Living Our Values inRegulatory Relations

Bryan Batson

Vice President Regulatory Compliance and Affairs

2003 Analyst/Investor Conference 2

AGL Resources’ 2003 Goals and Values• Demonstrate a

compelling proposition for our stakeholders:•Customers•Shareholders•Communities•Regulators•Employees

• Achieve this through applying our core values to all we do

inside

the

lines

honesty

generosityof spirit

valueseeking

2003 Analyst/Investor Conference 3

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Tennessee Virginia Georgia

2003 Energy Assistance Contributions

$0

$5

$10

$15

$ M

illi

on

s

Virginia Tennessee Georgia

Asset Management Sharing(since inception)

generosityof spirit

generosityof spirit

2003 Analyst/Investor Conference 4

$76.16

$29.19

$0

$20

$40

$60

$80

$ p

er C

ust

om

er

Original Projection Actuals

Pipeline Replacement

valueseekingvalueseeking

Virtue is its own rewardVirtue is its own reward

6968

594

6193

471

5701

651

4431

444

2966

289

0

1000

2000

3000

4000

5000

6000

7000

8000

Da

ma

ge

s

1999 2000 2001 2002 2003 YTDYear

Total 3rd Party Damages

VNG

AGLC-CNG

Environmental Recovery Program

05

1015202530354045

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ in M

illions

Annual Costs - High End of Range

Annual Costs Expected

Recovery/ Revenue

2003 Analyst/Investor Conference 5

Service Standard Performance

valueseekingvalueseeking

80%92%

100%

6%0%

0%10%20%30%40%50%60%70%80%90%

100%

Cal

l Cen

ter

Res

pons

eT

ime

For

ecas

ting

- F

irmD

eman

dF

orec

ast

Acc

urac

y

For

ecas

ting

- M

onth

lyN

etP

erce

ntag

e

Service Standards - Monthly Measures

Benchmark

Avg Jul-Sep35

26.33

60

35.47

0

10

20

30

40

50

60

Min

ute

s

Average FSR LeakResponse Time

Average DistributionLeak Response Time

Leak Response Time - Monthly Measure

Benchmark

Avg Jul-Sep 03

2003 Analyst/Investor Conference 6

AGL Resources Utility Operations

Projections Ending December 31, 2003

$93

$332

$1,106

$180

11.08%11.38%

8.97%

$0

$200

$400

$600

$800

$1,000

$1,200

Total CGC Total VNG Total AGLC

Ra

te B

as

e (

in $

mill

ion

s)

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

11.00%

11.50%

12.00%

12.50%

13.00%

Re

turn

On

Eq

uit

y

Rate Base

PRP

ROE

Authorized Returnsvalueseekingvalueseeking

2003 Analyst/Investor Conference 7

Managing Issues to AvoidControversy

• Capacity Planning

• Tennessee Tariff Changes

• Asset Management Reporting

• Grey Book – Continuous Disclosure

No Surprises!No Surprises!

inside

the

lines

inside

the

lines

honestyhonesty

2003 Analyst/Investor Conference 8

Calendar of Major Regulatory Filings

12/03 1/04 2/04 3/04 4/04 5/04 6/04 7/04 8/04 9/04 10/04 11/04 12/04

Tentative: CGC Filing

Expected effective date of CGC Tariffs

AGLC Filing(effective date of tariffs either 12/04 or 5/05 TBD)

Tentative:VNG combined filing for WNA and AIF

AGLC Capacity Supply Plan Filing

2003 Analyst/Investor Conference 9

What’s On the Horizon for 2004?

• Tennessee– Bad debt amortization– 2004 Rate Case

• Virginia– Propane plant authorization– AIF/WNA

• Georgia– Capacity Plan– Test period for 2005 Rate Case

Working With Regulators Every DayWorking With Regulators Every Day