2. Real Results Real 2003 AGL Resources Shareholder Meeting Presented By Paula G. Rosput Chairman, President and Chief Executive Officer 2003 AGL Resources Shareholder Meeting Presented By Paula G. Rosput Chairman, President and Chief Executive Officer

3. Welcome To Ten Peachtree Place 2003 AGL Resources Shareholder Meeting AGLR Board of Directors Officers and Management Guests Ten Peachtree Place 2003 AGL Resources Shareholder Meeting AGLR Board of Directors Officers and Management Guests

4. Then and Now

5. Setting Records value highest earnings per share peak-day send outs highest stock price customers

6. value

7. Today’s Objectives Review of 2002 Goals and Results Goals for 2003 Challenges & Opportunities AGL Resources Corporate Values Review of 2002 Goals and Results Goals for 2003 Challenges & Opportunities AGL Resources Corporate Values

8. value improve earnings improve earnings

9. ATG Earnings Per Share (By Calendar Quarter) 2002- $1.84 per share 19% increase over 2001 2002- $1.84 per share 19% increase over 2001 Cents 1.00,90.80.70.60.50.40.30.20.10 0 Cents 1.00,90.80.70.60.50.40.30.20.10 0 1Q2Q3Q4Q 2002 2001

10. Strategy or Tactics?  No “new and improved” strategy necessary  Stay the course  Execute with precision  Stick with the fundamentals

11. ATG Stock Price 2002 Dec 16: Hits $25.00 High Dec 16: Hits $25.00 High

12. ATG versus S&P and Peer Group 10.7% 2.0% -22.1% ATG LDC S&P 500 2002

13. CORE EARNINGS Dollars in millions CORE EARNINGS PER SHARE Dollar

14. ATG 3-Year Stock & Return Index LDCs ATG S&P 500 4/00 4/01 4/02 4/03 LDCs ATG S&P 500 STOCK PRICE RETURN ON INVESTMENT

15. ATG Outperforming Blue-chip Stocks ATG is trading at 94% of its 52-week high, outpacing nearly every company in the Dow Jones Industrial Average index *As of April 2, 2003

16. ATG Outperforming Its Peers, Too Trading at 94% of its 52-week high, ATG is outperforming its energy sector peer group, which is trading at an average of 80% of the 52-week high. *As of April 2, 2003

17. value regulatory paradigm regulatory paradigm change the change the

18. Regulatory Highlights

19. Georgia Settlement reached Performance- based plan Settlement reached Performance- based plan

20. Virginia Weather normalization adjustment

21. Stability In Rates & Relations Sequent

22. value accelerate telecom accelerate telecom

23. Our Current Networks Atlanta Metro Phoenix Metro

25. value our accomplishments our accomplishments

26. $25 6% $1.84 CORE EARNINGS PER SHARE Dollar SHARE PRICE Dollar TOTAL RETURN TO SHAREHOLDERS Percent 11% value Expanded AGL Networks Rate and regulatory stability

27. SouthStar 70% 30% Georgia Natural Gas Improve customer base Improve service Enhance quality of earnings Improve customer base Improve service Enhance quality of earnings

28. value realities realities

29. If You Don’t Drill… Source: EIA …and you consume more –

30. Storage Will Fall & Prices Rise Source: EIA Mar 01 Mar 02March 03 $ 10 9 8 7 6 5 4 3 $ 10 9 8 7 6 5 4 3 Historical range of storage volumes 1998-2002 Weekly storage volumes Natural gas spot prices Historical range of storage volumes 1998-2002 Weekly storage volumes Natural gas spot prices

31. NYMEX Forward Curve & Volatility Close of Business April 10, 2003

32. Volatility and Pricing Use Sequent’s expertise to benefit our customers Diversify pipelines and storage Increased LNG use Use Sequent’s expertise to benefit our customers Diversify pipelines and storage Increased LNG use

33. value goals for 2003 goals for 2003

34. value ourselves ourselves financially financially strengthen strengthen

35. Equity Offering Completed a $137 million equity offering in February 6.4 million shares Reduced our debt-to- capitalization ratio from 67 to 57 percent Solidified our credit ratings Received upgrade to A- by Fitch Completed a $137 million equity offering in February 6.4 million shares Reduced our debt-to- capitalization ratio from 67 to 57 percent Solidified our credit ratings Received upgrade to A- by Fitch

36. Post-Offering Consensus:$1.85-1.90 Includes dilution of $0.10 per share from equity offering Price has recovered nicely Trading in mid-to-high $23 range with healthy volumes Continued after-market institutional support Consensus:$1.85-1.90 Includes dilution of $0.10 per share from equity offering Price has recovered nicely Trading in mid-to-high $23 range with healthy volumes Continued after-market institutional support

37. value around our around our existing assets existing assets grow grow

38. Meeting Expectations Wall Street: 5-7% growth Operate well run utilities Limited growth Regulatory restrictions Slowing regional economies Keep costs low – raise revenue Wall Street: 5-7% growth Operate well run utilities Limited growth Regulatory restrictions Slowing regional economies Keep costs low – raise revenue

39. Opportunity

40. value flawlessly flawlessly in every business segment in every business segment execute execute

41. Not a Luxury – A Necessity Safety a must Required commodity Avoid costly mistakes Use proven technology Enhance Sequent’s capabilities using strict risk management framework Extend system disciplines to SouthStar Reduce Networks’ sales cycle time Safety a must Required commodity Avoid costly mistakes Use proven technology Enhance Sequent’s capabilities using strict risk management framework Extend system disciplines to SouthStar Reduce Networks’ sales cycle time

42. value a compelling a compelling proposition to our stakeholders proposition to our stakeholders demonstrate demonstrate

43. Committing To Our Stakeholders value customers communities regulators shareholders

44. value governance governance

45. Compensation Corporate Responsibility Corporate Responsibility Audit Finance & Risk Management Finance & Risk Management Nominations & Corp Gov Nominations & Corp Gov Board Committees Executive aglresources.com

46. value ^ ^ s s

47. Our Core Values honesty value seeking

48. Where We’re Doing It Reducing leak response time Creating appointment times Payment history improvement at SouthStar Hold and handle times down at our Customer Care Center Reducing leak response time Creating appointment times Payment history improvement at SouthStar Hold and handle times down at our Customer Care Center $1100 $1000 $900 $1100 $1000 $900 AGLC Cost Per New Meter AGLC Cost Per New Meter 20022003 $140 $130 $120 $140 $130 $120 AGLC O&M Cost Per Customer AGLC O&M Cost Per Customer 20022003

49. Our Core Values generosity of spirit inside the lines honesty value seeking

50. V-Force 32,000 hours in 2002 32,000 hours in 2002 2 nd Habitat for Humanity house Polar Plunge for Special Olympics American Heart Association’s Heartwalk MLK Day United Way Tug-A-Plane

51. Volunteer of the Year Timothy Dasher Meter Reader Savannah service center Timothy Dasher Meter Reader Savannah service center

52. AGLR Employees

53. What’s Good For The Company?

54. 2002 the value is “here” marketers & constituents continuing to find the value 2003 strengthen our finances flawless execution asset use value

55. the real is still here at

56. value the real is still here at