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Atmos Energy's Mid-Tex Division Files to Significantly Lower Natural Gas Costs; Customers to Get Relief

Posted on: Tuesday, 24 January 2006, 21:00 CST

The Mid-Tex Division of Atmos Energy (NYSE:ATO) today filed with the Texas Railroad Commission to reduce the gas cost portion of customers' bills in February by approximately 36 percent. The Rider Gas Cost Recovery ("GCR") factor on a residential customer's bill will be reduced from $12.61 per thousand cubic feet (Mcf) in January to $8.02 per Mcf in February. The new adjusted gas cost recovery factor will go into effect with February billings.

The reduction sought by Atmos Energy could result in savings of approximately $50 for the average residential customer in February. Of course, colder than normal weather could result in the return of higher prices and higher consumption, which would ultimately reduce the savings.

"As we have said before, Atmos Energy does not make any money on the cost of gas. Therefore, as gas prices decline, we're able to pass the lower costs on to our customers, which should offer some much-needed relief," said Dick Erskine, president of Atmos Energy Mid-Tex Division. "Natural gas prices have moderated due to milder-than-expected weather in January, the continuing restoration of Gulf Coast production after Hurricane Katrina, and relatively high levels of natural gas storage nationally."

Reduced gas costs come on the heels of record-high natural gas prices - nearly double over the prior year. Erskine said customers were paying over $15 per Mcf in October and November before the price dropped to about $13 in December.

"High natural gas prices hurt our customer and hurt us too," said Erskine. "Higher gas prices require more call center staffing to answer customer concerns, and generally result in increased bill delinquencies. So while lower natural gas prices are good news for customers, they are welcome news for Atmos Energy too.

"We want the same thing that our customers want: reasonably priced natural gas and reliable service," Erskine added.

Atmos Energy Corporation, headquartered in Dallas, is the country's largest natural-gas-only distributor, serving about 3.2 million gas utility customers. Atmos Energy's utility operations serve more than 1,500 communities in 12 states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, Inc., operate in 22 states. They provide natural gas marketing and procurement services to industrial, commercial and municipal customers and manage company-owned natural gas storage and pipeline assets, including one of the country's largest intrastate natural gas pipeline systems. For more information, visit www.atmosenergy.com.

Source: Business Wire

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