Elizabethtown Gas Urges Customers to Conserve and Weatherize Homes to Maximize Efficiency and Minimize Bills During the Upcoming Heating SeasonDonates $100,000 to Community Action Agencies to Help

October 12, 2005

UNION, N.J.  – Oct. 12, 2005 – Elizabethtown 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 today predicted could be 32 percent higher in the Northeast this winter.

“Elizabethtown Gas has ample supplies of natural gas for the upcoming winter heating season,” said Don Carter, vice president of Elizabethtown Gas. “However, not being able to predict what mother nature will bring, we’re concerned about the impact of unprecedented energy prices on our 265,000 customers in New Jersey.”

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 Northeast’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 with a 32 percent increase in the Northeast. The typical consumer nationwide will spend approximately $350 more to heat their homes this winter, according to today’s EIA 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 Carter. “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 winter arrives.

“A combination of conservation and weatherization in addition to the use of natural gas heating systems and appliances offers homeowners the highest total energy efficiency,” added Carter. “Air from a natural gas furnace is up to 25 degrees warmer than air from an electric heat pump. The cleanest fossil fuel, there’s no waiting for a delivery or worry about its impact on the environment.

“Natural gas water heaters are less expensive than electric models to operate, and they heat water up to twice as fast: Homeowners can cut water heating costs by 50 percent by using natural gas,” Carter said.

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. The price per cubic foot is passed directly to the ratepayers with no markup. Utilities, such as Elizabethtown 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.

Tomorrow, Thursday, Oct. 13, Elizabethtown Gas will hold the second of two energy information meetings the company is hosting this week for elected and community officials to discuss high prices, conservation measures and energy assistance programs to help their constituents this winter. The meeting will be from 9:30 a.m. to noon at the Elizabethtown Gas headquarters at 1085 Morris Ave. in Union in the company’s Union Service Area, which includes Union and Middlesex counties.

“We’re all concerned about high energy prices,” said Carter. “Getting everyone together to discuss what we can do to manage costs, encourage conservation and provide energy assistance should help us to work together to provide customers the assistance they need to manage their energy bills this winter.

“We’re also pleased to be able to donate $100,000 to five community agencies to support their energy assistance efforts,” he added.

NORWESCAP serving Hunterdon, Morris, Sussex and Warren counties, PROCEED Inc. serving Union County, the Puerto Rican Action Board (PRAB) serving Middlesex County, as well as United Way 211 and New Jersey SHARES, Inc. serving the state will each receive a $20,000 grant. This is in addition to the $150,000 in grants from the AGL Resources Private Foundation that Elizabethtown Gas presented to NORWESCAP, PROCEED and the PRAB on March 4, 2005 to help low-income seniors obtain new or refurbished heating systems.

During tomorrow’s meeting, Elizabethtown Gas will provide an overview of natural gas prices and supplies in New Jersey, including what the company is doing to control costs. Payment plans and weatherization improvement benefits that are available to eligible customers will also be discussed. Representatives from state agencies will explain local, state and federal energy assistance programs and how they Low Income Home Energy Assistance Program (LIHEAP) assistance requests are processed. Attendees will receive energy assistance program material which details the major sources of funding, the programs, the eligibility requirements and a plan of action to increase awareness.

Elizabethtown Gas recommends these and other conservation and weatherization tips, which are available at www.elizabethtowngas.com, to help customers minimize their energy bills:

• Have furnaces checked by a certified HVAC 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 reduced by as much as 10 percent per year by turning thermostats back 10 percent 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.

Beyond this week’s energy meetings, Elizabethtown Gas 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.

Low Income Home Energy Assistance Program (LIHEAP)
LIHEAP provides financial benefits to help eligible individuals with the costs of their home heating bills. The winter program opens for applications Nov. 1, 2005. Eligibility is based on household income, household size and responsibility for paying heating bills. The credit approved will appear on customer’s natural gas bills. They can dial 2-1-1 from any phone to find out where to get and file an application.

Universal Service Fund (USF)
USF provides monthly credits on a customer’s utility bill if it has been determined that their energy bills exceed a certain percentage of household annual income. Customers could qualify for up to $1800 each year. Applications can be filed any time of the year. Call 1-866-240-1347.

USF Fresh Start
This is an automatic enrollment for first-time USF customers whose past due amount is greater than $60. Customers are required by Elizabethtown Gas to only pay their current bill on time every month for 12 months, and their past due balance will be completely erased. No need to apply; Elizabethtown Gas will send customers a letter if they are eligible.

New Jersey Comfort Partners^TM
This program provides free home analysis, energy education and weatherization measures. Eligibility is based on income. Call 1-888-773-8326.

Lifeline Credit Program
Lifeline provides an annual grant – $112.50 each for natural gas and electric bills – for eligible seniors, 65 and older and adults 18 and older who receive SSI (Supplemental Security Income). Customers must file an application to see if they meet eligibility requirements. They should be sure to ask how often they need to update their information in order to continue these benefits. If they are receiving SSI, a monthly utility benefit of $18.75 will automatically be included in their SSI checks. Call 1-800-792-9745.

NJ SHARES
This program provides a one-time grant for persons in a temporary financial crisis who exceed the income guidelines for other energy assistance programs. Call 1-866-657-4273.

To learn if they are eligible for assistance, Elizabethtown Gas encourages customers to dial 2-1-1, visit www.211.org or contact a local agency.

About Elizabethtown Gas Elizabethtown 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 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.

SOURCE: AGL Resources

AGL Resources
Martha Monfried, 908-289-5000 x 5521
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mmonfrie@aglresources.com
or
Nick Gold, 404-584-3457
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