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Virginia Natural Gas Forecasts Lower Prices for Fourth Quarter

Posted on: Thursday, 5 October 2006, 09:00 CDT

Virginia Natural Gas, a subsidiary of AGL Resources (NYSE: ATG), announced today that its customers should see a significant drop in their natural gas bills in the fourth quarter of this year as compared to the same time last year.

Residential rates filed by the company with the Virginia State Corporation Commission for fourth quarter 2006 have decreased approximately 28 percent from fourth quarter 2005, the period in which the natural gas market was at an all time high. Similarly, commercial rates have decreased approximately 32 percent.

Based on the current rates for fourth quarter 2006, a Virginia Natural Gas residential customer with a normal usage of 198 ccf during the October through December time period, will see an average savings of $100 over the same time period in 2005.

"A combination of factors is resulting in lower natural gas prices," said Hank Linginfelter, president of Virginia Natural Gas. "That means significant cost savings for our customers."

Linginfelter said that factors include increased production of natural gas as the industry recovers from last year's devastating hurricane disruptions, a mild 2006 hurricane season thus far, and ample natural gas storage supplies.

As a gas distribution company, Virginia Natural Gas must purchase natural gas from suppliers at the current market price. The company passes the cost of the gas without a profit to its customers. Additionally, Virginia Natural Gas has not increased its rates for costs associated with its delivery charges since 1996 and recently agreed to freeze these non-gas rates for an additional five years.

For optimum energy efficiency and cost savings this winter, Virginia Natural Gas customers are encouraged to have their furnaces serviced and to take the time to winterize their homes. A wealth of energy-saving tips and information can be found on the Virginia Natural Gas web site at www.virginianaturalgas.com under "Customer Care-Energy Conservation."

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 as well as No. 647 on the Fortune 1000 and No. 40 in the Fortune gas and electric utilities sector in 2006, 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.

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 265,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.

Source: Business Wire

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