Energen Resources, the production unit of Energen Corp., detailed its extensive supply arrangements with Williams and Dynegy in response to downgrades by credit rating agencies of the two energy marketers last week. Energen said both companies are current in their monthly payments for a total of about 1.6 Bcf per month on gas and gas liquids production. Williams affiliates are under contract to purchase 0.8 Bcf per month of Energen Resources’ net natural gas production through October 2002 and an estimated 0.4 Bcfe of Energen’s gas liquids production through May 2004. Dynegy affiliates are under contract to purchase 0.4 Bcf per month of Energen’s gas production through March 2003. Outstanding invoices for June production, which are due and payable later this month, total $4 million for Williams and $1.5 million for Dynegy. Energen said it has had a long-standing relationship with Williams in the San Juan Basin and with Dynegy in the Black Warrior Basin and is currently delivering to both parties under existing sales contracts. Birmingham, AL-based Energen Corp. is a diversified energy holding company with natural gas distribution in central and north Alabama and oil and gas production onshore in North America.

Centrica subsidiary Energy America said it is offering Georgia retail gas customers a new two-year fixed rate and $50 for switching. The deal is designed to boost Centrica’s presence in the Georgia market, where it currently has only 60,000 customers out of 1.4 million. “With a two-year fixed rate, consumers no longer have to worry about the fluctuations of natural gas prices,” said Don Whaley, senior vice president of Energy America’s southern region. “The $50 reimbursement covers the cancellation fee the consumer’s current gas marketer might charge them for switching marketers.” Although other marketers are offering fixed-rate deals, Energy America said its the only one offering two-year protection for new customers. The fixed-rate plan includes an initial fixed commodity price of 67.9 cents per therm, with a low customer charge of $5 that is pro-rated each month, and local distribution company pass-through charges and taxes. Energy America’s commodity charge is about a penny less per therm than the average fixed rate price offered during the month of July. Its $5 customer service charge is 28 cents less than the average charge offered in July. “By offering high-quality customer service, guaranteed rates and no-cost switching, we hope to grow our customer base here and establish long-lasting relationships in this state,” said Whaley. “With this campaign, we hope to show consumers that we are in Georgia for the long haul and that we’re a reliable, strong company that offers guaranteed rates, peace of mind and top-notch customer service.” Energy America has become one of the largest multi-state retailers of deregulated retail energy services in North America, with more than 450,000 U.S. customers principally located in Georgia, Michigan and Texas.

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