Atlanta Gas Light Company to File Motion for Reconsideration Of Rate Proceeding
Atlanta Gas Light Company, a wholly owned subsidiary of AGL Resources Inc.
"It is surprising that AGLC's rate of return has suddenly become an issue for the Commission," said Paula Rosput, AGL Resources president and chief executive officer. "The detailed monthly reporting provided to the Commission, with information dating back to 1998, is meant to prevent this very issue from occurring. Those reports clearly show AGLC is far from overearning. We are confident that a full and fair review of the facts will show that the company is underearning relative to its allowed return. Ironically, a rate increase -- rather than a decrease -- is actually warranted. Meanwhile, we have been trying to hold the line and not raise rates by creating operational efficiencies."
In its most recent monthly filing with the Commission, AGLC reported a return on equity of 9.9 percent for the 12 months ended May 31, 2001, compared with an authorized return on equity of 11 percent established by the Commission in 1998. The last rate review conducted by the Commission established a rate of return for the company that was below the allowed rates for other regulated Georgia companies.
Based on the schedule adopted as part of the Commission's proceedings, a final decision would be rendered in March 2002. The decision to move forward with a rate review, based upon findings of a hired consultant and the Commission staff, assumes the company's returns exceed those allowed in the most recent rate proceeding decided by the Commission in June 1998.
The staff's findings are not based on a projected test year, as required by Georgia law, but instead based on the findings of the consultant hired by the Commission. Additionally, the Commission issued its decision before receiving the company's formal response, which was to be delivered on or before September 1, 2001.
AGL Resources Inc. is a regional holding company for energy and infrastructure related businesses in the Southeast. The company is the second-largest natural gas-only distribution company in the United States and serves more than 1.8 million customers throughout Georgia; Chattanooga, Tennessee; and southeastern Virginia. AGL Resources also is engaged through subsidiaries and partnerships in other businesses, including telecommunications, retail energy marketing, wholesale energy services, and wholesale and retail propane sales. More information about the company is available on the Internet at http://www.aglresources.com/ .
SOURCE: AGL Resources Inc.
Contact: financial, Steve Cave, Director, Investor Relations,