Atlanta Gas Light Updates Customer Capacity Requirements Effective August 1

Atlanta Gas Light Company has recalculated the capacity charges that appear on the bills sent by marketers to the nearly 1.5 million natural gas customers customers in Georgia. The recalculation is based on the amount of capacity needed to support the gas delivery system and is based on the gas usage at each customer premise during the most recent year.

Updated calculations go into effect August 1. For most customers, this change is very small.

"About half of the customers will see a slight increase, and about half will see a slight decrease," said Hank Linginfelter, Vice President of Rates for Atlanta Gas Light Company. However, the utility's profits are not affected by these changes.

Customers that have made significant changes in how they use natural gas will see more significant changes in their capacity assignment. For example, if a customer has added one or more major gas appliances since 1998, the capacity requirement for that customer's premise likely would increase. On the other hand, if a customer had switched fuels from natural gas to something else, the capacity assignment for that customer's premise likely would decrease.

"This is the fairest way to allocate each customer's share of the total cost of the delivery system," Linginfelter said. "This does not alter the total amount collected by Atlanta Gas Light Company for service to Georgia customers, but it will change what share of the total each customer pays."

This is the first time the capacity requirements have been updated since rates were revised in July 1998. Henceforth, the capacity calculation will be updated annually to reflect the latest year's usage information for each customer premise.

Customers should contact their gas marketer if they have questions about the affect of this adjustment to the delivery charge on their total gas bill.

Atlanta Gas Light Company is the largest natural gas distribution utility in the Southeast and one of the largest in the United States. It is the first utility in the U.S. to undergo full deregulation. Its parent, AGL Resources , is a regional energy holding company, headquartered in Atlanta, whose core business is natural gas distribution. AGL Resources also maintains interests in other energy-related businesses, including retail energy marketing, customer care services for energy marketers and wholesale and retail propane sales.

SOURCE: Atlanta Gas Light Company

Contact: Nick Gold of Atlanta Gas Light Company, 404-584-3457