Atmos Energy Files for Gas Cost Adjustment in Colorado

November 5, 2004

Atmos Energy Corporation has filed with the Colorado Public Utilities Commission (COPUC) for a gas cost adjustment to reflect an increase in cost of natural gas it is buying for its Colorado customers. If approved by the commission, the increase takes effect November 1, 2004.

The gas cost adjustment, if approved by the COPUC, would increase the current residential gas commodity rate, which went into effect March 1, 2004, by 5.3 percent, from $0.88 cents per hundred cubic feet (ccf) to $0.93 cents per ccf. Gas commodity rates for commercial customers would increase by 5 percent, from $0.94 cents per ccf to $0.98 cents per ccf.

Atmos Energy officials said this increase comes about because the wholesale price of natural gas has increased significantly during the last several months. Demand for natural gas continues to grow due to its cleanliness and efficiency. Nationwide, natural gas remains consumers’ best home-heating value, according to the August 10th report from the U.S. Department of Energy’s Energy Information Administration.

"Atmos Energy does not make a profit on the natural gas we deliver and we never like to see the price of natural gas increase" said Gary Schlessman, president of Atmos Energy’s Colorado-Kansas Division. "Our customers are charged, penny-for-penny, the same price for natural gas that we are charged."

Atmos Energy purchases natural gas on behalf of its customers and passes on the cost of the natural gas to them without marking up the price. The utility earns its income from fees for delivering the gas to customers and for maintaining its utility distribution system. The rates charged for delivering natural gas to customers are regulated by the COPUC.

"When we increased gas commodity rates in March, we knew there was a possibility that we would have to raise commodity rates again if gas prices rose above our anticipated projections for the winter heating season," said Joe Christian, vice president of rates and regulations for Atmos Energy’s Colorado-Kansas Division. "Fortunately, we have already purchased 50 percent of our projected winter natural gas supply. These purchases were made during the summer and fall when gas prices were lower than they are today. This should help our customers significantly." (See Advertisement elsewhere in this issue of the Kiowa County Press).

Atmos Energy encourages residential customers to sign up for its levelized budget billing program to help even out their natural gas bills, says Karen Wilkes, Atmos Energy’s manager of public affairs in Colorado.

"It only takes a few moments to sign up for budget billing. Customers can call our toll-free number at 1-888-442-1313, 24 hours a day, 7 days a week, or they can enroll on our Web site at www.atmosenergy.com," Wilkes said.

"There is still time to add insulation and caulking to your ‘to do’ list before cold weather really hits. Purchasing a set-back thermostat is always a good investment, but even setting your thermostat one degree lower than you normally do can lower your home heating costs. Be sure to buy one that works best for your needs. Another way to save: schedule an appointment to have your furnace inspected and cleaned by a heating contractor. It is money well spent in saving energy dollars," Wilkes said.

Consumers who need help paying their heating bills can call toll-free 1-866-432-8435. In addition, consumers who meet the income guidelines for the federally funded Low Income Energy Assistance Program, or LEAP, automatically qualify to have their homes weatherized by Energy Saving Partners.

LEAP applications are available at the toll-free number above or at many local social service agencies. LEAP provides energy assistance to individuals and families throughout Colorado.

Energy Outreach Colorado (EOC) also assists consumers faced with unexpected needs caused by a layoff or a serious illness or injury. EOC supports LEAP by delivering additional funds from the utility industry and compassionate donors. Atmos Energy works closely with EOC by donating thousands of dollars a year itself to the organization and by matching every dollar of customer donations.