AGL Resources Reports Retail Customer Churn, Results Lifted by Nicor Retail Contribution

AGL Resources' retail operations, consisting of SouthStar Energy Services and the Nicor retail businesses, contributed EBIT of $14 million for the second quarter of 2012, an increase of $13 million compared to EBIT of $1 million for the same period in 2011.

The increase was primarily the result of the addition of Nicor's retail businesses and increased margins resulting from reduced transportation and gas costs, partially offset by decreases at SouthStar due to warmer weather.

SouthStar Energy Services' average customer count in Georgia was 488,000 for the three months ended June 30, 2012, versus 494,000 for the three months ended March 31, 2012 and 492,000 a year ago.

SouthStar's market share in Georgia for the three months ended June 30, 2012 was 32%, even with the market share as of March 31, 2012 and June 30, 2011.

SouthStar's average customer count in Ohio & Florida for the three months ended June 30, 2012 was 73,000, versus 122,000 for the three months ended March 31, 2012 and 95,000 as of June 30, 2011. For the periods prior to April 1, 2012, the Ohio totals included 50,000 in customer equivalents acquired through the prior SSO auctions, with such contracts ending April 1, 2012.

AGL Resources' competitive retail business's average customer count in Illinois for the three months ended June 30, 2012 was 429,000, versus 445,000 for the three months ended March 31, 2012. A year-ago comparison for Illinois, as well as the additional states cited below, was not provided.

AGL Resources' competitive retail business's average customer count in Indiana for the three months ended June 30, 2012 was 40,000, versus 47,000 for the three months ended March 31, 2012.

AGL Resources' competitive retail business's average customer count for "other" markets was 3,000 for the three months ended June 30, 2012, versus 4,000 for the three months ended March 31, 2012.

Total average customer count for the competitive retail business, for the three months ending June 30, 2012, was 1.033 million, versus 1.112 million for the three months ending March 31, 2012, and 587,000 for the three months ending June 30, 2011 (the year-ago total does not include any Nicor retail customers).

SouthStar's Georgia firm volumes for the three months ended June 30, 2012 were 3 Bcf, versus 4 Bcf a year ago. Ohio & Florida firm volumes were flat at 1 Bcf for the quarter ended June 30, 2012.