Piedmont Natural Gas and AGL Resources Reach Agreement to Restructure Ownership Interests...

Piedmont Natural Gas and AGL Resources Reach Agreement to Restructure
Ownership Interests in SouthStar Energy Services
Piedmont will sell 50 percent of current interest in SouthStar to AGL
Resources for $57.5 million

CHARLOTTE, N.C., July 30 /PRNewswire-FirstCall/ -- Piedmont Energy Company, a
subsidiary of Piedmont Natural Gas (NYSE: PNY) and Georgia Natural Gas
Company, a subsidiary of AGL Resources (NYSE: AGL) today announced an
agreement to restructure their ownership interests in SouthStar Energy
Services (SouthStar). Under the terms of the agreement, Piedmont will sell
half of its 30 percent interest in SouthStar to AGL Resources effective
January 1, 2010, retaining a 15 percent earnings and ownership share in
SouthStar after the sale. Piedmont will receive $57.5 million from AGL
Resources resulting in an estimated one-time gain in 2010 of $0.41 per diluted
share.

The agreement, which has been approved by both companies' boards of directors,
also resolves issues concerning AGL Resources' option to purchase Piedmont's
ownership interest in SouthStar. As part of the agreement, AGL Resources will
not have any further option rights to Piedmont's remaining 15% ownership
interest.

The agreement is subject to the approval and consent of the Georgia Public
Service Commission.

Commenting on the agreement, Piedmont's Chairman, President and CEO, Thomas E.
Skains said, "We are pleased to conclude this agreement with AGL and believe
our strategic interests in SouthStar will be more closely aligned as a result.
This has been a good partnership for both of our companies and we value the
relationship we have with AGL. The nature of this agreement, which will
simplify and strengthen our joint venture involvement in SouthStar, also
reaffirms the core focus of our business as the safe and efficient
distribution of natural gas to our growing utility markets in North Carolina,
South Carolina, and Tennessee."

John W. Somerhalder II, AGL Resources' Chairman, President and CEO said,
"Piedmont has always been a very good partner, and we look forward to
continuing our longstanding relationship with them. We reached an agreement
that works well for both companies in terms of providing certainty around the
partnership structure and creating value for our respective shareholders."

Forward-looking Statement
This press release contains forward-looking statements. These statements are
based on management's current expectations and information currently available
and are believed to be reasonable and are made in good faith. However, the
forward-looking statements are subject to future events, risks, uncertainties
and other factors that could cause actual results to differ materially from
those projected in the statements. Factors that may make the actual results
differ from anticipated results include, but are not limited to, rate of
customer growth, new legislation and regulations and application of existing
laws and regulations, economic and capital market conditions, the cost and
availability of natural gas, weather conditions and other uncertainties, all
of which are difficult to predict and some of which are beyond our control.
For these reasons, you should not rely on these forward-looking statements
when making investment decisions. The words "expect," "believe," "project,"
"anticipate," "intend," "should," "could," "will," "assume," "can,"
"estimate," "forecast," "future," "indicate," "outlook," "plan," "predict,"
"seek," "target," "would," and variations of such words and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are only as of the date they are made and we do not
undertake any obligation to update publicly any forward-looking statement,
either as a result of new information, future events or otherwise. More
information about the risks and uncertainties relating to these
forward-looking statements may be found in Piedmont's latest Forms 10-K and
10-Q, which are available on the SEC's website at http://www.sec.gov.

About Piedmont Natural Gas
Piedmont Natural Gas is an energy services company primarily engaged in the
distribution of natural gas to more than one million residential, commercial
and industrial utility customers in North Carolina, South Carolina and
Tennessee, including 61,000 customers served by municipalities who are
wholesale customers. Our subsidiaries are invested in joint venture,
energy-related businesses, including unregulated retail natural gas marketing,
interstate natural gas storage and intrastate natural gas transportation.

Additional information about Piedmont is available on the Internet at
http://www.piedmontng.com.

About AGL Resources

AGL Resources (NYSE: AGL), an Atlanta-based energy services company, serves
approximately 2.3 million customers in six states. The company also owns
Houston-based Sequent Energy Management, an asset manager serving natural gas
wholesale customers throughout North America. As a 70 percent owner in the
SouthStar partnership, AGL Resources markets natural gas to consumers in
Georgia under the Georgia Natural Gas brand. The company also owns and
operates Jefferson Island Storage & Hub, a high-deliverability natural gas
storage facility near the Henry Hub in Louisiana. For more information, visit
www.aglresources.com.

SOURCE Piedmont Natural Gas

David L. Trusty - Media, +1-704-731-4391, david.trusty@piedmontng.com, John
Sutphin - Investor Relations, +1-704-731-4314, john.sutphin@piedmontng.com,
both of Piedmont Natural Gas Company