AGLC Pipeline Replacement. On January 8, 1998, the Georgia Public Service Commission (“GPSC”) issued procedures and set a schedule for hearings regarding alleged pipeline safety violations. On July 21, 1998, the GPSC approved a settlement between AGLC and the staff of the GPSC that details a 10-year pipeline replacement program (“PRP) for approximately 2,300 miles of cast iron and bare steel pipe. October 1, 2004 marked the beginning of the seventh year of the original 10-year PRP. On June 10, 2005, AGLC and the GPSC entered into a Settlement Agreement that, among other things, extends AGLC’s PRP by five years to require that all replacements be completed by December 2013, with the timing of such replacements to be subsequently determined through discussions with GPSC staff. Under the Settlement Agreement, rates charged to customers will remain unchanged through April 30, 2010, but AGLC will recognize reduced base rate revenues of $5 million on an annual basis through April 30, 2010. The five-year total reduction in recognized base rate revenues of $25 million will be applied to the amount of costs incurred to replace pipe and subsequently recovered from customers. For a further description of environmental and pipeline replacement matters, see the AGL Resources’ 2007 10-K filing. SCHEDULE 7.2(i) EXISTING LIENS None SCHEDULE 7.8 AGREEMENTS PROHIBITING OR LIMITING LIENS
AGLC Pipeline Replacement. On January 8, 1998, the Georgia Public Service Commission (“GPSC”) issued procedures and set a schedule for hearings regarding alleged pipeline safety violations. On July 21, 1998, the GPSC approved a settlement between AGLC and the staff of the GPSC that details a 10-year pipeline replacement program for approximately 2,300 miles of cast iron and bare steel pipe. October 1, 2002 marked the beginning of the fifth year of the 10-year pipeline replacement program. The estimated total remaining capital costs of this program, as of March 31, 2003 is approximately $436.2 million. Capital expenditures and operation and maintenance costs incurred from the pipeline safety program are expected to be recovered by Holdings. For a further description of this matter, see "Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition – Critical Accounting Policies- Pipeline Replacement" in the 1st Quarter 2003 10-Q. SCHEDULE 7.2(h) EXISTING LIENS None. SCHEDULE 7.8 AGREEMENTS PROHIBITING OR LIMITING LIENS
