Virginia Natural Gas Urges Customers to Conserve and Weatherize Homes to Maximize Efficiency and Minimize Bills During the Upcoming Heating Season

October 12, 2005

NORFOLK, Va. – Oct. 12, 2005 – Virginia Natural Gas, a subsidiary of Atlanta-based AGL Resources (NYSE: ATG), urges its customers to follow a few easy and low-cost steps to save money on their 2005-2006 heating bills, which energy experts predict could be 48 percent higher this winter.

“Virginia Natural Gas has ample supplies of natural gas for the upcoming winter heating season,” said Hank Linginfelter, president of Virginia Natural Gas. “However, not being able to predict what mother nature will bring, we’re concerned about the impact of unprecedented energy prices on our 258,000 customers in the Norfolk and the Hampton Roads area.”

The Energy Information Administration (EIA) today issued its winter forecast projecting higher increases for all energy sources used to heat homes. The increase is largely due to supply imbalances in the market in the aftermath of two major hurricanes – Katrina and Rita – that impacted the Gulf area where most of the East Coast’s natural gas supply originates.

According to the EIA, residential-per-household expenditures for fuels this winter compared to last winter, assuming a medium-speed recovery from Katrina and Rita will increase 48 percent nationwide for natural gas. The typical consumer nationwide will spend approximately $350 more to heat their homes this winter, according to EIA’s short-term energy outlook report.

“We are doing everything we can to manage costs and deliver reliable supplies, working with governmental agencies and energy assistance organizations to help those in need,” added Linginfelter. “We want our customers to do everything possible to maximize energy efficiency through conservation and weatherization to minimize their bills. We are encouraging them to take the necessary steps now to weatherize their homes before cooler temperatures arrive.

“A combination of conservation and weatherization in addition to using natural gas heating systems and appliances offers homeowners the highest total energy efficiency,” added Linginfelter.

While the wholesale cost of natural gas has increased dramatically over the past few months as a result of Katrina and Rita, natural gas utilities make no profit from the wholesale gas they purchase to meet customer demand. Utilities, such as Virginia Natural Gas, are only allowed to earn revenue through delivery charges, which generally make up 20 percent of customer bills and are based on rates filed and approved by regulators.

Virginia Natural Gas recommends these and other conservation and weatherization tips at www.virginianaturalgas.com to help customers minimize their energy bills:

• Have furnaces checked by a Qualified Gas Contractor to make sure they are working at optimum capacity. Now is a good time to have other fuel-burning appliances such as natural gas stoves and water heaters examined as well.
• Replace old, outdated appliances with high-efficiency natural gas models. When buying new appliances, compare energy efficiency ratings and annual operating costs.
• For safety’s sake, make sure smoke alarm and carbon monoxide detectors are working. Have an alarm and a detector on each floor of a home. Check the batteries regularly.
• Set thermostats at 65 degrees during the winter and at 58 degrees when away from the house for more than a few hours. Bear in mind that warmer temperatures are recommended for homes with ill or elderly persons or infants.
• Turn down thermostats automatically without sacrificing comfort by installing an automatic setback or programmable thermostat. Heating bills can be cut by as much as 10 percent per year by turning thermostats back 10 to 15 percent for eight hours per day.
• Change the disposable filters in furnaces before turning them on for the winter. Change the filters once a month during the heating season. Use receipt of monthly energy bills as a reminder.
• Warm air rises, so use registers to direct warm airflow across floors.
• Close vents and doors in unused rooms and close dampers on unused fireplaces.
• Set the water heater temperature at 120 degrees. This will reduce water heating bills without sacrificing comfort.
• Install water-flow restrictors in showerheads and faucets to save on hot water. Take showers instead of baths. Showers use less hot water.
• Run washing machines and clothes dryers with a full load. Wash clothes in cold or warm water instead of hot.
• Use passive solar energy by opening drapes and blinds during the day. Close them at night to retain heat.
• Check to see if the attic and basement have the recommended levels of insulation. If the basement is unfinished, the floor above it should be insulated.
• Install storm or thermal windows and doors or double-paned glass.
• Insulate pipes so they won’t freeze.
• Add weather-stripping and caulking to windows and doors. As much as 30 to 40 percent of a house’s energy load is attributed to outside air penetrating the home.
• Add weather-stripping tapes that adhere directly to door and window frames for a tight seal. Add a door sweep for more insulation.
• Wear layers of clothing or insulated clothing indoors.
• Put extra blankets or down comforters on beds.

Virginia Natural Gas also encourages and works with customers to help them obtain assistance to pay their energy bills. These include non-profit organizations and state and local agencies which offer a variety of programs listed below to assist qualified individuals with their natural gas bills.

Low Income Home Energy Assistance Program (LIHEAP) LIHEAP provides financial benefits to help eligible individuals with their home energy bills. Eligibility is based on household income and responsibility for paying heating costs. Even if heat is included in the rent, customers may qualify. LIHEAP will take applications from Nov. 1, 2005 through March 31, 2006. Note that if a customer qualified for LIHEAP last year, they still must reapply. Call toll-free at 1-866-674-6327 for energy assistance referral.

EnergyShare Energy Assistance ProgramBeginning in January, if you need help with your energy payments and have exhausted all alternatives available through social services, you may be eligible for help from our EnergyShare program. This program is administered through The Salvation Army. Call The Salvation Army to make an appointment. Walk-ins are not accepted.

South Hampton Roads, call 543-8100
Monday - Friday
9:00 a.m. - noon and 1 - 3 p.m.

Suffolk, call 539-5201
Monday - Thursday
9:00 a.m. - noon and 1 - 4 p.m.

On the Peninsula, call 838-4875
Monday - Friday
9:00 a.m. - noon and 1 - 4:30 p.m.

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 258,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.
 About AGL Resources AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.3 million customers in six states through its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland. A Fortune 1000 company that ranks number 46 in the Fortune gas and electric utilities sector, AGL Resources reported 2004 revenue of $1.8 billion and net income of $153 million. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the East and Midwest. As a 70 percent owner in 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. For more information, visit www.aglresources.com.

CONTACT: AGL Resources Jose Simon, 757-466-5407 jsimon@aglresources.com or Nick Gold, 404-584-3457 Cell: 404-275-9501 ngold@aglresources.com   

SOURCE: AGL Resources