Virginia Natural Gas receives approval of new conservation and ratemaking efficiency planDecember 23, 2008
NORFOLK, Va. – December 23, 2008 – The Virginia State Corporation Commission (VSCC) today approved the Virginia Natural Gas (VNG) proposed conservation and ratemaking efficiency plan.
The plan calls for new energy conservation programs, coupled with a revenue adjustment mechanism, designed to assist customers in managing their energy costs.
As part of the plan, VNG will provide $6.6 million over three years in new conservation initiatives. VNG projects that customers who participate in these new programs, set to begin rolling out in early 2009, can significantly reduce their monthly natural gas usage.
Early in 2008, the Virginia General Assembly passed legislation that would allow natural gas utilities to provide conservation programs to its customers. It also moved to ensure that utilities had the appropriate rate plan so that conservation efforts would not negatively affect the ability of utilities to recover the cost of providing safe and reliable service.
“The General Assembly provided the means by which Virginia could move to the forefront of energy efficiency in the nation. Its leadership in this legislation set a clear path the Commission could follow to ensure customers meaningful tools to lower their gas bills,” said Jodi Gidley, president, Virginia Natural Gas.
“This is great news for consumers, particularly given the challenging economic conditions,” said Gidley. “Our new program will reward customers who embrace conservation initiatives and choose to invest in energy efficient appliances.”
Today, about two thirds of the typical residential customer’s bill covers the cost of natural gas delivered to the customer with the remainder covering VNG’s distribution costs.
The plan separates the recovery of VNG distribution costs from gas consumption through the use of a revenue adjustment mechanism, allowing the utility to recover the cost of providing reliable service based on normal customer usage that had been previously determined by the VSCC.
“This new plan encourages the utility to promote conservation and energy efficient choices, allowing us to offer more tools to customers to manage their energy usage and costs,” said Gidley.
The new programs include: a community outreach and customer education initiative; incentives to replace air filters and upgrade to programmable thermostats, to install higher efficiency natural gas home heating furnaces and water heaters, and to schedule seasonal heating and air conditioning check-ups; and home weatherization for qualifying low-income customers. Also featured is a pilot program to encourage builders to install highly efficient ENERGY STAR® -rated natural gas appliances in new homes.
More information about these programs will be available in the next few weeks through communications included in bills and at VNG’s website.
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 more than 270,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.
About AGL Resources
AGL Resources (NYSE: ATG), an Atlanta-based energy services company, serves more than 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 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.
Contact: Virginia Natural Gas / AGL Resources
Tami Gerke
Office: 404-584-3873
24-Hour Media Line: 1-866-757-6646
tgerke@aglresources.com