Virginia Natural Gas
Virginia Natural Gas, a wholly owned subsidiary of AGL Resources
(NYSE: ATG), provides retail natural gas sales and distribution
services to 265,000 customers in southeast Virginia. For more
information, visit www.virginianaturalgas.com.
About Sequent Energy Management
Sequent Energy Management, a wholly owned subsidiary of AGL
Resources Inc. (NYSE: ATG), is a Houston-based entity focusing on
asset management and optimization, producer services, wholesale
marketing and risk management. For more information, visit
About AGL Resources
AGL Resources (NYSE: ATG), an Atlanta-based energy services
holding company, serves 2.2 million customers in six states through
its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New
Jersey, Virginia Natural Gas, Florida City Gas, Chattanooga Gas, and
Elkton Gas in Maryland. Ranked by Forbes as one of the 10 Best Managed
Utilities and No. 250 in the Forbes Platinum 400 in 2006 as well as a
Fortune 1000 company in 2005, AGL Resources reported revenue of $2.7
billion and net income of $193 million in 2005. The company also owns
Houston-based Sequent Energy Management, an asset manager serving
natural gas wholesale customers throughout the East and Midwest. As a
70 percent owner in the SouthStar partnership, AGL Resources markets
natural gas to consumers in Georgia under the Georgia Natural Gas
brand. AGL Networks, the company's telecommunications subsidiary, owns
and operates fiber optic networks in Atlanta and Phoenix. 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.
CONTACT: AGL Resources, Atlanta
Jose Simon, 757-616-7507
Martha Monfried, 404-584-3787
SOURCE: AGL Resources