Benefits expected for customers of Virginia Natural Gas as a result of new law allowing long-term supply contracts and infrastructure for natural gas
Virginia Natural Gas Applauds New Law that Encourages Strategic Natural Gas Investments
April 3, 2014
VIRGINIA BEACH, Va. – April 3, 2014 – Virginia Natural Gas (VNG), a subsidiary of AGL Resources (NYSE: GAS), expects its customers to benefit from legislation signed into law by Gov. Terry McAuliffe that enables the state’s natural gas utilities, including VNG, to acquire long-term supplies of natural gas and build infrastructure to facilitate the delivery of low-cost shale and coalbed methane gas to Virginia homeowners and businesses.
Under the terms of the legislation, VNG could obtain up to 25 percent of its annual demand for natural gas through long-term contracts or other investments. Recovery on investments would be based upon the utility’s authorized return on rate base, and approved in advance by the Virginia State Corporation Commission.
“This is another in a series of strong public policy moves by a state government that understands the opportunity to support Virginia’s economic growth around American, abundant, and affordable natural gas – this legislation can help to alleviate transportation constraints, capture long-term value to reduce costs for our customers, and help to ensure price stability as well as supply reliability,” said Jodi Gidley, president, Virginia Natural Gas.
Over the coming months, Virginia Natural Gas will work to identify projects that qualify under this new legislation, with the goal of providing meaningful and long-lived benefits for its customers. Virginia Natural Gas is a subsidiary of AGL Resources, which serves approximately 4.5 million utility customers through its regulated natural gas distribution companies in seven states.
"Passage of the law signifies a recognition that this is the right time to plan for and build strategic assets that can bring lower-cost energy, economic development opportunities and other benefits to Virginia’s citizens and businesses for decades to come,” said Hank Linginfelter, executive vice president of distribution operations, AGL Resources.
The legislation, sponsored by Sen. Frank Wagner (R-Virginia Beach) and Del. Tim Hugo, (R – Centreville), passed the Virginia General Assembly unanimously in February. It is designed to encourage utilities to build pipelines and other infrastructure in order to bring shale and coalbed methane gas into the state’s markets, preferably under long-term arrangements that potentially will reduce natural gas supply costs and reduce price volatility for consumers.
About Virginia Natural Gas
Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: GAS), provides retail natural gas sales and distribution services to 275,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.
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, midstream operations and cargo shipping. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves approximately 630,000 retail energy customers and approximately 1.2 million customer service contracts 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, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a member of the S&P 500 Index.
This press release contains forward-looking statements. 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, the quotes from Jodi Gidley and Hank Linginfelter and statements on the impact and benefits under the new legislation.
Actual results may differ materially from those suggested by the forward-looking statements for a number of reasons including, but not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal legislation and regulation including any changes related to climate change; actions taken by government agencies on rates and other matters; concentration of credit risk; utility and energy industry consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, unexpected change in project costs, including the cost of funds to finance these projects; limits on pipeline capacity; the impact of acquisitions and divestitures; our ability to successfully fully integrate operations that we have or may acquire or develop in the future, direct or indirect effects on our business, financial condition or liquidity resulting from any change in our credit ratings, or any change in the credit ratings of our counterparties or competitors; interest rate fluctuations; financial market conditions, including disruptions in the capital markets and lending environment; general economic conditions; uncertainties about environmental issues and the related impact of such issues, including our environmental remediation plans; the impact of new and proposed legislation in Illinois; the impact of changes in weather, including climate change, on the temperature-sensitive portions of our business; the impact of natural disasters, such as hurricanes, on the supply and price of natural gas and on our cargo shipping business; acts of war or terrorism; the outcome of litigation; and other factors which are provided in detail in our filings with the Securities and Exchange Commission, which we incorporate 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.