Elizabethtown Gas (ETG) announced today it has filed an application with the New Jersey Board of Public Utilities (NJBPU) requesting a base rate increase of 4.7 percent. The request would increase the typical residential heating customer's bill by $8.37 per month, based on 100 therms of usage.

The application requests recognition of the significant capital investment in the utility's infrastructure and the higher cost of capital driven by the recent turmoil in world financial markets. In addition, the filing includes a proposal that would create new jobs in the state by opening a new customer call center for its New Jersey customers and continued investment in pipelines and other infrastructure to improve service, reliability and environmental performance. The company has not increased base rates since 2002.

"This base rate increase will allow our company to continue to invest in New Jersey," said Don Carter, vice president, Elizabethtown Gas. "Given the challenges the state and the entire U.S. face today, now is the time to consider new investments in our own backyard."

The request for a base rate increase is driven by three primary factors: the impact of significant investments in utility infrastructure since 2002; improvement of service to ETG customers (including a proposal to open a new customer call center creating 53 new jobs) and a reflection of a higher cost of capital to finance operations.

"Today's filing lends support to both the state and federal economic stimulus plan and emphasizes our commitment to our community," said Carter. "This base rate increase will allow Elizabethtown Gas to continue to invest in New Jersey, build infrastructure, maintain our existing system and build on our track record of improved service and reliability for our customers."

In separate filings by the company, which is before the NJBPU, ETG is proposing a regional greenhouse gas initiative to enact six energy efficiency programs geared towards helping customers reduce their natural gas usage through energy conservation. ETG has also identified $60 million of needed infrastructure projects that can be accelerated over the next two years that will improve the natural gas system and support the state's goal of creating jobs and stimulating the economy.

Since AGL Resources acquired Elizabethtown Gas in 2004, the company has invested more than $124 million to extend service, improve operations and system reliability and to upgrade equipment used by our workforce.

About Elizabethtown Gas

Elizabethtown Gas, a wholly owned subsidiary of AGL Resources , provides natural gas delivery service to approximately 273,000 residential, business and industrial natural gas customers in New Jersey. In operation since 1855, the company serves parts of Union, Middlesex, Sussex, Warren, Hunterdon, Morris and Mercer counties. For more information, visit www.elizabethtowngas.com

About AGL Resources

AGL Resources , an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. 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.

First Call Analyst:
FCMN Contact:

SOURCE: AGL Resources