Chattanooga Gas to Lower Gas Prices on November 1.

CHATTANOOGA, Tenn. -- Chattanooga Gas, a subsidiary of AGL Resources (NYSE: ATG), announced that on November 1, its customers will see a 34 percent reduction in the natural gas portion of their bills compared to one year ago.

Based on the new rates, the average residential customer who

"We are relieved natural gas prices have dropped off so significantly in the past few months and that we can pass along the savings to consumers," said Steve Lindsey, vice president and general manager, Chattanooga Gas Company. "There are several factors responsible for the lower gas prices, which mean substantial savings for our customers."

Lindsey said that factors include a mild 2006 hurricane season so far and ample natural gas storage supplies.

Chattanooga Gas makes no profit on the natural gas it purchases on behalf of customers. It must purchase the natural gas at the current market price and pass the cost of the gas along to its customers without a profit.

The natural gas portion is about 75 percent of customers' bills. The remaining 25 percent of customers' bills consists of the distribution costs.

For optimum energy efficiency and cost savings this winter, Chattanooga Gas customers are encouraged to have their furnaces serviced and to take time to winterize their homes. A wealth of energy-saving tips and information can be found on the Chattanooga Gas Web site at www.chattanoogagas.com under customer care/energy conservation.

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. The Chattanooga Gas natural gas pipeline system delivers approximately 20 billion cubic feet of gas per year. For more information, please see www.chattanoogagas.com.

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 as well as No. 647 on the Fortune 1000 and No. 40 in the Fortune gas and electric utilities sector in 2006, 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.