Atlanta Gas Light Urges Customers to Conserve and Weatherize Homes to Maximize Efficiency and Minimize Bills During the Upcoming Heating Season; Launches $1 Million Home and Heart Warming Project

Business Wire, Oct 12, 2005

ATLANTA -- Atlanta Gas Light, 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 56 percent higher in the South this winter.

"Atlanta Gas Light has ample supplies of natural gas for the upcoming winter heating season," said Suzanne Sitherwood, president of AGL. "However, not being able to predict what mother nature will bring, we're concerned about the impact of unprecedented energy prices on our 1.6 million customers throughout Georgia."

The Energy Information of America (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 25 percent of the nation'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 56 percent increase in the South. 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 Sitherwood. "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."

Atlanta Gas Light recently launched the $1 million Home and Heart Warming Project - a joint effort with the Georgia Environmental Facilities Authority and Resource Service Ministries to assist qualified Georgia families in repairing or replacing their non-functioning furnaces, water heaters, and when necessary for safety reasons, cook top and stove units. For additional information about this and other local, state and federal assistance programs, Atlanta Gas Light is encouraging customers to contact United Way of Metro Atlanta by dialing 2-1-1 or by visiting www.211.org.

"Depending on the weather, this winter's heating season may be especially difficult," said Sitherwood. "The Home and Heart Warming Project is one way we can offer assistance. We're also looking at other opportunities to direct corporate donations where they are most needed.

"A combination of conservation and weatherization in addition to using natural gas heating systems and appliances offers homeowners the highest total energy efficiency," added Sitherwood. "Air from a natural gas furnace is up to 25 degrees warmer than air from an electric heat pump.

"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," Sitherwood 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 Atlanta Gas Light, 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.

Atlanta Gas Light recommends these and other conservation and weatherization tips, available at www.atlantagaslight.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. This can cut heating bills 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 your furnace before turning it on for the winter. Change the filters once a month during the heating season. Use receipt of monthly energy bills as a reminder.