Firm ratepayers, including residential and commercial customers, are not at risk for paying the cost of the program. The capital used to seed the market would be appropriated from the Universal Service Fund (USF), which is funded from rates paid by industrial customers, proceeds shared by energy asset management firms and refunds from pipeline suppliers. AGL annually requests funds from the USF for line extensions to serve new customers and new regions of the state. The recessed economy has stalled normal USF line extensions that come with growth, leaving sufficient proceeds in the fund that can be used to foster this market development.
Contracts between AGL and potential CNG retailers will occur following a request for proposal (RFP) process that will begin early next year. The RFP process should last into the third quarter of 2012 with construction proceeding later in the year.
Construction and maintenance of CNG facilities is not new to Atlanta Gas Light. The company installed its first CNG equipment at a public station in downtown Atlanta in the early 1990s. In 1996, AGL began providing CNG service to MARTA (Metropolitan Atlanta Rapid Transit Authority) when the transportation agency converted its bus fleet to CNG in advance of Atlanta hosting the Summer Olympics. Currently, the company owns equipment at 10 private access CNG stations located on customer-owned premises and has installed numerous others. The company also provides maintenance services to about 30 additional fleet customers who own their own CNG stations.
About Atlanta Gas Light
Atlanta Gas Light, a wholly owned subsidiary of AGL Resources (NYSE: AGL), provides natural gas delivery service to more than 1.5 million customers in Georgia. In operation since 1856, the company is one of the oldest corporations in the state. For more information, visit www.atlantagaslight.com.
About AGL Resources
AGL Resources (NYSE: AGL), an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates two high-deliverability natural gas storage facilities: Jefferson Island Storage & Hub near the Henry Hub in Louisiana and Golden Triangle Storage in Texas. For more information, visit www.aglresources.com.