|ATLANTA, Oct. 6, 2015 - AGL Resources Inc. (NYSE: GAS) announced today that its Atlanta Gas Light (AGL) subsidiary has reached a settlement with the Georgia Public Service Commission (the Commission) related to its Pipeline Replacement Program (PRP) that concluded in December 2013. The settlement resolves all issues related to the previously disclosed February 2015 PRP true-up filing, the August 2014 agreement related to construction issues on one of the capital projects under the program (the Eastside Pipeline "ESPL"), and various other matters. The Commission voted unanimously to approve the settlement, which marks the completion of AGL's comprehensive, 15-year program.
"We are pleased to bring this successful Pipeline Replacement Program to a close," said Bryan Batson, president of Atlanta Gas Light. "It was the foresight of the Georgia Public Service Commission that led to the systematic replacement of over 2,700 miles of bare steel and cast-iron, which has made our system even safer and more reliable," he said.
Under the terms of the settlement, AGL will collect $144 million related to the under-recovered PRP revenue requirement through a monthly surcharge beginning in October 2015 and continuing through 2025. An additional $30 million will be collected through future rate base adjustments beginning no sooner than March 31, 2017. Further, AGL is pursuing claims against third party contractors related to the ESPL matter and will retain any amounts recovered through the legal process.
Today's settlement is in line with AGL Resources' 2015 earnings per share guidance and consistent with the company's previously disclosed 5-year plan.
AGL continues to replace aging pipeline infrastructure and is currently focused on the replacement of vintage plastic pipelines in its system.
About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves more than one million retail customers through its SouthStar Energy Services joint venture and Pivotal Home Solutions, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management and ownership and operation of natural gas storage facilities. AGL Resources is a Fortune 500 company and a member of the S&P 500 Index. For more information, visit www.aglresources.com.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements, which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements contained in this press release include, without limitation, statements regarding the anticipated recovery and timing of revenue under the PRP settlement, recovery of costs under the ESPL matter, the impact of the PRP settlement on our guidance and 5-year plan and related expectations and assumptions.
Actual results may differ materially from those suggested by the forward-looking statements for a number of reasons including, but not limited to, the factors provided in detail in AGL Resources' filings with the Securities and Exchange Commission, which are incorporated by reference in this press release. Forward-looking statements are only as of the date they are made. We disclaim any obligation to publicly revise any forward-looking statement, whether as a result of future events, new information or otherwise, except as required under United States federal securities law.
Director, Investor Relations
Director, External Communications