Atmos Energy wants what our customers want: reliable supplies of natural gas at predictable and affordable prices. Atmos Energy is concerned about the effect of higher gas costs on customers. We are thankful that natural gas prices have returned to a more normal level for the 2006-2007 heating season. Atmos Energy customers can expect lower prices this winter, if current weather forecasts and supply levels do not change. The federal government's Energy Information Administration (EIA) has issued a similar forecast for the upcoming winter. The EIA short term energy forecast predicts natural gas expenditures could be approximately 13 percent lower than last year for the average U.S. household. Some regions will experience more or less savings, depending on the weather and natural gas usage.

We understand that record prices for natural gas in the 2005-2006 winter season were difficult for customers. That's why we began advising everyone during the summer of 2005 that prices would be significantly higher.

Why Did Prices Rise?
Natural gas is the nation's most popular home heating fuel (58 percent of homes). Due, in part, to effects of Hurricanes Katrina and Rita on energy production in the Gulf of Mexico, wholesale natural gas prices increased substantially. It may surprise customers to know that five months after Hurricane Katrina more than 15 percent of the natural gas facilities in the Gulf were still off line, due to damage. Natural gas prices have also risen in recent years because the demand for natural gas has increased faster than gas supplies. Factors include: electric power generation using more natural gas and higher oil prices. Quite simply, it is supply and demand.

What you can do
The new Energy Act of 2005 will encourage production and should result in stabilized prices once more natural gas production comes on line. We need to encourage Congress to allow more gas exploration in Western states and offshore. America needs more supply to lower prices. You can easily send a message to your Senator or Representative by clicking here: Send a message now!.

Weather
Weather remains the No. 1 factor in home-heating costs. The National Oceanic Atmospheric Administration (NOAA) predicts this winter will be 6 percent colder than last winter but still slightly warmer than normal. That means customers are likely to use more natural gas to stay warm. It's important to understand that customers pay only what Atmos Energy has already paid – and not a penny more – for natural gas. We buy gas on behalf of customers. We simply recover the cost of the gas from our customers with no markup. Atmos Energy makes no profit on the cost of gas charged to customers; its earnings come from the rates it charges for delivering natural gas. Our delivery fee is regulated by state and/or local government.

We thank all of our customers for their patience and understanding this winter. Atmos Energy does everything possible to deliver natural gas to customers in a safe and affordable manner. We are in this together.