VNG Sharing Plan Extended Until 2009Audit finds asset management arrangement benefits customers providing millions in gas cost savings since 2000

November 1, 2005

NORFOLK, VA – Nov. 1, 2005 - Virginia Natural Gas (VNG), a subsidiary of AGL Resources (NYSE: ATG), today announced that a revised asset management agreement between VNG and Sequent Energy Management, another AGL Resources company, has been approved and extended to 2009 by the Virginia State Corporation Commission (VSCC), which regulates utilities in Virginia.

“The extension is an endorsement of our gas purchase practices since 2000,” said Hank Linginfelter, president of VNG. “Since its onset, the asset management plan has provided tremendous benefits to VNG customers saving them nearly $12 million in gas cost purchases in the first four years alone.

“Staff conducted a thorough audit of Sequent and VNG's asset management program,” Linginfelter added. “VNG customers will continue to benefit from reliable natural gas service and substantial sharing of value from taking advantage of Sequent’s substantial expertise in managing utility assets throughout the Eastern United States.

Managed by Sequent, VNG’s progressive value-sharing plan saved VNG customers more than $3 million in 2004. The savings realized during 2004 were shared in early 2005 in the form of reduced natural gas costs charged to VNG’s customers. Shared savings for 2005 that will be applied to 2006 gas purchase costs are calculated in November. In the first four years of the plan beginning in 2000 through 2004, Sequent purchased more than $500 million of natural gas supplies on behalf of VNG’s customers

Our expertise in managing natural gas assets and navigating market volatility has resulted in shared savings with VNG customers of about $12 million to date,” said Peter Tumminello, senior vice president of Asset Management for Sequent Energy Management. “With Sequent overseeing VNG's assets over the next several years, we are committed to generating value that should result in additional savings for VNG’s customers,” added Tumminello.

“During its audit and investigation Staff identified certain issues of concern related to the current Agreement,” according to the Staff Report filed with the VSCC on Oct. 11, 2005. "The Staff, VNG, and Sequent worked together to resolve all of these issues by revising the Agreement to address Staff’s concerns.”

Tumminello said, “The outcome of the VSCC’s audit has led to revisions in the Sequent - VNG asset management agreement including an extension of Sequent’s services to VNG into 2009. As part of this resolution, Sequent agreed to make an up-front payment of $1 million via VNG’s actual cost adjustment in the first quarter of 2006. This will provide VNG’s customers an additional gas cost reduction, giving them extra relief in the face of energy costs that are anticipated to be higher than ever this winter.”

About Virginia Natural Gas Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and distribution services to 265,000 customers in southeast Virginia. For more information, visit www.VirginiaNaturalGas.com.

About Sequent Energy Management Sequent Energy Management, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), is a Houston-based entity focusing on asset management and optimization, producer services, wholesale marketing and risk management. For more information, visit www.SequentEnergy.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.

Forward-Looking Statements Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements. Forward-looking statements involve matters that are not historical facts and because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "can," "could," "estimate," "expect," "forecast," "future," "indicate," "intend," "may," "plan," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors - many beyond our control - that could cause results to differ significantly from our expectations. Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products, impact of changes in state and federal legislation and regulation, actions taken by government agencies on rates and other matters, financial market conditions and general economic conditions, impacts of changes in weather upon the temperature-sensitive portions of the business, and other factors which are listed in greater detail in our filings with the Securities and Exchange Commission, which we incorporate by reference in this press release. Forward-looking statements are only as of the date they are made, and we do not undertake any obligation to update these statements to reflect subsequent changes.
CONTACT: Virginia Natural Gas Jose Simon , 757-466-5407 jsimon@aglresources.com or AGL Resources Martha Monfried, 908-289-5000 x 5521 Cell: 973-885-7508 mmonfrie@aglresources.com   

SOURCE: AGL Resources