AGL Resources Inc. subsidiary Virginia Natural Gas (VNG) announced Thursday that its asset management plan, managed by another AGL Resources subsidiary, Sequent Energy Management, saved the utility's customers $1.89 million in 2006. Over the past six years, VNG said the Sequent asset management plan has generated approximately $19 million in savings through reduced gas costs for its customers.
"As Virginians experience seasonably low temperatures, natural gas remains an excellent residential and commercial heating source because of energy efficiency, comfort and reliability," said Hank Linginfelter, president of VNG. "As our customers adjust their thermostat to heat their homes and businesses, Virginia Natural Gas continues to work with Sequent to hold down gas costs."
VNG said customers will see the $1.89 million savings from April 2007 through March 2008 in the form of reduced gas costs. However, the gas cost reduction will not appear as a line item on the gas bill but will be reflected in the gas cost calculation applied to the customer's bill. Because of the asset management services Sequent provides for Virginia Natural Gas, the gas cost customers see on their bill will be less than the overall price the company paid for the gas, the utility said, noting that it has not increased its rates for costs associated with gas delivery charges since 1996 and recently agreed to freeze these non-gas rates for an additional five years.
Houston-based Sequent focuses on asset management and optimization, producer services, wholesale marketing and risk management.
"Customers pay only what Virginia Natural Gas paid for the natural gas -- and not a penny more," Linginfelter said. "Virginia Natural Gas is doing everything possible to cushion the impact on customers by managing costs, offering rebates, encouraging energy conservation and supporting energy assistance."
VNG provides retail natural gas sales and distribution services to 265,000 customers in southeast Virginia. For more information on the utility's conservation advice and energy assistance measures, visit www.virginianaturalgas.com.
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