VNG Sharing Plan Will Net More Than $3 Million in Savings For Customers in 2005

February 16, 2005

NORFOLK, VA - Feb.16, 2005 - Virginia Natural Gas (VNG), a subsidiary of AGL Resources Inc. (NYSE: ATG), announced today that its progressive value-sharing plan, managed by Sequent Energy Management, another AGL Resources company, saved VNG customers more than $3 million in 2004. The benefits realized during 2004 will be shared throughout 2005 in the form of reduced natural gas costs. Since the plan's inception in 2000, VNG customers have received nearly $12 million in savings.

"The asset management plan has been a tremendous benefit for VNG’s customers," said Hank Linginfelter, president of VNG. "We are pleased to be able to deliver these cost savings to our customers."

The progressive value-sharing plan, approved in 2000 by the State Corporation Commission, which regulates utilities in Virginia, requires VNG to optimize or increase the value of its interstate pipeline contracts and storage assets. The plan is administered by Sequent Energy Management, an asset manager.

Sequent coordinates the use of VNG's assets, making them available to other energy companies when they are not needed to serve VNG's residential and business customers. Sequent participates in sharing only after reaching a pre-determined minimum level for VNG and its ratepayers.

"The $3 million saved in 2004 will reduce overall gas costs for our residential and small business customers in 2005,” explained Jodi Gidley, vice president of operations for VNG. “The reduction does not appear as a line item on the VNG bill, but is reflected in the gas cost calculation applied to all customer bills."

"With Sequent overseeing VNG's assets this winter, the plan continues to generate value, which is expected to result in additional savings for our customers next year," said Gidley.

About AGL Resources AGL Resources (NYSE: ATG) is an Atlanta-based energy services holding company and was named 2003 Gas Company of the Year by Platts Global Energy Awards. The company's utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas in Norfolk, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland - serve 2.2 million customers in six states. Houston-based subsidiary Sequent Energy Management is involved in natural gas asset management and optimization, producer services, wholesale marketing and risk management activities. As a member of the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana, and Virginia Gas, a natural gas storage pipeline and distribution company in southwestern Virginia, and a high-deliverability salt cavern storage facility in Saltville, VA. For more information, visit www.aglresources.com.

About Virginia Natural Gas Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and distribution services to 260,000 customers in southeast Virginia. For more information, visit www.VirginiaNaturalGas.com.

CONTACT: AGL Resources, Atlanta Nick Gold, 404/584-3457 Cell: 404/275-9501 ngold@aglresources.com or Martha Monfried, 908/289-5000 ext. 5521 Cell: 973/885-7508 mmonfrie@aglresources.com

SOURCE: AGL Resources