Virginia Natural Gas today announced its support for key energy initiatives outlined in the Virginia Energy Plan released by Governor Tim Kaine after administrative review by the Virginia Department of Mines, Minerals and Energy.

Among other things, the plan promotes energy independence through increased domestic energy production, enhanced investment in Virginia's energy infrastructure, and reducing energy growth through energy-efficiency and conservation programs.

"Governor Kaine understands that action must be taken to keep consumers and businesses from paying high energy costs due to energy demand outstripping supply," said Jodi Gidley, president of Virginia Natural Gas. "The Governor's report and the original legislation sponsored by Senator Frank Wagner have made a strong case for the need to produce more natural gas domestically - both in the US and in Virginia - and it is a recommendation that history will prove wise."

Virginia Natural Gas supports the economically attainable energy efficiency measures outlined in the plan and agrees that conservation initiatives are most effective when combined with the appropriate ratemaking policies that stabilize gas prices for consumers. In addition to energy conservation measures, the plan outlines Governor Kaine's goals to reduce greenhouse gas emissions by reducing transportation energy use. Virginia Natural Gas recently replaced the majority of its fleet vehicles with smaller, more efficient trucks equipped with cleaner burning engines to save fuel and reduce emissions.

Gidley went on to commend Governor Kaine's foresight in recognizing the need for increased investment in Virginia's energy infrastructure to support our state's growing economy. "In 2006, Virginia Natural Gas anticipated this need and developed plans to build a 21-mile natural gas pipeline crossing the James River called the Hampton Roads Crossing Project. This project will provide additional energy supply for southeast Virginia, support our state's growing economy and help moderate energy prices for consumers," Gidley added.

About Virginia Natural Gas

Virginia Natural Gas, a wholly owned subsidiary of AGL Resources , provides retail natural gas sales and distribution services to 264,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.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.

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SOURCE: Virginia Natural Gas