With all the gas a customer could possibly need, Alagasco is THE gas co. in Alabama. A unit of Birmingham, Alabama-based oil and gas company Energen, utility Alabama Gas Corporation (Alagasco) distributes natural gas to about 395,770 residential and 31,840 commercial and industrial customers in about half of the counties in the state. The utility also provides gas transportation services to large end users who purchase wholesale gas from suppliers. Alagasco has seven operating districts: Anniston, Birmingham, Gadsden, Montgomery, Opelika, Selma, and Tuscaloosa. The Alagasco distribution system includes 11,225 miles of mains and more than 11,980 miles of service lines.
Alagasco serves customers in more than 200 Alabama cities, towns, and other communities.
Alagasco distributes natural gas to residential, commercial, and industrial customers in about half of the counties in Alabama.
Recognizing the need for green energy options to reduce carbon emissions and dependence on foreign oil, the company has a fleet of natural gas vehicles (NGVs) designed to run only on natural gas and bi-fuel NGVs, which have two separate fueling systems, natural gas and conventional fuel (gasoline or diesel).
Alagasco saw an upward trend in revenues in 2009 to 2010. However, revenues declined in 2011 due to a decrease in gas prices and weaker customer demand.
Revenues decreased by 14% in 2011 due to a drop in gas costs passed on to customers of $44 million, and a decline in customer usage of $39 million. In 2011, Alagasco had a reduction in revenues of $6.7 million pre-tax to bring the return on its average equity to midpoint within the allowed range of return. Weather was 15.4% warmer in 2011 than in the prior year, depressing demand. Residential sales volumes declined 13.6% while commercial and industrial volumes decreased 9%. Transportation volumes fell 4%.
Alagasco's net income decreased by 1% in 2011 due to the drop in revenues and a decrease in net income related to the timing of rate recovery under Alagasco's rate-setting mechanisms.
Alagasco is a subsidiary of Energen.
Alagasco dates back to 1852 when the Montgomery City Council passed an ordinance authorizing the Montgomery Gas Light Company to provide gas lighting for that city. Following a series of mergers and expansions, the company became the Alabama Gas Corporation (Alagasco), a publicly traded entity, in 1953. – less