AGL Resources Urges President Bush to Sign Emergency LIHEAP BillPraises Congress and Governors for Supporting Legislation

March 21, 2006

ATLANTA--(BUSINESS WIRE)--March 21, 2006--Atlanta-based AGL Resources (NYSE: ATG) today urged President Bush to immediately sign the emergency legislation Congress approved late last week to increase this year's Low Income Home Energy Assistance Program (LIHEAP) funding by $1 billion to a total of $3.2 billion for the 2006 fiscal year from $2.2 billion in 2005.

"Members of Congress and the governors of states who championed this cause are to be thanked for funding LIHEAP at a 20-year high level and making sure it will be distributed more equitably to help those in need facing higher than ever home heating bills this winter," said Lindsay Thomas, senior vice president of governmental relations at AGL Resources and former U.S. congressman.

"If Congress could get the bill out in a week, I'm confident the President will immediately sign the LIHEAP legislation and distribute the emergency funds as quickly as possible," added Thomas.

The additional $1 billion level of funding triggers a "new" formula when LIHEAP grant appropriations are above $1.975 billion in a given year, which would allow for the distribution of LIHEAP grant funds according to "each state's share of expenditures by low income households for home energy." Half of the $1 billion increase would be allocated to "formula funding" while the other half would be allocated to "emergency funding" distributed under the president's discretion. In its entirety, the $3.2 billion appropriation includes nearly $2.5 billion for the base program and another $700 million in emergency funding.

While giving additional LIHEAP funding to all of the states, the new formula would more than double the LIHEAP allocations for many states. Below is a chart estimating the funding that will go to the states where AGL Resources utility subsidiaries operate. Virginia's allocation is expected to increase by 113 percent or $43 million; Florida, Georgia and Maryland's allocations are estimated to increase by 112 percent or $30 million, $24 million and $35 million, respectively; Tennessee's allocation is estimated to increase by 97 percent or $26 million; while New Jersey's allocation is estimated to increase by 28 percent or $21 million.

State	Current FY 2006 Appropriations ($)	Estimated Total FY 2006 Appropriations After Additional $1 Billion is Signed into Law ($)	Gains in State Funding From the Additional $1 Billion ($)
Florida	26,534,274	56,381,967	29,847,693
Georgia	20,979,412	44,578,590	23,599,178
Maryland	31,331,801	66,576,104	35,204,303
New Jersey	75,987,987	97,047,082	21,059,095
Tennessee	27,032,554	53,307,773	26,275,219
Virginia	38,165,637	81,097,139	42,931,501

"We're pleased to have worked with the Southern Governors Association and the American Gas Association to get the LIHEAP legislation approved by Congress," said Thomas. "Everyone's efforts over the past three years are coming to fruition. Congress and the governors are to be applauded for the additional funding levels and the new formula, which is more equitable to all states. When you spend federal funds, you are spending funds contributed by taxpayers across the country, so it's only fair that those funds are equitably distributed."

The House of Representatives approved the LIHEAP legislation on March 16 following the Senate's lead on March 7. The funds will come out of the LIHEAP budget for FY 2007.

AGL Resources subsidiaries are working with local community action agencies and have already donated close to $1 million for assistance to low income customers this winter.

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. Ranked by Forbes as one of the 10 Best Managed Utilities and No. 250 in the Forbes Platinum 400 in 2006 as well as a Fortune 1000 company in 2005, 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 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 Gas Chattanooga Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and transportation services to approximately 61,000 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. For more information, please see www.chattanoogagas.com.

About Elizabethtown Gas Elizabethtown Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to more than 266,000 residential, business and industrial natural gas customers in New Jersey. In operation since 1855, the company serves parts of Union, Middlesex, Sussex, Warren, Hunterdon, Morris and Mercer counties. For more information, visit www.elizabethtowngas.com.

About Elkton Gas Elkton Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides delivery service to approximately 5,800 residential and business natural gas customers in the greater Elkton area, on Maryland's eastern shore. For more information, visit www.elktongas.com.

About Florida City Gas Florida City Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), serves approximately 103,000 residential and commercial natural gas customers in Florida's Miami-Dade, Brevard, St. Lucie, and Indian River counties. For more information, visit www.floridacitygas.com.
 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 261,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.

CONTACT: AGL Resources Robin Keegan, 404-584-3946 Cellular: 404-783-1758 rkeegan@aglresources.com SOURCE: AGL Resources