November 2003 Investor Meetings New York, NY

November 2003Investor Meetings

New York, NY

November 2003Investor Meetings

New York, NY

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Investors ConferenceInvestors ConferenceNovember 2003 Investor MeetingsNovember 2003 Investor Meetings

Cautionary Statement Regarding Forward-Looking Statements

This presentation contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources’ 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 service territories of AGL Resources Inc. and its subsidiaries; changes in price and demand for natural gas and related products; impact of changes in state and federal legislation and regulation, including various state public service commissions and the Federal Energy Regulatory Commission orders, on the gas and electric industries and on AGL Resources, 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 wholesale services’ 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 AGL Resources’ business, financial condition or liquidity resulting from a change in the company’s credit ratings or the credit ratings of its 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 business; and other risks described in our documents on file with the Securities and Exchange Commission.

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The ATG Value Proposition

Annual Total Return

8-10+%

Annual Total Return

8-10+%

Organic Development/Acquisition 2-3%

Organic Development/Acquisition 2-3%Base Business Growth

2-3%

Dividend Yield4-5%

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2003 Goals

Strengthen the company financially

Grow around existing assets

Execute flawlessly in every business segment

Demonstrate a compelling proposition for all our stakeholders

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2003 ScorecardFinancial Strength$137 million equity offering

$225 million debt offering

Improved cash generation

Increased dividend 4%

Interest rate swaps

Ratings affirmed and one upgrade

Asset DevelopmentDisplacing pipelines as an

opportunity

Formalized project development efforts (Pivotal)

Macon peaking pipeline

VNG propane pipeline and expansion

Flawless ExecutionAchieved strong YTD earnings

results

Received favorable regulatory decisions related to asset management

Increased ownership of SouthStar

Refocused dark-fiber business

Compelling PropositionZenith of regulatory and

governmental relations

Community giving

Increased institutional owner base

Record share price

Employee satisfaction

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High-Quality, Predictable Utility Operations With Regulatory Stability

Service Areas

ChattanoogaChattanooga

AtlantaAtlanta

NorfolkNorfolk

• Performance-based ratemaking (PBR)• Maintains straight-fixed variable rates (SFV)• Regulatory certainty through 2005• Authorized return levels very favorable

• Weather normalization (2-year program)• Price stability for customers• Favorable regulatory climate

Georgia – 1.6 million customers

Virginia – 250,000 customers

Tennessee – 60,000 customers

• WNA adjustment offsets weather impact • Level revenue stream throughout year

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Per

cen

t o

f R

etu

rn

16%

14%

12%

10%

8%

6%

4%AGLC CGC VNG

Authorized (1) Actual Authorized Actual Authorized Actual (2)

(1) The authorized ROE is 11.00%. The top of the earnings band is 12.00%. The company also can include 1/2 of VNG synergies in calculating the return prior to sharing – bringing authorized ROE to approximately 12.6%..

(2) Based on actual weather.

AGL Resources Utility OperationsReturn on Equity 12 Months Ended June 30, 2003

12.00

11.00 11.0610.90

10.96

9.51 10.75

Regulatory Compact Provides Proper Incentives

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Unique Features to Note

ATLANTA GAS LIGHT COMPANYEnvironmental Recovery Cost Rider

$37

$16

$4$2

$0 $0 $1

$22

$38$40

$23$23

$22 $22$22$24$23

$17

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2002 2003 2004 2005 2006 2007 2008 2009 2010

in M

illio

ns

Net Expenditures Revenues and Third Party Recoveries

• Environmental recovery rider turns cash-flow positive in 2005Environmental recovery rider turns cash-flow positive in 2005

• Pipeline replacement program provides return on, and of, capitalPipeline replacement program provides return on, and of, capital

• Environmental recovery rider turns cash-flow positive in 2005Environmental recovery rider turns cash-flow positive in 2005

• Pipeline replacement program provides return on, and of, capitalPipeline replacement program provides return on, and of, capital

ATLANTA GAS LIGHT COMPANY

$43

$49 $50$48 $50

$94$91

$95$92 $92

$2 $4

$13

$21

$28

$39

$51

$62

$73

$20

$6

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

in M

illi

ons

Total Capital Cash RecoveryNotes: Data based on collection year.

*Investment of $480 million to be recovered through base rates at end of program

Pipeline Replacement Program Rider

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Henry Hub

TX

GA

IL

LA

MD

TN

VA

HoustonHouston

Company Owned

LNG Plants

Propane Storage

Other

LNG Terminals

Accessible Storage

AtlantaAtlanta

Three business lines: producer services; transportation asset management; storage arbitrage

Asset management sharing arrangements approved in all states

Emerging commerce in peaking services and other origination business

ChattanoogaChattanooga

NorfolkNorfolk

Elba Island

Cove Point

HenryHenryHubHub

Sequent Provides Incremental ValueFrom Existing Asset Base

Lake Charles

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GNG 38.1%

Mktr C14.9%

Others 8.5%

Mktr A 24.0%

Mktr B 14.5%

SouthStar’s Net Income

CY 2002 $41 millionCY 2001 $17 million

SouthStar’s Net Income

CY 2002 $41 millionCY 2001 $17 million

SouthStar Is Now A Stable, Annuity-Quality Business

ATG owns 70% but earnings distributed disproportionately

38% market share Stable, maturing business 60% of earnings from fixed

charges Focus on maintaining market

share; improving customer service; and continuing to implement rigorous controls around credit quality

Project DevelopmentActivities

Project DevelopmentActivities

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Pivotal Energy Development

Support goal to grow around existing assets

Develop or acquire projects that supplement current assets to:

– Reduce the cost of service to ratepayers

– Create multi-level return opportunities

Value through synergies between existing assets and new projects

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Declining Regional Load Factor

Southeast Pipeline Capacity Utilization

-

5,000

10,000

15,000

20,000

25,000

1990 2000

Capacity (MMcfd)

Average Throughput(MMcfd)

74% Load Factor

65% Load Factor

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Declining Load Factor in Georgia

AGLC Load Factor

16.6%

16.3%

15.9%

15.6%

15.3%

14.6%

14.8%

15.0%

15.2%

15.4%

15.6%

15.8%

16.0%

16.2%

16.4%

16.6%

16.8%

2000 2001 2002 2003 2004

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MACONLNG

ATLANTA HUBATLANTA HUBELBA ISLAND

LNG IMPORT TERMINAL

VNG PROPANE PEAKING

SALT DOMESTORAGE

EAST TENNESSEEINTERCONNECT

JOINT USE

PIPELINE

APPALACHIANPRODUCTION

OPPORTUNITY VIRGINIA HUBVIRGINIA HUB

Regional Opportunities

DIRECT TO ATLANTA PIPELINEDIRECT TO ATLANTA PIPELINE

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Near-Term Development Plans

Macon Peaking Pipeline

– Peaking needs continue to grow in Atlanta despite declining load factor

– Currently LNG facility is limited to 50% capability by constrained take-away capacity

VNG Propane-Air Facility Expansion

– Additional peaking capacity needed at VNG

– Modest propane injection has been used to manage peak needs

– Improves duration and reliability of propane injection peaking

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Lake CharlesLake Charles

Elba IslandElba Island

Cove PointCove Point

EverettEverett

Storage with liquefaction (57)

Storage without liquefaction (39)

Source: EIA, Office of Oil and Gas, September 2002

U.S. Liquefied Natural Gas Facilities

AGL Resources LNG Facilities Capacity

Location Storage

(bcf) Liquefaction

(Mcfd) Vaporization

(Mcfd) 1 Riverdale 2.5 10,000 400,000 2 Cherokee 2.0 10,000 400,000 3 Macon* 1.5 10,000 150,000 4 Chattanooga 1.2 8,000 90,000 Propane Air-VNG (North) 0.2 14,400 Propane Air – VNG (South) 0.2 28,800 Propane Air – Valdosta 0.07 3,600 *Pipeline system currently can only accommodate a delivery of 70,000 Mcf/day.

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3

2

1

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What Makes ATG Different?

Location … Location … Location

Management is all over the details

Always searching for opportunities to create value

No surprises

Only promise what we know we can deliver

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We Keep Our Promises

$1.33$1.36

$1.51 $1.54

$1.75

$1.84$1.94

$1.91-$1.96

$1.20

$1.40

$1.60

$1.80

$2.00

2000 2001 2002 2003E

CY EPS

Consensus Estimate Actual

2000 – 2002 CAGR = 16%

Revised guidance upward following 3Q earnings

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Upcoming Events

ATG Analyst/Investor Conference – November 17-19 in Savannah, Georgia

4th Quarter/Year-End 2003 Earnings Released – January 29, 2004

Contact:

Steve CaveDirector, Investor Relations(404) 584-3801E-mail: [email protected]

Documents

November 2003 Investor Meetings New York, NY