Virginia Natural Gas Reduces Gas Commodity Rates by 13 Percent; Average Residential Customer Will Save $44 January 26, 2006
NORFOLK, Va.--(BUSINESS WIRE)--Jan. 26, 2006--Virginia Natural Gas, a subsidiary of AGL Resources (NYSE: ATG), today announced a 13 percent reduction in the company's purchased gas costs, which will save the average residential customer a total of $44 in February and March.
"We want to do everything we can to help our customers this winter," said Hank Linginfelter, president of Virginia Natural Gas. "Thanks to some well-timed decisions, our superb asset management program, and the good fortune of warmer weather, our gas costs are moderating. We want to pass along these savings to customers with their first bills in February."
Earlier this month 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 will accelerate 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.
"As a result of recent market conditions and the accelerated payout schedule, the asset management plan, especially this year, is a tremendous benefit for Virginia Natural Gas customers," said Linginfelter.
Managed by Sequent Energy Management, another AGL Resources company, the progressive value sharing program has saved Virginia Natural Gas customers roughly $17 million in gas costs since 2000.
With the 13 percent reduction from the previously filed rates for the first quarter of 2006 for the gas cost portion of customer bills, the average residential customer will save $44. The average residential customer bill for the first quarter of 2006 using rates in effect beginning in January would have been $332. Using the rates approved today, the average residential bill for the first quarter is projected to be $288.
"While energy costs still remain high, the warmer than usual weather, which has brought natural gas prices down, allows us to take this step now," Linginfelter explained. "This is reflected in our reduction in gas costs as well. We want to make these cost savings available to our customers when they need them most this winter."
In December, Virginia Natural Gas donated $125,000 to three community organizations raising the company's total giving this year to roughly more than $320,000 for energy assistance.
"During the last decade Virginia Natural Gas has worked with our customers to contribute almost $1 million to the EnergyShare program administered by the Salvation Army to help our neighbors in need in Hampton Roads," said Linginfelter. "Since 1995, Virginia Natural Gas corporate donations have totaled $617,500, and our customers have contributed an additional $270,000."
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.
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.
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.
CONTACT: AGL Resources, Atlanta Jose Simon, 757-616-7507 jsimon@aglresources.com or Martha Monfried, 404-584-3787 Cell: 973-274-2269
mmonfrie@aglresources.com SOURCE: AGL Resources