Elkton Gas Urges Customers to Conserve and Weatherize Homes to Maximize Efficiency and Minimize Bills During the Upcoming Heating Season.

ELKTON, Md. -- Elkton Gas, a subsidiary of Atlanta-based AGL Resources (NYSE: ATG), urges its customers to follow a few easy and low-cost steps to save money on their 2005-2006 heating bills, which energy experts predict could be 48 percent higher this winter.

"Elkton Gas has ample supplies of natural gas for the upcoming winter heating season," said Candy Davis, operations manager of Elkton Gas. "However, not being able to predict what mother nature will bring, we're concerned about the impact of unprecedented energy prices on our 6,000 customers in Cecil County."

The Energy Information Administration (EIA) today issued its winter forecast projecting higher increases for all energy sources used to heat homes. The increase is largely due to supply imbalances in the market in the aftermath of two major hurricanes - Katrina and Rita - that impacted the Gulf area where most of the East Coast's natural gas supply originates.

According to the EIA, residential-per-household expenditures for fuels this winter compared to last winter, assuming a medium-speed recovery from Katrina and Rita, will increase 48 percent nationwide for natural gas. The typical consumer nationwide will spend approximately $350 more to heat their homes this winter, according to EIA's short-term energy outlook report.

"We are doing everything we can to manage costs and deliver reliable supplies, working with governmental agencies and energy assistance organizations to help those in need," added Davis. "We want our customers to do everything possible to maximize energy efficiency through conservation and weatherization to minimize their bills. We are encouraging them to take the necessary steps now to weatherize their homes before cooler temperatures arrive.

"A combination of conservation and weatherization in addition to using natural gas heating systems and appliances offers homeowners the highest total energy efficiency," Davis said.

While the wholesale cost of natural gas has increased dramatically over the past few months as a result of Katrina and Rita, natural gas utilities make no profit from the wholesale gas they purchase to meet customer demand. Utilities, such as Elkton Gas, are only allowed to earn revenue through delivery charges, which generally make up 20 percent of customer bills and are based on rates filed and approved by regulators.

Elkton Gas recommends these and other conservation and weatherization tips, available at www.elktongas.com, to help customers minimize their energy bills:

--Have furnaces checked by a certified HVAC contractor to make sure they are working at optimum capacity. Now is a good time to have other fuel-burning appliances such as natural gas stoves and water heaters examined as well.

--Replace old, outdated appliances with high-efficiency natural gas models. When buying new appliances, compare energy efficiency ratings and annual operating costs.

--For safety's sake, make sure smoke alarm and carbon monoxide detectors are working. Have an alarm and a detector on each floor of a home. Check the batteries regularly.

--Set thermostats at 65 degrees during the winter and at 58 degrees when away from the house for more than a few hours. Bear in mind that warmer temperatures are recommended for homes with ill or elderly persons or infants.

--Turn down thermostats automatically without sacrificing comfort by installing an automatic setback or programmable thermostat. This can cut heating bills by as much as 10 percent per year by turning thermostats back 10 to 15 percent for eight hours per day.

--Change the disposable filters in the furnace before turning it on for the winter. Change the filters once a month during the heating season. Use receipt of monthly energy bills as a reminder.

--Warm air rises, so use registers to direct warm airflow across floors.

--Close vents and doors in unused rooms and close dampers on unused fireplaces.

--Set the water heater temperature at 120 degrees. This will reduce water heating bills without sacrificing comfort.

--Install water-flow restrictors in showerheads and faucets to save on hot water. Take showers instead of baths. Showers use less hot water.

--Run washing machines and clothes dryers with a full load. Wash clothes in cold or warm water instead of hot.

--Use passive solar energy by opening drapes and blinds during the day. Close them at night to retain heat.

--Check to see if the attic and basement have the recommended levels of insulation. If the basement is unfinished, the floor above it should be insulated.

--Install storm or thermal windows and doors or double-paned glass.

--Insulate pipes so they won't freeze.

--Add weather-stripping and caulking to windows and doors. As much as 30 to 40 percent of a house's energy load is attributed to outside air penetrating the home.

--Add weather-stripping tapes that adhere directly to door and window frames for a tight seal. Add a door sweep for more insulation.

--Wear layers of clothing or insulated clothing indoors.

--Put extra blankets or down comforters on beds.

Elkton Gas also encourages and works with customers to help them obtain assistance to pay their energy bills. These include non-profit organizations and state and local agencies which offer a variety of programs listed below to assist qualified individuals with their natural gas bills.

Low Income Home Energy Assistance Program (LIHEAP)

LIHEAP helps with heating costs and may cover certain medically necessary cooling expenses. Eligibility is based on household size and income. Even if heat is included in the rent, customers may qualify. LIHEAP will take applications from Nov. 1, 2005 through March 31, 2006. Note that if a customer qualified for LIHEAP last year, they still must reapply. Call toll-free at 1-866-674-6327 for energy assistance referral.

Maryland Energy Assistance Program

Qualified customers may receive, help with their gas bills through the Maryland Energy Assistance Program. This program is administered by the Maryland Department of Social Services. To determine if a customer is eligible, or to apply for assistance, contact:

Cecil County Dept. of Social Services

135 E. Main Street
Elkton, MD  21921-5624
Phone: [phone]

To learn more about the Maryland Energy Assistance Program visit their web site at http://www.dhr.state.md.us/meap/

Utility Service Protection Program (USPP)

USPP is an even monthly payment program developed for low income families by the Maryland Public Service Commission and sponsored by local utilities. Customers are eligible for USPP if they qualify for assistance from MEAP and agree to make the required payment each month. They may apply for USPP when they apply for MEAP.

With USPP, customers pay no deposit or reconnection charges, but they must pay any amount on their past due bill above $400.00. If they do not use gas as their primary heat source, they must pay the total bill for gas service.

About Elkton Gas

Elkton Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to approximately 6,000 residential and business natural gas customers in the greater Elkton area, on Maryland's eastern shore. For more information, visit www.elktongas.com.

About AGL Resources

AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.3 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. A Fortune 1000 company that ranks number 46 in the Fortune gas and electric utilities sector, AGL Resources reported 2004 revenue of $1.8 billion and net income of $153 million. 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.