Jefferson Island Storage & Hub Solicits Bids for Storage Capacity Available Beginning Next Year

JISH will have 1.1 million dekatherms (MMDth) of storage capacityavailable beginning April 1, 2007.

In addition, JISH is soliciting interest in capacity for itsfourth cavern scheduled to be in service in 2011.

Located near the Henry Hub at Erath, La. in Vermillion and IberiaParishes, JISH is a high-deliverability storage facility capable ofmultiple inventory cycles every year. The facility currently consistsof two salt dome gas storage caverns with 10 MMDth of total capacity,and 7.2 MMDth of working gas capacity. Currently, JISH has 720,000dekatherms per day (Dth/d) withdrawal capacity and 360,000 Dth/dinjection capacity.

The JISH header system currently has interconnections with eightpipelines including direct access to the Henry Hub via SabinePipeline. JISH connects with Crosstex (Louisiana Intrastate Gas),Texas Gas Transmission, Columbia Gulf Transmission, Sea RobinPipeline, Tennessee Gas Pipeline, Gulf South Pipeline and NGPL. JISHanticipates having new interconnects with Trunkline and SONAT inconnection with the expansion of its third cavern. In addition, JISHhas the potential to interconnect with Bridgeline, Acadian and Dow ifcustomers are interested.

JISH has begun its expansion plans for its third cavern, which isexpected to be completed by 2009. This expansion is expected toincrease the total capacity at JISH to 13.6 MMDth.

JISH previously solicited interest in the third cavern and basedon customer interest from that solicitation is now also solicitinginterest in its fourth cavern, which is scheduled to come online by2011. This expansion is expected to increase the total capacity atJISH to as much as 19.8 MMDth with 1.5 MMDth per day withdrawalcapacity and 750,000 Dth/d injection capacity.

Parties interested in JISH's capacity bidding process shouldcontact Rob deCardenas at (832) 397-3881 (rdecarde@aglresources.com),Elsa Villarreal at (832) 397-3895 (evillarr@aglresources.com) or MaryLou Dale at (832) 397-3727 (mdale@aglresources.com). Information alsois available on the JISH bulletin board located athttp://www.gasnom.com/ip/jeffersonisland/

About AGL Resources

AGL Resources (NYSE: ATG), an Atlanta-based energy servicesholding company, serves 2.2 million customers in six states throughits utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in NewJersey, Virginia Natural Gas, Florida City Gas, Chattanooga Gas, andElkton Gas in Maryland. AGL Resources reported revenue of $2.7 billionand net income of $193 million in 2005. The company also ownsHouston-based Sequent Energy Management, an asset manager servingnatural gas wholesale customers throughout the East and Midwest. As a70 percent owner in the SouthStar partnership, AGL Resources marketsnatural gas to consumers in Georgia under the Georgia Natural Gasbrand. AGL Networks, the company's telecommunications subsidiary, ownsand operates fiber optic networks in Atlanta and Phoenix. The companyalso owns and operates Pivotal Jefferson Island Storage & Hub, ahigh-deliverability natural gas storage facility near the Henry Hub inLouisiana. For more information, visit www.aglresources.com.

Forward-Looking Statements

Certain expectations and projections regarding our futureperformance referenced in this press release, such as the expected newpipeline interconnections and completion of expanded caverns, areforward-looking statements. Forward-looking statements involve mattersthat are not historical facts, and because these statements involveanticipated events or conditions, forward-looking statements ofteninclude words such as "anticipate," "assume," "can," "could,""estimate," "expect," "forecast," "future," "indicate," "intend,""may," "outlook," "plan," "predict," "project," "seek," "should,""target," "will," "would," or similar expressions. Our expectationsare not guarantees and are based on currently available competitive,financial and economic data along with our operating plans. While webelieve our expectations are reasonable in view of the currentlyavailable information, our expectations are subject to future events,risks and uncertainties, and there are several factors - many beyondour control - that could cause results to differ significantly fromour expectations.

Such events, risks and uncertainties include, but are not limitedto, changes in price, supply and demand for natural gas and relatedproducts; the impact of changes in state and federal legislation andregulation; actions taken by government agencies on rates and othermatters; direct or indirect effects on AGL Resources' business,financial condition or liquidity resulting from a change in our creditratings or the credit ratings of our counterparties or competitors;interest rate fluctuations; financial market conditions and generaleconomic conditions; and other factors which are described in detailin our filings with the Securities and Exchange Commission, which weincorporate by reference in this press release. Forward-lookingstatements are only as of the date they are made, and we do notundertake any obligation to update these statements to reflectsubsequent changes.