Atlanta Gas Light Company - an affiliate of
) - entered into a service contract with the City of Atlanta and
three other commercial operators.
Per the agreement, Atlanta Gas will set up five new compressed
natural gas (CNG) fueling stations throughout Georgia. The company
will incur an investment of about $6.5 million for the installation
of compression and storage equipment at the stations.
In the coming years, Atlanta Gas has the option to strike service
deals with other station owners for the investment of an additional
$5 million fund that was authorized by the Public Service
In November, last year, the Public Service Commission gave a nod to
Atlanta Gas' proposal for an investment of $11.57 million to bring
in equipments at the CNG fueling stations. The Commission has also
approved a new rate for the services provided by Atlanta Gas.
This happens to be the first state-sponsored investment program in
the Southeast, where a company is able to upgrade infrastructural
facilities in the market without burdening customers.
The five to-be opened fueling units will span across Downtown
Atlanta, Forest Park, Savannah and Valdosta. Of these, three
stations will render public access.
Atlanta, Georgia-based AGL Resources is an energy services holding
company, whose principal business is 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 along with peaking and
AGL Resources - one of the major distributors of natural gas in the
nation along with the likes of
Atmos Energy Corp.
) - currently retains a Zacks #3 Rank (short-term Hold rating). We
are also maintaining our long-term Neutral recommendation on the
ATMOS ENERGY CP (ATO): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis Report
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