Putting Out Money Where The Future Needs It

Pictured Above: Residential customer Mrs. Kathleen Holiman has been an Atlanta Gas Light customer for 55 years. But last year her furnace stopped working. On a fixed income, she began using a stove to heat her home in the dead of winter. Atlanta Gas Light stepped in to help Mrs. Holiman through its participation in the Home and Heartwarming Program in Georgia. Employees with the program repaired her furnace, added insulation, and installed new weather stripping at no charge. These measures helped make her home more energy efficient and lower her utility bills. An emotional Mrs. Holiman told a local TV news reporter, "I'm just overwhelmed. Somebody other than the Lord loves me."

We always have paid close attention to the health and strength of our distribution and storage systems' infrastructures. The capital investments we've made over the last few years, and plan to make in the years to come, are carefully analyzed for the impact they will have on our company's, our customers' and our communities' futures. We invest capital for the purpose of strengthening our foundation to ensure that we have many years ahead of us, and also to diminish the impact we have on our environment. In short, we spend money to stay strong to reduce our carbon footprint.

Our pipeline replacement programs in Georgia and New Jersey replace aging bare steel and cast-iron pipe with plastic and coated steel pipe – resulting in lower methane emissions, fewer leaks, and improved safety and reliability. We are building new pipelines such as the Magnolia Pipeline Project, a project that we, along with Southern Natural Gas, have undertaken to diversify our sources of natural gas. Additionally, the Hampton Roads Crossing pipeline will link two important service areas and minimize adverse impacts of upstream interruptions in natural gas supplies. Wherever we build, we strive to minimize our environmental impact by using environmentally friendly building methods, such as directional drilling, and using existing utility corridors to avoid disturbing shell fisheries, farmland, sensitive wetlands and residential areas.

Our capital investment in natural gas storage projects is driven by variables that include customer demand for energy, commodity market trends, geopolitical conditions and the weather, to name a few. Power generation drives demand for natural gas, and we believe that large volumes of natural gas will be offloaded on the Gulf Coast, either from LNG processing facilities or from unconventional reserves. These volumes will need to be stored and moved into the gas pipeline networks that supply the southeastern U.S. We're preparing for the future with the Golden Triangle Storage project. When completed in 2013, this facility will include two salt-dome caverns with a total storage capacity of 17 Bcf and six pipeline interconnects. We broke ground on the first cavern in mid-2008. The facility potentially can be expanded to a total of five caverns with 38 Bcf of working natural gas in the future based on customer interest.