Elizabethtown Gas Seeks to Implement Program to Replace Large-Diameter Elevated Pressure Cast Iron Main April 26, 2005
UNION, N.J., April 26, 2005 – Elizabethtown Gas, a subsidiary of AGL Resources Inc. (NYSE: ATG), today filed a petition with the New Jersey Board of Public Utilities (NJBPU) to establish a Pipeline Replacement Program (PRP) Recovery Rider to allow for the recovery of costs associated with the accelerated replacement of about 88 miles of elevated pressure 8-inch to 12-inch cast iron main. The company has had an ongoing program to replace small diameter (4-inch to 6-inch) bare-steel and cast-iron main, which is expected to be completed in 2008.
“Accelerating the replacement of the 8-inch to 12-inch main will further enhance the safety and reliability of our natural gas distribution system,” said Eric Martinez, vice president and general manager of Elizabethtown Gas. “It also should promote economic development by replacing aging infrastructure that dates back to the late 1800’s to the 1950’s in communities such as Woodbridge, Edison, Union, Westfield, Scotch Plains, Rahway, Clark and Elizabeth.”
The total cost of the three-year PRP initiative is expected to be $42 million. Beginning in September 2005, the company’s PRP proposal would defer the PRP costs incurred until October 2006, at which time recovery through the rider program of about $1 a month per average customer bill would begin and continue for three years through the effective date of new base rates. Pursuant to the NJBPU order approving AGL Resources’ acquisition of NUI Corporation and its subsidiary Elizabethtown Gas in November 2004, new base rates for Elizabethtown Gas are expected to begin in January 2010.
About Elizabethtown GasElizabethtown Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to more than 265,000 residential, business and industrial natural gas customers in New Jersey. In operation since 1855, the company serves parts of Union, Middlesex, Sussex, Warren, Hunterdon, Morris and Mercer counties. For more information, visit www.elizabethtowngas.com.
About AGL ResourcesAGL 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.
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SOURCE: AGL Resources