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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 25, 1998
AGL RESOURCES INC.
(Exact Name of Registrant as Specified in Charter)
GEORGIA 1-14174 58-2210952
(State or Other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation) Identification No.)
303 PEACHTREE STREET, N.E., ATLANTA, GEORGIA 30308
(Address of Principal Executive Offices) (Zip Code)
(404) 584-9470
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On June 25, 1998, Atlanta Gas Light Company ("AGLC"), the principal
operating subsidiary of AGL Resources Inc., issued a press release announcing
the decision by the Georgia Public Service Commission (the "PSC") in connection
with the rate case filed by AGLC in November 1997 and its election to be
regulated under the terms of the Georgia Natural Gas Competition and
Deregulation Act. The PSC ruling provides, among other things, a new rate design
for AGLC's services that will levelize customer delivery costs; a reduction in
AGLC's base rates; provisions to support continued economic development in the
public interest; market-based prices for interruptible gas sales; guidelines
covering how the system will operate in a competitive market; and the
opportunity for AGLC's current customers to purchase natural gas from a marketer
of choice at competitive prices. The decision is not final until the PSC issues
a written order.
ITEM 7. EXHIBITS
99 Form of Press Release, dated June 25, 1998. See the Exhibit Index on page
3 hereof.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AGL RESOURCES INC.
(Registrant)
Date: June 25, 1998 /s/ J. Michael Riley
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J. Michael Riley
Senior Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99 Form of Press Release, dated June 25, 1998
-3-
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EXHIBIT 99
FOR IMMEDIATE RELEASE CONTACT: Ross Willis
June 25, 1998 (404) 584-3769
COMPETITION APPROVED FOR NATURAL GAS CUSTOMERS IN GEORGIA
A decision was made today by the Georgia Public Service Commission (PSC) in
a landmark proceeding designed to open Georgia's natural gas markets for
marketers to sell natural gas directly to more than 1.4 million Georgia
customers.
The decision was in response to a filing last November by Atlanta Gas Light
Company (AGLC), the principal subsidiary of AGL Resources Inc. (NYSE: ATG) and
the largest distributor of natural gas in the Southeast.
The proposal filed by AGLC followed the guidelines of the Natural Gas
Competition and Deregulation Act, signed into law by Georgia Governor Zell
Miller last year. The law was passed unanimously by the Georgia General
Assembly.
"Bringing in competition will benefit customers," said Walter M. Higgins,
president of AGL Resources. "We do not agree with everything in the PSC
decision. But we believe the remaining issues will be resolved and that
ultimately Georgia's approach to competition will serve as a model nationwide."
"Before they voted, the PSC said that they fully expect parties in this
case to ask for reconsideration because of the complex nature of the many issues
involved," said Catherine Land-Waters, acting president of AGLC. "We agree and
expect to file a request for reconsideration as soon as possible to work out the
details of a plan that will be successful in bringing the benefits of
competition to Georgia customers."
Land-Waters summarized a number of key aspects of today's PSC decision:
. a new rate design for AGLC's services that will levelize customer delivery
costs throughout the year;
. a reduction in base rates of around $7 million per year;
. provisions to support continued economic development in the public interest;
. market-based prices for interruptible gas sales; and
. guidelines covering how the system will operate in a competitive marketplace.
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The PSC voted to accept AGLC's current allowed return on equity at 11%. The
decision also continued traditional rate-of-return regulation.
Beginning November 1, customers of AGLC will have the opportunity to
purchase their natural gas directly from a marketer of choice at competitive
prices. AGLC will continue delivering gas to all customers regardless of which
marketer a customer chooses. AGLC will continue to earn its return from its
investment in the delivery system. AGLC continues to be responsible for assuring
the safe and reliable operation of the gas delivery system. During the
transition to a fully competitive marketplace, AGLC will purchase gas supplies
for customers until customers choose a marketer.
During the transition to competition, customers will be able to choose
their own natural gas marketer or continue to purchase gas and delivery service
from AGLC. Eventually all customers will purchase gas from marketers, and then
AGLC no longer will sell gas.
AGLC will continue to own and operate the gas delivery system and to be
responsible for the safe and reliable delivery of natural gas and related
services to more than 1.4 million households and businesses in 231 Georgia
communities.
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