AGL Resources Reports Number of Competitive Retail Customers in Each Market

As part of reporting earnings earlier in May, AGL Resources reported average customer counts for its retail gas marketing businesses for the three months ended March 31, 2012, including new states now served through the Nicor retail businesses, representing the first public disclosure of such Nicor retail customer numbers in such manner.

SouthStar Energy Services' average customer count in Georgia was 494,000 for the three months ended March 31, 2012.

A direct comparison to the most recent three months (e.g. quarter ending December 31, 2011) is not available, because at year-end AGL Resources reports SouthStar's average customer count for the 12 months ending December 31, rather than the three months ending December 31.

For reference, SouthStar's average customer count for the 12 months ended December 31, 2011 was 485,000, and its average customer count for the three months ended September 30, 2011 was 482,000.

SouthStar's average customer count in the year-ago period (three months ended March 31, 2011) had been 498,000.

SouthStar's market share in Georgia for the three months ended March 31, 2012 was 32%, versus 33% at the end of 2011 but flat versus March 31, 2011.

SouthStar's average customer count in Ohio & Florida for the three months ended March 31, 2012 was 122,000. This compares to an average Ohio & Florida customer count of 96,000 for the year 2011.

The Ohio & Florida customer data includes customer equivalents in Ohio. On April 1, 2012, SouthStar's contract to serve approximately 50,000 Ohio customer equivalents ended.

AGL Resources also reported customer counts for additional states that AGL Resources' competitive retail business now serves through the Nicor retail businesses.

Specifically, AGL Resources' competitive retail business's average customer count in Illinois for the three months ended March 31, 2012 was 445,000.

AGL Resources' competitive retail business's average customer count in Indiana for the three months ended March 31, 2012 was 47,000.

AGL Resources' competitive retail business's average customer count for "other" markets was 4,000 for the three months ended March 31, 2012.

Total average customer count for the competitive retail business, for the three months ending March 31, 2012, was 1.112 million, versus 569,000 for the three months ending March 31, 2011 (the year-ago total does not include any Nicor retail customers).

SouthStar's Georgia firm volumes for the three months ended March 31, 2012 were 14 Bcf, versus 18 Bcf a year ago.

Ohio & Florida firm volumes were flat at 4 Bcf for the quarter ended March 31, 2012.

AGL Resources' retail operations segment, which consists of SouthStar Energy Services, Nicor Services, Nicor Solutions and Nicor Advanced Energy, contributed EBIT of $60 million for the quarter ended March 31, 2012, a decrease of 12% compared to $68 million for the same period in 2011.

EBIT declined primarily as a result of warmer than normal weather, particularly in Georgia, which negatively impacted year-over-year EBIT by $8 million. In addition, the retail operations segment recorded a $3 million natural gas inventory valuation lower-of-cost-or-market (LOCOM) adjustment. The retail segment did not record a similar inventory adjustment in the first quarter of 2011. These decreases were partially offset by a reduction of transportation and gas costs and higher retail price spreads.