SOUTHERN Co GAS (GAS) 10-Q 27 Apr 10 2010 Q1 Quarterly report Financial data

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009	12 Months Ended Dec. 31, 2009
Current assets
Cash and cash equivalents	$19	$21	$26
Receivables
Energy marketing receivables (Note 1)	563	326	615
Gas, unbilled and other receivables	417	458	362
Less allowance for uncollectible accounts	21	20	14
Total receivables	959	764	963
Inventories, net (Note 1)	370	348	672
Derivative financial instruments - current portion (Note 1 and Note 2)	205	202	188
Unrecovered regulatory infrastructure program costs - current portion (Note 1)	45	42	43
Unrecovered environmental remediation costs - current portion (Note 1)	10	16	11
Other current assets	41	38	97
Total current assets	1,649	1,431	2,000
Long-term assets and other deferred debits
Property, plant and equipment	6,025	5,592	5,939
Less accumulated depreciation	1,814	1,706	1,793
Property, plant and equipment-net	4,211	3,886	4,146
Goodwill	418	418	418
Unrecovered regulatory infrastructure program costs (Note 1)	258	177	223
Unrecovered environmental remediation costs (Note 1)	159	121	161
Derivative financial instruments (Note 1 and Note 2)	56	48	52
Other	74	76	74
Total long-term assets and other deferred debits	5,176	4,726	5,074
Total assets	6,825	6,157	7,074
Current liabilities
Energy marketing trade payable (Note 1)	620	342	524
Current portion of long-term debt (Note 5)	301	1	1
Accounts payable - trade	219	193	237
Short-term debt (Note 5)	153	402	601
Accrued expenses	137	151	132
Accrued regulatory infrastructure program costs - current portion (Note 1)	75	43	55
Derivative financial instruments - current portion (Note 1 and Note 2)	74	43	52
Customer deposits	52	58	41
Accrued environmental remediation liabilities - current portion (Note 1 and Note 6)	31	20	25
Other current liabilities	121	95	104
Total current liabilities	1,783	1,348	1,772
Long-term liabilities and other deferred credits
Long-term debt (Note 5)	1,674	1,675	1,974
Accumulated deferred income taxes	711	586	695
Accumulated removal costs (Note 1)	186	194	183
Accrued regulatory infrastructure program costs (Note 1)	169	126	155
Accrued pension obligations (Note 3)	146	188	159
Accrued environmental remediation liabilities (Note 1 and Note 6)	113	85	119
Accrued postretirement benefit costs (Note 3)	36	45	38
Derivative financial instruments (Note 1 and Note 2)	8	8	10
Other long-term liabilities and other deferred credits	148	139	150
Total long-term liabilities and other deferred credits	3,191	3,046	3,483
Total liabilities and other deferred credits	4,974	4,394	5,255
Commitments and contingencies (Note 6)
Equity
AGL Resources Inc. common shareholders' equity, $5 par value 750,000,000 shares authorized	1,834	1,734	1,780
Noncontrolling interest (Note 4)	17	29	39
Total equity	1,851	1,763	1,819
Total liabilities and equity	$6,825	$6,157	$7,074

Parenthetical Information for S

Parenthetical Information for Statements of Financial Position
	Mar. 31, 2010	Dec. 31, 2009	Mar. 31, 2009
Common shareholders' equity, par value	5	5	5
Common shareholders' equity, shares authorized	750,000,000	750,000,000	750,000,000

1_UNAUDITED CONDENSED CONSOLIDA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Income Statement [Abstract]
Operating revenues	$1,003	$995
Operating expenses
Cost of gas	571	589
Operation and maintenance	125	125
Depreciation and amortization	40	39
Taxes other than income taxes	14	12
Total operating expenses	750	765
Operating income	253	230
Other income	2	2
Interest expense, net	(28)	(25)
Earnings before income taxes	227	207
Income tax expense	82	72
Net income	145	135
Net income attributable to the noncontrolling interest	11	16
Net income attributable to AGL Resources Inc.	$134	$119
Per common share data (Note 1)
Basic earnings per common share attributable to AGL Resources Inc. common shareholders	1.74	1.55
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders	1.73	1.55
Cash dividends declared per common share	0.44	0.43
Weighted-average number of common shares outstanding (Note 1)
Basic	77.2	76.7
Diluted	77.6	76.8

2_UNAUDITED CONDENSED CONSOLIDA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $)
In Millions, except Share data	Common Stock [Member]	Accumulated Other Comprehensive Income [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Common stock shares, Beginning Balance at Dec. 31, 2008	76,900,000
AGL Resources Inc. Common Shareholders Equity, Beginning Balance at Dec. 31, 2008	$390	($134)	$676	$763	($43)	$32	$1,684
Net income				119		16	135
Other comprehensive loss		(7)				(4)	(11)
Dividends on common stock				(33)	1		(32)
Distributions to noncontrolling interest						(15)	(15)
Issuance of treasury shares, amount			(6)	(2)	9		1
Issuance of treasury shares, shares	300,000
Stock-based compensation expense (net of taxes) (Note 1)			1				1
Common stock shares, Ending Balance at Mar. 31, 2009	77,200,000
AGL Resources Inc. Common Shareholders Equity, Ending Balance at Mar. 31, 2009	390	(141)	671	847	(33)	29	1,763
Common stock shares, Beginning Balance at Dec. 31, 2009	77,500,000
AGL Resources Inc. Common Shareholders Equity, Beginning Balance at Dec. 31, 2009	390	(116)	679	848	(21)	39	1,819
Net income				134		11	145
Other comprehensive loss		(2)					(2)
Dividends on common stock			(1)	(34)	2		(33)
Purchase of additional ownership interest in SouthStar		(1)	(51)			(6)	(58)
Distributions to noncontrolling interest						(27)	(27)
Issuance of treasury shares, amount			(9)		12		3
Issuance of treasury shares, shares	300,000
Stock-based compensation expense (net of taxes) (Note 1)			4				4
Common stock shares, Ending Balance at Mar. 31, 2010	77,800,000
AGL Resources Inc. Common Shareholders Equity, Ending Balance at Mar. 31, 2010	$390	($119)	$622	$948	($7)	$17	$1,851

3_Parenthetical Information for

Parenthetical Information for Statements of Equity (USD $)
	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Statement of Stockholders' Equity [Abstract]
Dividends on common stock, per share	0.44	0.43

4_UNAUDITED CONDENSED CONSOLIDA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Comprehensive income attributable to AGL Resources Inc. (net of tax)
Net income attributable to AGL Resources Inc.	$134	$119
Derivative financial instruments unrealized losses arising during the period	(6)	(9)
Reclassification of derivative financial instruments realized losses included in net income	4	2
Other comprehensive loss	(2)	(7)
Comprehensive income (Note 1)	132	112
Comprehensive income (loss) attributable to noncontrolling interest (net of tax)
Net income attributable to the noncontrolling interest	11	16
Derivative financial instruments unrealized losses arising during the period	(1)	(5)
Reclassification of derivative financial instruments realized losses included in net income	1	1
Other comprehensive loss	0	(4)
Comprehensive income (Note 1)	11	12
Total comprehensive income (net of tax)
Net income	145	135
Derivative financial instruments unrealized losses arising during the period	(7)	(14)
Reclassification of derivative financial instruments realized losses included in net income	5	3
Other comprehensive loss	(2)	(11)
Comprehensive income (Note 1)	$143	$124

5_UNAUDITED CONDENSED CONSOLIDA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$145	$135
Depreciation and amortization	40	39
Deferred income taxes	14	(10)
Change in derivative financial instrument assets and liabilities	(1)	(10)
Inventories	302	315
Energy marketing receivables and energy marketing trade payables, net	148	26
Accrued expenses	5	38
Gas and trade payables	(18)	(9)
Gas, unbilled and other receivables	(48)	18
Other - net	83	69
Net cash flow provided by operating activities	670	611
Cash flows from investing activities
Payments to acquire property, plant and equipment	(114)	(97)
Net cash flow used in investing activities	(114)	(97)
Cash flows from financing activities
Net payments and borrowings of short-term debt	(448)	(463)
Purchase of additional 15% ownership interest in SouthStar	(58)	0
Dividends paid on common shares	(33)	(32)
Distribution to noncontrolling interest	(27)	(15)
Issuance of treasury shares and other	3	1
Net cash flow used in financing activities	(563)	(509)
Net (decrease) increase in cash and cash equivalents	(7)	5
Cash and cash equivalents at beginning of period	26	16
Cash and Cash equivalents at end of period	19	21
Cash paid during the period for
Interest	34	29
Income taxes	$1	$16

Accounting Policies and Methods

Accounting Policies and Methods of Application
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Accounting Policies and Methods of Application	Note 1 - Accounting Policies and Methods of Application General AGL Resources Inc. is an energy services holding company that conducts substantially all its operations through its subsidiaries. Unless the context requires otherwise, references to "we," "us," "our," "the company," or "AGL Resources" mean consolidated AGL Resources Inc. and its subsidiaries. The year-end condensed statement of financial position data was derived from our audited financial statements, but does not include all disclosures required by GAAP. We have prepared the accompanying unaudited condensed consolidated financial statements under the rules of the SEC. Under such rules and regulations, we have condensed or omitted certain information and notes normally included in financial statements prepared in conformity with GAAP. However, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of our financial results for the interim periods. You should read these condensed consolidated financial statements in conjunction with our consolidated financial statements and related notes included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 4, 2010. Due to the seasonal nature of our business, our results of operations for the three months ended March 31, 2010 and 2009, and our financial condition as of December 31, 2009, and March 31, 2010 and 2009, are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period. Basis of Presentation Our condensed consolidated financial statements include our accounts, the accounts of our majority-owned and controlled subsidiaries and the accounts of variable interest entities for which we are the primary beneficiary. This means that our accounts are combined with our subsidiaries' accounts. We have eliminated any intercompany profits and transactions in consolidation; however, we have not eliminated intercompany profits when such amounts are probable of recovery under the affiliates' rate regulation process. Use of Accounting Estimates The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities. We based our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances, and we evaluate our estimates on an ongoing basis. Each of our estimates involves complex situations requiring a high degree of judgment either in the application and interpretation of existing financial accounting literature or in the development of estimates that impact our financial statements. The most significant estimates include our regulatory infrastructure program accruals, ERC liability accruals, allowance for uncollectible accounts, contingencies, pension and postretirement obligations, derivative and hedging activities and provision for incom

Derivative Financial Instrument

Derivative Financial Instruments
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Derivative Financial Instruments	Note 2 Derivative Financial Instruments Derivative Financial Instruments Our risk management activities are monitored by our Risk Management Committee, which consists of members of senior management and is charged with reviewing and enforcing our risk management activities and policies. Our use of derivative financial instruments and physical transactions is limited to predefined risk tolerances associated with pre-existing or anticipated physical natural gas sales and purchases and system use and storage. We use the following types of derivative financial instruments and physical transactions to manage natural gas price, interest rate, weather, automobile fuel price and foreign currency risks: forward contracts futures contracts options contracts financial swaps treasury locks weather derivative contracts storage and transportation capacity transactions; and foreign currency forward contracts Our derivative financial instruments do not contain any material credit-risk-related or other contingent features that could increase the payments for collateral that we post in the normal course of business when our financial instruments are in net liability positions. For information on our energy marketing receivables and payables, which do have credit-risk-related or other contingent features, refer to Note 1. There have been no significant changes to our derivative financial instruments, as described in Note 2 to our consolidated financial statements and related notes included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 4, 2010. Derivative Financial Instruments Fair Value Hierarchy The following table sets forth, by level within the fair value hierarchy, our derivative financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2010. As required by the authoritative guidance, derivative financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. Recurring fair values Natural gas derivative financial instruments March 31, 2010 December 31, 2009 March 31, 2009 In millions Assets (1) Liabilities Assets (1) Liabilities Assets (1) Liabilities Quoted prices in active markets (Level 1) $ 44 $ (109 ) $ 36 $ (37 ) $ 39 $ (198 ) Significant other observable inputs (Level 2) 185 (46 ) 172 (52 ) 163 (19 ) Netting of cash collateral 32 73 30 27 48 166 Total carrying value (2) (3) $ 261 $ (82 ) $ 238 $ (62 ) $ 250 $ (51 ) (1) $2 million premium at December 31, 2009associated with weather derivatives has been excluded as they are based on intrinsic value, not fair value. (2) There were no significant unobservable inputs (Level 3) for any of the periods presented. (3) There were no significant

Employee Benefit Plans

Employee Benefit Plans
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Employee Benefit Plans	Note 3 - Employee Benefit Plans Pension Benefits We sponsor two tax-qualified defined benefit retirement plans for our eligible employees, the AGL Resources Inc. Retirement Plan (AGL Retirement Plan) and the Employees' Retirement Plan of NUI Corporation (NUI Retirement Plan). A defined benefit plan specifies the amount of benefits an eligible participant eventually will receive using information about the participant. Following are the combined cost components of our two defined pension plans for the periods indicated. Three months ended March 31, In millions 2010 2009 Service cost $ 3 $ 2 Interest cost 7 7 Expected return on plan assets (8 ) (7 ) Amortization of prior service cost (1 ) (1 ) Recognized actuarial loss 3 2 Net pension benefit cost $ 4 $ 3 Postretirement Benefits We sponsor a defined benefit postretirement health care plan for our eligible employees, the Health and Welfare Plan for Retirees and Inactive Employees of AGL Resources Inc. (AGL Postretirement Plan). Eligibility for these benefits is based on age and years of service. The AGL Postretirement Plan includes medical coverage for all eligible AGL Resources employees who were employed as of June 30, 2002, if they reach retirement age while working for us. Additionally, the AGL Postretirement Plan provides life insurance for all employees if they have ten years of service at retirement. The state regulatory commissions have approved phase-ins that defer a portion of other postretirement benefits expense for future recovery. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 provided for a prescription drug benefit under Medicare (Part D) as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that was at least actuarially equivalent to Medicare Part D. This cash subsidy, known as the Retiree Drug Subsidy, was tax-free and companies were allowed to deduct the benefits paid to retirees. In March 2010, President Obama signed into law HR2590, the Patient Protection and Affordable Care Act, and the U.S. Congress passed HR4872, Reconciliation Act of 2010, which amends HR2590. With this healthcare reform, the cash subsidy is no longer tax-free. Accounting guidance requires that companies record the tax impacts of this healthcare reform on the date of enactment. However, we did not receive the Retiree Drug Subsidy and therefore did not recognize any additional expense. Following are the cost components of the AGL Postretirement Plan for the periods indicated. Three months ended March 31, In millions 2010 2009 Service cost $ - $ - Interest cost 1 1 Expected return on plan assets (1 ) (1 ) Amortization of prior service cost (1 ) (1 ) Recognized actuarial loss 1 1 Net postretirement benefit cost $ - $ - Contributions Our employees do not contribute to the retirement plans. We fund the qualified pension plans by contributing at least the minimum amount required by applicable regulations and as recommended by our actuary. However, we may also contribute in excess of

Variable Interest Entity

Variable Interest Entity
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Variable Interest Entity	Note 4 Variable Interest Entity SouthStar, a joint venture owned by us and Piedmont, markets natural gas and related services under the trade name GNG to retail customers primarily in Georgia, and under various other trade names to retail customers in Ohio and Florida and to commercial and industrial customers, principally in Alabama,North Carolina,South Carolina and Tennessee. The primary risks associated with SouthStar are discussed in our risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 4, 2010. SouthStar utilizes derivative financial instruments to manage natural gas price and weather risks. See Note 2 for additional disclosures of these instruments. GNG is currently involved in litigation which is discussed further in Note 6. In July 2009, we entered into an amended joint venture agreement with Piedmont pursuant to which we purchased an additional 15% ownership interest in SouthStar for $58 million, effective January 1, 2010, thus increasing our ownership interest to 85%. This was accounted for as an acquisition of equity interests. Piedmont retained the remaining 15% share. We have no further option rights to Piedmonts remaining 15% ownership interest and all significant management decisions continue to require approval by both owners. Piedmonts interest in SouthStar is reflected as a separate component of equity on our condensed consolidated statement of financial position. The following table provides the effects the purchase had onour equity. In millions Premium on common stock Accumulated other comprehensive loss Total Purchase of additional 15% ownership interest $ (51 ) $ (1 ) $ (52 ) Earnings in 2010 are allocated entirely in accordance with the ownership interests. Earnings in 2009 were allocated 75% to us and 25% to Piedmont except for earnings related to customers in Ohio and Florida, which were allocated 70% to us and 30% to Piedmont. Earnings allocated to Piedmont are presented separately in our condensed consolidated statements of income as net income attributable to the noncontrolling interest. We have determined that SouthStar is a variable interest entity (VIE) and we are the primary beneficiary of SouthStars activities as defined by the authoritative guidance related to consolidations, which requires us to consolidate the VIE. We have determined that SouthStar is a VIE because our equal voting rights with Piedmont are not proportional to our economic obligation to absorb 85% of any losses or residual returns from SouthStar. On January 1, 2010 we adopted authoritative accounting guidance that required us to reassess the determination that we are the primary beneficiary of the VIE based on whether we have the power to direct matters that most significantly impact the activities of the VIE, and have the obligation to absorb losses or the right to receive benefits of the VIE. The adoption of this guidance had no effect on our condensed consolidated results of operations, cash flows or financial position because we concluded that SouthStars accounts should continue to be consolidated with the accounts of A

Debt

Debt
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Debt	Note 5 - Debt Our issuance of various securities, including long-term and short-term debt, is subject to customary approval, authorization or review by state and federal regulatory bodies, including state public service commissions, the SEC and the FERC pursuant to the Energy Policy Act of 2005. The following table provides more information on our various debt securities. For more information on our debt, see Note 6 in our consolidated financial statements and related notes in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 4, 2010. March 31, 2010 March 31, 2009 In millions Year(s) due Weighted average interest rate (1) Outstanding Outstanding at December 31, 2009 Weighted average interest rate (2) Outstanding Short-term debt Senior notes (3) 2011 7.1 % $ 300 $ - - % $ - Capital leases 2010-2011 4.9 1 1 4.9 1 Total current portion of long-term debt 7.1 301 1 4.9 1 Commercial paper 2010 0.4 153 601 1.2 335 SouthStar line of credit - - - - 1.1 45 Sequent lines of credit - - - - 0.9 22 Total excluding current portion of long-term debt 0.4 153 601 1.2 402 Total short-term debt 3.3 % $ 454 $ 602 1.1 % $ 403 Long-term debt - net of current portion Senior notes 2013-2034 5.5 % $ 1,275 $ 1,575 5.9 % $ 1,275 Gas facility revenue bonds 2022-2033 1.2 200 200 1.3 200 Medium-term notes 2012-2027 7.8 196 196 7.8 196 Capital leases 2013 4.9 3 3 4.9 4 Total long-term debt(3) 5.1 % (4) $ 1,674 $ 1,974 5.5 % $ 1,675 Total debt 4.6 % $ 2,128 $ 2,576 4.3 % $ 2,078 (1) For the three months ended March 31, 2010. (2) For the three months ended March 31, 2009. (3) Our estimated fair value was $2,080 million as of March 31, 2010, $2,060 million as of December 31, 2009 and $1,633 million as of March 31, 2009. We estimate the fair value using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality and risk profile.In determining the market interest yield curve, we considered our currently assigned ratings for unsecured debt of BBB+ by SP, Baa1 by Moodys and A- by Fitch. (4) Including the $300 million of senior notes due in 2011, the weighted average interest rate for the three months ended March 31, 2010 was 5.5%. Default Events Our Credit Facility financial covenants require us to maintain a ratio of total debt to total capitalization of no greater than 70%. Our ratio of total debt to total capitalization calculation contained in our debt covenant includes standby letters of credit, surety bonds and the exclusion of other comprehensive income pension adjustments. Adjusting for these items, our debt-to-equity calculation, as defined by our Credit Facility, was 52% at March 31, 2010, 57% at December 31, 2009 and 53% at March 31, 2009. These amounts are within our required and targeted ranges. Our debt-to-equity calculation, as calculated

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Commitments and Contingencies	Note 6 - Commitments and Contingencies Contractual Obligations and Commitments We have incurred various contractual obligations and financial commitments in the normal course of our operating and financing activities that are reasonably likely to have a material effect on liquidity or the availability of capital resources. Contractual obligations include future cash payments required under existing contractual arrangements, such as debt and lease agreements. These obligations may result from both general financing activities and from commercial arrangements that are directly supported by related revenue-producing activities. There were no significant changes to our contractual obligations described in Note 7 to our consolidated financial statements and related notes as filed in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 4, 2010. Contingent financial commitments, such as financial guarantees, represent obligations that become payable only if certain predefined events occur and include the nature of the guarantee and the maximum potential amount of future payments that could be required of us as the guarantor. The following table illustrates our contingent financial commitments as of March 31, 2010. Commitments due before December 31, In millions Total 2010 2011 thereafter Standby letters of credit and performance and surety bonds $ 16 $ 10 $ 6 Litigation We are involved in litigation arising in the normal course of business. The ultimate resolution of such litigation, including the discussion below is not expected to have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows. In February 2008, a class action lawsuit was filed in the Superior Court of Fulton County in the State of Georgia against GNG alleging that it charged its customers of variable rate plans prices for natural gas that were in excess of the published price, failed to give proper notice regarding the availability of potentially lower price plans and that it changed its methodology for computing variable rates. This lawsuit was dismissed in September 2008. The plaintiffs appealed the dismissal of the lawsuit and, in May 2009, the Georgia Court of Appeals reversed the lower courts order. In June 2009, GNG filed a petition for reconsideration with the Georgia Supreme Court. In October 2009, the Georgia Supreme Court agreed to review the Court of Appeals decision and held oral arguments in January 2010. In March 2010 the Georgia Supreme Court upheld the Court of Appeals decision. The casewill be remanded back to the Superior Court of Fulton County for furtherproceedings. GNG asserts that no violation of law or Georgia Commission rules has occurred. Environmental Remediation Costs We are subject to federal, state and local laws and regulations governing environmental quality and pollution control. These laws and regulations require us to remove or remedy the effect on the environment of the disposal or release of specified substances at current and former operating sites. For more information on our environmental

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Segment Information	Note 7 - Segment Information We generate nearly all our operating revenues through the sale, distribution, transportation and storage of natural gas. Our operating segments comprise revenue-generating components of our company for which we produce separate information, internally, that we regularly use to make operating decisions and assess performance. Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. We manage our businesses through four operating segments - distribution operations, retail energy operations, wholesale services and energy investments and a nonoperating corporate segment. Our distribution operations segment is the largest component of our business and includes natural gas local distribution utilities in six states - Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia. These utilities construct, manage, and maintain intrastate natural gas pipelines and distribution facilities. Although the operations of our distribution operations segment are geographically dispersed, the operating subsidiaries within the distribution operations segment are regulated utilities, with rates determined by individual state regulatory commissions. These natural gas distribution utilities have similar economic and risk characteristics. We are also involved in several related and complementary businesses. Our retail energy operations segment includes retail natural gas marketing to end-use customers primarily in Georgia. Our wholesale services segment includes natural gas asset management and related logistics activities for each of our utilities as well as for nonaffiliated companies, natural gas storage arbitrage and related activities. Our energy investments segment includes a number of aggregated businesses that are related and complementary to our primary business. The most significant is the development and operation of high-deliverability natural gas storage assets. Our corporate segment includes intercompany eliminations and aggregated subsidiaries that are not significant enough on a stand-alone basis to warrant treatment as an operating segment, and that do not fit into one of our four operating segments. We evaluate segment performance based primarily on the non-GAAP measure of EBIT, which includes the effects of corporate expense allocations. EBIT is a non-GAAP measure that includes operating income and other income and expenses. Items we do not include in EBIT are financing costs, including interest and debt expense and income taxes, each of which we evaluate on a consolidated level. We believe EBIT is a useful measurement of our performance because it provides information that can be used to evaluate the effectiveness of our businesses from an operational perspective, exclusive of the costs to finance those activities and exclusive of income taxes, neither of which is directly relevant to the efficiency of those operations. You should not consider EBIT an alternative to, or a more meaningful indicator of, our operating performance than operating income or net income a

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information Text Block
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 20, 2010	Jun. 30, 2009
Entity Text Block
Entity Registrant Name	AGL RESOURCES INC
Entity Central Index Key	0001004155
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	Yes
Entity Current Reporting Status	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$2,458,113,574
Entity Common Stock Shares Outstanding		77,849,493
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1