State PSC plan encourages investment in new CNG fueling stations
ATLANTA, March 1, 2012 - As gasoline and diesel fuel prices continue to make headlines, Atlanta Gas Light Company (AGL) today issued a request for proposals (RFP) for parties interested in developing Compressed Natural Gas (CNG) fueling stations for commercial and passenger vehicles in Georgia.
Issuance of the RFP is the next step in implementing a plan approved by state utility regulators in November 2011. CNG retail prices in metro Atlanta currently average $2.39 per Gasoline Gallon Equivalent, as compared to gasoline prices averaging $3.68 per gallon.
In order to participate in the program, applicants must demonstrate they can secure the real estate for the station, develop the site consistent with local zoning, install the CNG dispensers and make other necessary site improvements, and hold contracts with fleet customers to utilize what amounts to approximately 20 percent of a proposed station's fueling capacity.
"With the issuance of our request for proposals, Georgia is one step closer to meeting the region's growing demand for CNG through the realization of the CNG infrastructure program," said Ian Skelton, Director of Atlanta Gas Light's natural gas vehicle program. "Given the strong interest in this program, qualified applicants are encouraged to apply during the initial RFP process."
Interested participants should visit www.atlantagaslight.com/cngplan for more detailed information regarding the RFP. Those interested parties will have until April 16 to submit proposals for consideration. AGL will then evaluate all submissions and work with those applicants whose proposals are accepted on the development of new CNG fueling stations which could begin by the end of the year.
The Georgia Public Service Commission (PSC) approved a five year program of investments that could total $11.57 million for new CNG fueling station infrastructure in November 2011. Depending on the size of the approved stations, AGL could support the construction of five to 10 stations. At least 75 percent of the appropriated investment will go toward stations that serve fleet customers as well as the general public.
The program is intended to create a network of CNG fueling stations throughout metro Atlanta and in other cities served by AGL throughout the state along major transportation corridors. AGL will provide CNG delivery service under a new commission-approved rate to retail station owners. A portion of the proceeds from the program would also allow AGL to offer affordable low-cost leases of home refueling appliances to individuals who own CNG vehicles.
In addition to the economical advantage of savings at the pump, CNG vehicles provide significant environmental and efficiency advantages over gasoline-fueled vehicles as they emit up to 90 percent fewer emissions and are powered by clean, domestically abundant natural gas.
About Atlanta Gas Light
Atlanta Gas Light, a wholly owned subsidiary of AGL Resources (NYSE: GAS), provides natural gas delivery service to more than 1.6 million customers in Georgia. In operation since 1856, the company is one of the oldest corporations in the state. For more information, visit http://www.atlantagaslight.com/.
About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. As the nation's largest natural gas-only distributor based on customer count, AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves more than one million retail customers through its SouthStar Energy Services joint venture and Nicor National, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a member of the S&P 500 Index. For more information, visit http://www.aglresources.com/.
Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements including, the expected number of CNG stations the Company can support the construction of and the Company's anticipated ability to offer affordable low-cost leases of home refueling appliances to individuals who own CNG vehicles. Forward-looking statements involve matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "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; the impact of changes in state and federal legislation and regulation including any changes related to climate change; actions taken by government agencies on rates and other matters; concentration of credit risk; utility and energy industry consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, unexpected change in project costs, including the cost of funds to finance these projects; limits on pipeline capacity; the impact of acquisitions and divestitures; our ability to integrate successfully operations that we have or may acquire or develop in the future, including those of Nicor, and realize cost savings and any other synergies related to any such integration, or the risk that any such integration could be more difficult, time-consuming or costly than expected; uncertainty of our expected financial performance following the recent completion of the Nicor merger; disruption from the recent Nicor merger making it more difficult to maintain relationships with customers, employees or suppliers; direct or indirect effects on our business, financial condition or liquidity resulting from any change in our credit ratings resulting from the recent merger with Nicor or otherwise or any change in the credit ratings of our counterparties or competitors; interest rate fluctuations; financial market conditions, including recent disruptions in the capital markets and lending environment and the current economic downturn; and general economic conditions; uncertainties about environmental issues and the related impact of such issues; the impact of changes in weather, including climate change, on the temperature-sensitive portions of our business; the impact of natural disasters such as hurricanes on the supply and price of natural gas; acts of war or terrorism; the outcome of litigation; and other factors which are provided in 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 to update these statements to reflect subsequent changes.
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Director - External Relations