AGL Resources Inc., parent of Atlanta Gas Light (AGL) posted anet loss of $1.2 million for the third quarter ended June 30,compared with a gain of $1.4 million for the year-earlier quarter.

The income loss was anticipated since the AGL transportationrate in effect then was tied to the level of gas consumption duringthe April-to-June period, which is typically down, noted a companyspokeswoman. But this will be “the last quarter we’ll reportresults with those particular rates, since the Natural GasCompetition and Deregulation Act [in Georgia] mandated a new ratedesign that began July 1.”

“The new rates for utility delivery service, which are no longerdependent on the amount of gas used by our customers, will levelout the utility’s revenues during the year, and the company’searnings will be more evenly distributed all through the year thanin the past,” said J. Michael Riley, senior vice president and CFOof AGL Resources. “The new rate design matches revenues fromcustomers much more closely to the cost incurred by the utility.”

He anticipates the company will see higher revenues during itsupcoming fourth quarter compared to the same period a year ago. Butrevenues during the winter months – the second quarter of fiscal1999 – are expected to be lower than the second quarter in 1998,Riley noted.

AGL Resources also noted the third-quarter earnings were lowerdue to the start-up expenses for the company’s new retail energymarketing arm, Atlanta Gas Light Services, and to the costs relatedto the company’s restructuring in the past few months.

For the nine-month period, AGL Resources reported that netincome was $69.6 million, or $1.22 per share, compared to $80million, or $1.43 per share, in the same period in 1997. Theprimary reason for the lower year-to-date earnings was a decline inoperating margin from the company’s natural gas utility tied tolower gas consumption as a result of more energy-efficientappliances and homes.

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