Jefferson Island Storage & Hub Solicits Bids for Storage Capacity Available Beginning Next Year.

ATLANTA -- Jefferson Island Storage & Hub (JISH), owner and operator of a salt cavern storage facility in Louisiana and a wholly owned subsidiary of Atlanta-based AGL Resources (NYSE: ATG), today announced it is soliciting bids for firm and interruptible natural gas storage services, which will be available in early 2007.

JISH will have 1.1 million dekatherms (MMDth) of storage capacity available beginning April 1, 2007.

In addition, JISH is soliciting interest in capacity for its fourth cavern scheduled to be in service in 2011.

Located near the Henry Hub at Erath, La. in Vermillion and Iberia Parishes, JISH is a high-deliverability storage facility capable of multiple inventory cycles every year. The facility currently consists of two salt dome gas storage caverns with 10 MMDth of total capacity, and 7.2 MMDth of working gas capacity. Currently, JISH has 720,000 dekatherms per day (Dth/d) withdrawal capacity and 360,000 Dth/d injection capacity.

The JISH header system currently has interconnections with eight pipelines including direct access to the Henry Hub via Sabine Pipeline. JISH connects with Crosstex (Louisiana Intrastate Gas), Texas Gas Transmission, Columbia Gulf Transmission, Sea Robin Pipeline, Tennessee Gas Pipeline, Gulf South Pipeline and NGPL. JISH anticipates having new interconnects with Trunkline and SONAT in connection with the expansion of its third cavern. In addition, JISH has the potential to interconnect with Bridgeline, Acadian and Dow if customers are interested.

JISH has begun its expansion plans for its third cavern, which is expected to be completed by 2009. This expansion is expected to increase the total capacity at JISH to 13.6 MMDth.

JISH previously solicited interest in the third cavern and based on customer interest from that solicitation is now also soliciting interest in its fourth cavern, which is scheduled to come online by 2011. This expansion is expected to increase the total capacity at JISH to as much as 19.8 MMDth with 1.5 MMDth per day withdrawal capacity and 750,000 Dth/d injection capacity.

Parties interested in JISH's capacity bidding process should contact Rob deCardenas at [phone] ([e-mail]), Elsa Villarreal at [phone] ([e-mail]) or Mary Lou Dale at [phone] ([e-mail]). Information also is available on the JISH bulletin board located at http://www.gasnom.com/ip/jeffersonisland/

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. 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 Pivotal 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, such as the expected new pipeline interconnections and completion of expanded caverns, 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," "can," "could," "estimate," "expect," "forecast," "future," "indicate," "intend," "may," "outlook," "plan," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions. 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; actions taken by government agencies on rates and other matters; direct or indirect effects on AGL Resources' 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 and general economic conditions; 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 any obligation to update these statements to reflect subsequent changes.