Virginia Natural Gas, a subsidiary of AGL Resources Inc. , today announced that its asset management plan, managed by Sequent Energy Management, saved Virginia Natural Gas customers $1.89 million in 2006. Since the plan's inception six years ago, the Sequent asset management plan has generated approximately $19 million in savings through reduced gas costs for Virginia Natural Gas customers.

"As Virginians experience seasonably low temperatures, natural gas remains an excellent residential and commercial heating source because of energy efficiency, comfort and reliability," said Hank Linginfelter, president of Virginia Natural Gas. "As our customers adjust their thermostat to heat their homes and businesses, Virginia Natural Gas continues to work with Sequent to hold down gas costs."

Customers will reap the benefits of the $1.89 million savings from April 2007 through March 2008 in the form of reduced gas costs. The gas cost reduction will not appear as a line item on the gas bill but will be reflected in the gas cost calculation applied to the customer's bill. The total gas cost calculation takes into account the current market price of natural gas, gas storage, and transportation expenses.

As a gas distribution company, Virginia Natural Gas must purchase natural gas from suppliers at the current market price. Because of the asset management services Sequent provides for Virginia Natural Gas, the gas cost customers see on their bill will be less than the overall price the company paid for the gas. Virginia Natural Gas has not increased its rates for costs associated with gas delivery charges since 1996 and recently agreed to freeze these non-gas rates for an additional five years.

"Customers pay only what Virginia Natural Gas paid for the natural gas -- and not a penny more," Linginfelter said. "Virginia Natural Gas is doing everything possible to cushion the impact on customers by managing costs, offering rebates, encouraging energy conservation and supporting energy assistance."

Virginia Natural Gas customers can realize additional savings through efficient gas usage and adequate home weatherization. Customers can manage their home heating bills by reducing air leaks using caulk or weather- stripping to seal doors and windows while insulating home attics and walls. Virginia Natural Gas customers can also take advantage of rebates by installing energy efficient furnaces and appliances. The current promotion for residential replacement of furnaces and water heaters lasts until March 31, 2007.

Even though Virginia Natural Gas is helping customers manage home heating costs by sharing gas cost savings, offering rebates, and encouraging energy conservation, some customers will struggle to pay their heating bills. The company supports programs that help low-income households and low-income senior citizens manage their heating bills. Virginia Natural Gas encourages those in need to take advantage of the Energy Share and Low Income Heating Assistance Programs.

The Energy Share program is administered by the Salvation Army and funded by voluntary donations from Virginia Natural Gas customers. The company matches customer contributions up to $30,000 on an annual basis. Virginia Natural Gas customers donated $32,205 between September 2006 and January 2007. The company matched $30,000 of this contribution and donated an additional $10,000 to cover administrative fees.

The Low Income Heating Assistance Program (LIHEAP) is administered by the Virginia Department of Human Resources. This program provides fuel assistance for winter heating bills to individuals who qualify. In an attempt to reach low-income customers who qualify for heating assistance funds, Virginia Natural Gas is working with local community action agencies to identify and enroll residents who qualify for these programs. To date, the state has identified over 2,000 customers who qualify for assistance.

"Virginia Natural Gas has long worked to get the word out about these energy assistance programs," Linginfelter continued. "During the past decade, Virginia Natural Gas has worked with our customers to contribute almost $1 million to the Energy Share program. Providing this support is another way we can reach out to the Hampton Roads community to help our neighbors in need."

About Virginia Natural Gas

Virginia Natural Gas, a wholly owned subsidiary of AGL Resources, 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. , 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, an Atlanta-based energy services company, serves more than 2.2 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the nation. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. 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.

SOURCE: AGL Resources Inc.