Elizabethtown Gas, a subsidiary of energy services holding
AGL Resources Inc.
), has got an approval from New Jersey Board of Public Utilities
(BPU) to spend up to $115.0 million for accelerated
infrastructure replacement (AIR) program.
Elizabethtown Gas will invest the amount over a period of four
years, for improving the safety, integrity and reliability of its
distribution business. Moreover, this program will support New
Jersey State's plan to tighten energy security and lower energy
expenses by investing in natural gas infrastructure.
Elizabethtown Gas will bear the cost initially and will file a
rate case to cover up its construction expenses before Sep 1,
The BPU sanction follows a similar infrastructure enhancement
program achieved by Georgia-based Atlanta Gas Light Company -
another affiliate of AGL Resources - two weeks back. As per that
program, Georgia Public Service Commission (PSC) gave Atlanta Gas
Light Company approval to invest roughly $275.0 million over a
time span of four years for the replacement of vintage plastic
pipes that spread over more than 750 miles.
The construction cost is expected to be initially financed by
charging an extra 48 cents from customers up to Dec 2014. In Jan
2015 and Jan 2016 additional 48 cents and 49 cents will be
charged, which is believed to continue till 2025.
ATMOS ENERGY CP (ATO): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis
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PIEDMONT NAT GA (PNY): Free Stock Analysis
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Founded in 1856, Atlanta-based AGL Resources is an energy
services holding company whose is principally involved in gas
distribution. Through its seven utilities (Atlanta Gas Light,
Chattanooga Gas, Elizabethtown Gas, Elkton Gas, Florida City Gas,
Nicor Gas and Virginia Natural Gas) the company builds, manages
and maintains intrastate natural gas pipelines, distribution
facilities and peaking and storage facilities.
Primarily a gas distributor, AGL Resources' earnings largely
depend on weather patterns. Colder-than-normal temperatures could
result in higher usage that may positively affect the company's
AGL Resources currently carries a Zacks Rank #2 (Buy), implying
that it is expected to outperform the broader U.S. equity market
over the next one to three months.
Apart from AGL Resources, one can consider other utility gas
Atmos Energy Corp.
New Jersey Resources Corp.
Piedmont Natural Gas Co. Inc.
) as attractive investments. All the stocks sport a Zacks Rank #2