Chattanooga Gas Customers to Benefit from Asset Management Plan Managed by Sequent$1.8 Million to Be Refunded to Customers; A 50% Increase over the Amount Refunded Last Year

June 6, 2005

CHATTANOOGA, Tenn.--June 6, 2005--Chattanooga Gas, a subsidiary of Atlanta-based AGL Resources (NYSE: ATG), announced today that its Asset Management Plan, managed by Sequent Energy Management, another AGL Resources company, saved Chattanooga Gas customers $1.8 million in 2004. The benefits realized during 2004, a 50% increase over the amount refunded last year, will be shared with customers throughout the remainder of 2005 in the form of reduced gas costs. The savings equate to an annual average savings of approximately $30 per customer.

"We are pleased to be able to pass along these cost savings to our customers," said Steve Lindsey, vice president and general manager of Chattanooga Gas. "The $1.8 million reduces the overall gas costs for our residential and small business customers. The reduction will not appear as a line item on the gas bill but will be reflected in the gas cost calculation applied to the customer's bill."

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

"Asset managers who focus on optimizing physical assets on behalf of customers are playing an increasingly vital role in the way utilities manage their businesses," Lindsey said. "These savings at Chattanooga Gas illustrate the value that can be added to the business and the customers that are served."

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.

About Chattanooga GasChattanooga Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and transportation services to approximately 62,000 customers in Hamilton and Bradley counties in southeast Tennessee. The Chattanooga Gas service area includes the communities of Chattanooga, Cleveland, Red Bank, East Ridge, Lookout Mountain and Signal Mountain. The Chattanooga Gas natural gas pipeline system delivers approximately 20 billion cubic feet of gas per year. For more information, please see www.chattanoogagas.com.

CONTACT: AGL Resources, Atlanta
Nick Gold, 404-584-3457
(cell) 404-275-9501
ngold@aglresources.com

SOURCE: AGL Resources