Virginia Natural Gas Company and AGL Energy Services Enter Into Agreement to Centralize Energy Management Services
(Virginia Residents To Realize New Benefits)
On November 30, the Virginia State Corporation Commission approved a filing made by Virginia Natural Gas Company (VNG) and AGL Energy Services (AGLES) for AGLES to provide energy services to VNG for its approximately 230,000 customers in Virginia.
The Order approves the management of a comprehensive portfolio of natural gas supply, transmission, and asset management services by AGLES for VNG.
"We are pleased to see this agreement come quickly to fruition as a service for Virginia residents," said Hank Linginfelter, President of Virginia Natural Gas Company. This is a unique opportunity to create value for the Virginia consumer which translates into savings, lower rates and is a means for the utility to continue managing its gas assets in a cost effective and efficient manner. I'd like to thank the Virginia Commission Staff for its willingness to work with us to create a win-win situation for all parties."
The first of its kind in the state, the agreement would allow AGLES to buy and sell natural gas, manage VNG's interstate pipeline transportation and storage contracted assets and two propane air plants. AGLES would be contractually accountable to VNG for maintaining service reliability at the traditionally high level. AGLES may chose to partner with other recognized national asset managers to achieve greater economies of scale and add value to VNG's customers.
"This agreement would enable Virginia Natural Gas Company customers to realize benefits of innovative natural gas procurement and asset management strategies that might not have been available to us as a stand-alone company," adds Linginfelter. "We hope that by bringing together the procurement and asset management services, we can achieve competencies that will eliminate duplication of personnel and facilities, so that the price to customers of VNG's delivered natural gas can be reduced."
As a key part of the Order, the Commission also approved a sharing mechanism whereby AGLES and VNG would share revenues that are realized from these services. Customers' benefits would show up as credits through the purchased gas adjustment.
"As we move to create an organization that meets the challenging demands of the marketplace, we continue to demonstrate and strategically position ourselves as a major energy player, providing added value to our customers, sharpening our base of skills and increasing our efficiencies," said Paula G. Rosput, President and Chief Executive Officer for AGL Resources, Inc. According to Rosput, AGLES' goal as the primary asset manager is to take advantage of the market opportunities -- both physical and financial, to manage VNG's assets in combination with other assets to best meet the requirements of VNG's customers.
AGL Energy Services formed in 1996, and a subsidiary of AGL Resources, Inc.
AGL Resources Inc. is a regional energy holding company with operations in the Southeast. Atlanta Gas Light Company, the company's primary subsidiary, is the largest natural gas distributor providing delivery service to more than 1.8 million customers in Georgia, Chattanooga, Tennessee and the and the Hampton Roads area in Virginia. Although natural gas distribution is AGL Resources' core business, it also is engaged in other energy-related businesses, including retail energy marketing, customer care services for energy marketers, and wholesale and retail propane sales. Additional information about AGL Resources can be found online. The company's Internet address is http://www.aglresources.com/ .
SOURCE: AGL Resources Inc.
Contact: Nick M. Gold, 404-584-3457, or 1-800-291-9649, or Lisa R.