2003 Analyst/Investor Conference
1
Forward-Looking Statements
These presentations contain forward-looking statements. Company management cautions readers
that the assumptions, which form the basis for the forward-looking statements, include many
factors that are beyond company management's ability to control or estimate precisely. Those
factors include, but are not limited to, the following: changes in industrial, commercial, and
residential growth in the company's service territories and those of the company's subsidiaries;
changes in price and demand for natural gas and related products; impact of changes in state and
federal legislation and regulation, including various orders of the state public service
commissions and the Federal Energy Regulatory Commission, on the gas and electric industries
and on the company, including the impact of Atlanta Gas Light Company's performance based
rate plan; effects and uncertainties of deregulation and competition, particularly in markets
where prices and providers historically have been regulated, unknown risks related to
nonregulated businesses, and unknown issues such as the stability of certificated marketers;
impact of Georgia's Natural Gas Consumers' Relief Act of 2002; concentration of credit risk in
certificated marketers and the company's wholesale services segment's counterparties; excess
network capacity and demand/growth for dark fiber in metro network areas of AGL Networks'
customers; AGL Networks' introduction and market acceptance of new technologies and
products, as well as the adoption of new networking standards; ability of AGL Networks to
produce sufficient capital to fund its business; ability to negotiate new contracts with
telecommunications providers for the provision of AGL Networks' dark-fiber services; industry
consolidation; performance of equity and bond markets and the impact on pension fund costs;
impact of acquisitions and divestitures; changes in accounting policies and practices issued
periodically by accounting standard-setting bodies; direct or indirect effects on the company's
business, financial condition or liquidity resulting from a change in the company's credit ratings
or the credit ratings of the company's competitors or counterparties; interest rate fluctuations,
financial market conditions, and general economic conditions; uncertainties about environmental
issues and the related impact of such issues; impact of changes in weather upon the temperature-
sensitive portions of the company's business; and other risks described in the company's
documents on file with the Securities and Exchange Commission.
Pivotal Development:
Regions of Possibilities
Dana Grams
Senior Vice President, Pivotal Development
Pivotal Energy
Pivotal Energy Development formed within AGL Services
Company in August 2003
Pivotal coordinates development, construction and/or
acquisitions that complement current assets
Focused primarily in Southeast and mid-Atlantic regions
(that’s our “sphere of influence”)
Improve service to our customers through:
Increasing reliability of service
Reducing cost of service
Opportunities for Pivotal
Now:
Capacity requirements for our distribution
companies are changing
Now:
Our distribution companies’ contracts for firm
transportation services are expiring
Soon:
Potential shifts in supply sources for natural gas
Sample Load Duration Curve and Supply
Stack of “Assets” to meet it
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000
150,000
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
Remaining Winter Days
Pipe 1 FT
Pipe 2 FT
LNG
60 day storage
Pipe 1
120 day
Pipe 3
Pipe 2
Contracts Totaling 50% of the MDQ and 63% of
Reservation Charges Expire in the Next Two Years
Virginia Natural Gas Service Territory
Pivotal Propane Peak Shaving Facility
Scope and Project Objectives
Scope:
Adds 28,800 Dthd
Expandable to 66,000 Dthd
3 million gallon Cold Storage tank
Project Objectives:
Meets 3-year peaking forecast
Expandable for 10-year demand
10 days of peaking
South to North flexibility
Pivotal Propane Peak Shaving
Facility Timeline
May-Sep ’03
Oct ‘03
Nov ‘03
Q104
Q204
Q304
Q404
Construction
Preliminary Engineering
Propane Plant
Start-up 12/04
Permitting
Permitting
Complete 2/26
Regulatory
Approval
Complete 1/23
VEPD
Local
County
Air
Soil
Site Work
Tank Construction
Process Construction
Pipeline
Board
Approval
Present State of
Georgia Pipelines
LNG Plant or Terminal
Southern Natural Gas
Transcontinental Natural Gas
East Tennessee Natural Gas
South Georgia Natural Gas
Elba Island LNG Terminal
Compressor Station
Macon Peaking Pipeline/
Bare Steel Replacement
Repatriates 70 MDth/d stranded
capacity from the Macon LNG
facility to metro Atlanta
Provides additional peaking to
marketplace
Delivers Elba or GOM gas to
Atlanta
178
178
@ 1200 PSIG
76
76
@ 600 PSIG
Capacity - MDthd
$60
$19
Length - Miles
$48
$14
Est. Cost (millions)
Replm't
Peaking
Bare Steel
Macon
In the future, supply basin flows to our
region will change
Existing and Proposed LNG
Import Facilities
Southern Natural Gas
Pipeline Connections
12 metres
Draft
1
Tanker Berths
3
Number of Tanks
4 Bcf
Storage Capacity
MMcf per day
(maximum sendout is 675
440 MMcf per day
Vaporization Capacity
El Paso
Operator:
(Operating)
Elba Island, GA
Trunkline, Gulf Coast Pipes
Pipeline Connections
12 metres
Draft
1
Tanker Berths
3
Number of Tanks
6.3 Bcf
Storage Capacity
630 MMcf per day
day. Sustained capability
Peak capability 1.0 Bcf per
Vaporization Capacity
(CMS)
Trunkline LNG
Operator:
(Operating)
Lake Charles, LA
Columbia Gas, Transcontinental
Pipeline Connections
11 metres
Draft
2
Tanker Berths
(expanding to 5)
4
Number of Tanks
(expanding to 7.5 Bcf)
5.0 Bcf
Storage Capacity
(750 allocated for imports)
1 Bcf per day
Vaporization Capacity
(Dominion)
Cove Point LNG
Operator:
(Operating)
Cove Point, MD
Algonquin, Tennessee
Pipeline Connections
11 metres
Draft
1
Tanker Berths
2
Number of Tanks
3.6 Bcf
Storage Capacity
100 MMcf per day
Trucking Capacity
day in mid-2001
(expanding to 600 MMcf per
435 MMcf per day
Vaporization Capacity
(Tractebel)
Distrigas LNG
Operator:
(Operating)
Everett, MA
Existing Terminals
Proposed Terminals
Canaport
(Irving)
Fairwinds
(TCPL, ConocoPhillips)
Bear Head
(ANE)
Freeport
(Cheniere)
West Coast
(Calpine)
West Coast
(Mitsubishi, Crystal,
BHP Billiton)
Cameron
(Sempra)
Offshore GOM
(Shell, El Paso, ChevronTexaco)
East Coast
(Golar, Somerset,
Weaver’s Cove)
Bahamas
(El Paso, AES, Tractebel)
Baja, Mexico
(ConocoPhillips, Sempra,
ChevronTexaco, Shell,
BP, Marathon)
Global LNG
Trade Routes
LNG is Destined for Eastern Seaboard
Trinidad LNG is bound for US, both eastern seaboard
and Gulf Coast
Qatar and Nigerian LNG may seek US markets as well
Elba Island Terminal
Current capacity 440 MDthd
Shell expansion 360 MDthd
800 MDthd available daily
Total takeaway of 520 MDthd is mis-matched; AGL can be
part of solution
AGL is poised for East Coast market opportunities
Georgia
Marketplace
Elba Island LNG
Import Terminal
Cove Point LNG
Georgia Market Place
Macon LNG
Appalachian Production
a
SONAT Pipeline
Transco Pipeline
Jacksonville
Elba Island LNG
Virginia Market Place
OPPORTUNITY
Joint Use Pipeline
East Tennessee Pipeline
VNG Propane Peaking
AGL Marketplace: A Region of
Opportunities
Potential Opportunities For Investment
*Required under pipeline replacement program.
Propane Air Plant
Macon Peaking Pipeline
Pipeline Replacement
Project
*
Pipeline Project
LNG Opportunity
2004
2005
2006
2007
2008
2009