AGL Resources Utility Subsidiaries from New Jersey to Florida Reduce Rates, Offer Refunds to Customers; Companies Pass Along Reduced Natural Gas Cost Savings.
The savings, which are credited to customers' bills, result from rate reductions in Maryland, Virginia, Tennessee and Florida and refunds in Tennessee and New Jersey. The savings per residential customer range from $4 in February and March up to $75 in April.
"We've taken advantage of a combination of lower than expected gas prices, asset management agreements and storage access to reduce the costs of natural gas purchases at our operating companies in February and March," said Kevin P. Madden, executive vice president of External Affairs at AGL Resources. "We're pleased to pass along these savings as quickly as possible to our customers all along the East Coast."
The AGL Resources subsidiaries under state approved asset management agreements work closely with Sequent Energy Management, another AGL Resources company, to buy and store natural gas. The utilities, which do not make any profit on the gas they purchase for customers, have worked with their respective state utility commissions to pass along the savings they've achieved to customers as soon as possible.
"With the help of our team at Sequent, we are able to manage larger volumes of gas more effectively and are able to utilize transportation and storage services more efficiently," said Madden. "Our operating companies were able to take advantage of their asset management arrangements with Sequent to accelerate refunds, in addition to general market trends resulting from a warmer than normal winter to create savings that we have been able to pass along to our customers."
The following is a summary of the AGL Resources subsidiaries and their reductions or refunds to customers:
--Elizabethtown Gas in Union, N.J., will refund $16.5 million to its customers as a credit in their bills beginning April 1, 2006. Under the company's proposal, filed March 8 with the New Jersey Board of Public Utilities (BPU), a typical residential heating customer using 1,100 therms of natural gas annually will receive a credit of approximately $75 in their April bill. A typical residential non-heating customer using 215 therms annually will receive a credit of approximately $15 in April.
--Elkton Gas in Elkton, Md., reduced rates for purchased gas costs by 8 percent in February and an additional 3 percent in March. The new rates saved the average residential customer $17 in February and an additional $6 in March.
--Florida City Gas serving Miami-Dade, Brevard, St. Lucie, and Indian River counties, reduced its commodity cost of natural gas for the second month in a row. Florida City Gas customers saw a reduction of about 7 percent in February followed by another 6 percent in March. This is a total savings of approximately $4 each month for the average residential customer.
--Virginia Natural Gas, which serves the Norfolk-Virginia Beach area, reduced its gas costs by 13 percent in February and an additional 4 percent in March, which saved the average residential customer a total of $44 in February and an additional $4 in March. In January, 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 accelerated 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.
--Chattanooga Gas Company in Tennessee reduced its gas costs by 12 percent to save the average residential customer $20 and $17 on their February and March bills, respectively. Chattanooga Gas Company also requested and the Tennessee Regulatory Authority approved an approximate $43 credit to residential customer bills during the first quarter of 2006 funded by the company's asset management sharing arrangement. In 2005, the program generated roughly $4.5 million.
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.
About Chattanooga Gas
Chattanooga Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and transportation services to approximately 61,000 customers in Hamilton and Bradley counties in southeast Tennessee. The Chattanooga Gas service area includes the communities of Chattanooga, Cleveland, Red Bank, East Ridge, Lookout Mountain and Signal Mountain. For more information, please see www.chattanoogagas.com.
About Elizabethtown Gas
Elizabethtown Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to more than 266,000 residential, business and industrial natural gas customers in New Jersey. In operation since 1855, the company serves parts of Union, Middlesex, Sussex, Warren, Hunterdon, Morris and Mercer counties. For more information, visit www.elizabethtowngas.com.
About Elkton Gas
Elkton Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to approximately 5,800 residential and business natural gas customers in the greater Elkton area, on Maryland's eastern shore. For more information, visit www.elktongas.com.
About Florida City Gas
Florida City Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), serves approximately 103,000 residential and commercial natural gas customers in Florida's Miami-Dade, Brevard, St. Lucie, and Indian River counties. For more information, visit www.floridacitygas.com.
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 261,000 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 www.sequentenergy.com.
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," "can," "could," "estimate," "expect," "forecast," "future," "indicate," "intend," "may," "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, impact of changes in state and federal legislation and regulation, actions taken by government agencies on rates and other matters, financial market conditions and general economic conditions, utility and energy industry consolidation, impact of acquisitions and divestitures, and other factors which are listed in greater 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.
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|Date:||Mar 16, 2006|
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