The New Jersey Board of Public Utilities -- today approved an agreement with Elizabethtown Gas regarding the company's March 2009 base rate increase filing.

Under the agreement, Elizabethtown Gas will increase its base rate by $2.9 million, or 0.64 percent of total revenue.

The new rate will increase the typical residential customer's heating bill 93 cents, or 0.7 percent, based on 100 therms of usage. The increase is the first for Elizabethtown Gas in seven years

"The New Jersey Board of Public Utilities has shown its support today of our company's investment in the state," said Jodi Gidley, president, Elizabethtown Gas. "The modest increase provides us with a reasonable outcome and allows our company to continue to support growth in the communities where we work and live."

Earlier this month, Elizabethtown Gas announced a refund for qualified customers who receive service under residential delivery service, small general service and multifamily service classifications. The refund is reflected as a one-time credit on this month's natural gas bills.

Elizabethtown Gas customers may also lower their monthly natural gas bills by participating in energySMART. This program offers several initiatives to provide customers with the tools they need to become more energy efficient and save money.

Elizabethtown Gas remains committed to the community and its customers. Over the past year, the company has made significant capital investment in its distribution system. This has led to improvements in service, reliability and environmental performance. Elizabethtown Gas also recently opened a new customer care center, creating more than 50 new jobs for the local economy.

Today's rate increase is based on a rate of return of 7.64 percent, including a return on common equity of 10.3 percent. Under the terms of the agreement, Elizabethtown Gas will reduce its overall depreciation rate from 3.20 percent to 2.58 percent, which equates to a reduction in depreciation expense of approximately $5.5 million. The agreement also includes provisions for a two-year stay out, customer service standards, and the recoverability of internal labor costs and customer education and outreach costs associated with Elizabethtown Gas energy conservation and efficiency programs through its approved regional greenhouse gas initiative rate.

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 current 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.

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

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SOURCE: AGL Resources