Virginia Natural Gas (VNG) announced the Virginia State Corporation Commission (SCC) issued an order yesterday authorizing the company to implement its proposed performance-based rate plan.
In a landmark order approving the first performance-based rate (PBR) plan for a gas utility in Virginia, the SCC found that VNG's proposal should be adopted with minor modification. By approving the modified PBR, VNG's customers' non-gas rates will be frozen for an additional five years and VNG will be able to build a new pipeline across the James River/Hampton Roads channel at an estimated $48 to 60 million.
"We are studying the SCC's approval of the company's PBR proposal as modified by the commission," said Hank Linginfelter, president of Virginia Natural Gas. "We are in the process of reviewing the SCC order and have thirty days to notify the Commission if we accept or withdraw the PBR proposal."
About AGL Resources
AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.2 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. AGL Resources reported revenue of $2.7 billion and net income of $193 million in 2005.
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 Pivotal Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.