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Florida City Gas Reduces Natural Gas Prices for Second Month in a Row

Posted on: Tuesday, 7 March 2006, 09:00 CST

For the second month in a row, Florida City Gas (FCG), a subsidiary of Atlanta-based AGL Resources (NYSE: ATG), has reduced the commodity cost of natural gas that will be passed along to its customers.

Effective yesterday, March 1, 2006, FCG customers will see about a 6 percent reduction in their natural gas costs. The average customer bill using 25 therms per month using rates in effect in February 2006 would have been $56.29 in March. Using the rates announced today, the average March bill is projected to be $52.54. In February, customers saw about a 7 percent reduction in their costs, which translated into about a little more than $4 savings.

"Prices for all kinds of heating -- natural gas, fuel oil, electricity and propane -- have all risen since last year," said Charles Rawson, vice president and general manager of Florida City Gas. "But thanks to a warm winter and higher inventory levels, the price of natural gas is continuing to decline. We're pleased to pass along these savings to our customers in Miami-Dade, Brevard, St. Lucie, and Indian River counties."

FCG makes no profit on the natural gas it purchases on behalf of customers. The commodity cost is passed along to customers without markup.

"Despite these recent price drops, the commodity cost of natural gas prices is higher now than it has been historically because demand for the most efficient and cleanest-burning fossil fuel has increased while production has not," said Rawson. "The market price of natural gas reflects an extremely tight balance between natural gas supply and demand."

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 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 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.

Source: Business Wire

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