Chattanooga Gas Company Sharing Plan Saves $1.26 Million for Customers.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--March 3, 2004

Chattanooga Gas Company (CGC), a subsidiary of AGL Resources Inc. (NYSE: ATG), announced today that its Asset Management Plan, managed by Sequent Energy Management, another AGL Resources company, saved CGC customers $1.26 million in 2003. The benefits realized during 2003 will be shared throughout 2004 starting in April in the form of reduced gas costs. The savings equate to an annual average of approximately $21 per customer.

"The $1.26 million reduces overall gas costs for our residential and small business customers," said Steve Lindsey, vice president of operations for CGC. "The reduction does not appear as a line item on the gas bill but is reflected in the gas cost calculation applied to the customer's bill. We are pleased to be able to deliver cost savings to our customers."

Sequent has managed CGC's assets since May 2001, with the goal of optimizing CGC's utility assets and sharing the savings with customers.

"Asset managers who focus on optimizing physical assets on behalf of customers are increasingly playing a key role in the way utilities manage their businesses," Lindsey said. "The savings at CGC in 2003 illustrate the value that can be added to the business and the customers that are served."

About Chattanooga Gas Company

Chattanooga Gas Company, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), provides retail natural gas sales and distribution services to 61,000 customers in southern Tennessee. For more information, visit www.chattanoogagas.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 www.SequentEnergy.com.

About AGL Resources

AGL Resources Inc. (NYSE: ATG) is an Atlanta-based energy services holding company, and was named 2003 Gas Company of the Year by Platts Global Energy Awards. Its utility subsidiaries - Atlanta Gas Light Company, Virginia Natural Gas and Chattanooga Gas Company - serve approximately 1.8 million customers in three states. Houston-based subsidiary Sequent Energy Management provides natural gas asset management and producer services. As a member of 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. For more information, visit www.aglresources.com.