UNION, N.J., June 1, 2011 /PRNewswire/ -- Elizabethtown Gas, a subsidiary of AGL Resources, has filed a petition with the New Jersey Board of Public Utilities to lower rates to residential customers by an average of 8.9 percent. The company proposes to reduce its gas costs to firm customers by $23 million.
Beginning Oct. 1, 2011, the proposed Basic Gas Supply Service (BGSS) rate would be reduced from the current $0.8031 per therm to $0.6924 per therm. This reduction would lower the average monthly bill (including the base charge) of a residential heating customer who uses 100 therms of gas per month from $124.93 to $113.86, a savings of $11.07.
"Lower commodity prices and effective supply strategies to help manage price volatility coupled with upstream capacity management by Sequent Energy Management, L.P., the company's asset manager, have enabled Elizabethtown Gas to reduce gas costs," said Don Carter, vice president of Elizabethtown Gas. "We are pleased to pass these cost savings to our customers through the BGSS."
The BGSS rate is a direct pass-through to customers that allows the company to recover its gas costs, but does not allow the company to mark-up or earn a return on those costs.
About Elizabethtown Gas
Elizabethtown Gas, a wholly owned subsidiary of AGL Resources (NYSE: AGL), provides natural gas delivery service to approximately 276,000 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 (NYSE: AGL), 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 an 85-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 two high-deliverability natural gas storage facilities: Jefferson Island Storage & Hub near the Henry Hub in Louisiana and Golden Triangle Storage in Texas. For more information, visit www.aglresources.com.
SOURCE Elizabethtown Gas
