Chattanooga Gas Company Sharing Plan Saves $1.26 Million for Customers

March 2, 2004

Chattanooga, TN - March 2, 2004 - Chattanooga Gas Company (CGC), a subsidiary of AGL Resources Inc. (NYSE: ATG), announced today that its Asset Management Plan, managed by Sequent Energy Management, another AGL Resources company, saved CGC customers $1.26 million in 2003. The benefits realized during 2003 will be shared throughout 2004 starting in April in the form of reduced gas costs. The savings equate to an annual average of approximately $21 per customer.

"The $1.26 million reduces overall gas costs for our residential and small business customers," said Steve Lindsey, vice president of operations for CGC. "The reduction does not appear as a line item on the gas bill but is reflected in the gas cost calculation applied to the customer's bill. We are pleased to be able to deliver cost savings to our customers."

Sequent has managed CGC's assets since May 2001, with the goal of optimizing CGC's utility assets and sharing the savings with customers.

"Asset managers who focus on optimizing physical assets on behalf of customers are increasingly playing a key role in the way utilities manage their businesses," Lindsey said. "The savings at CGC in 2003 illustrate the value that can be added to the business and the customers that are served."