PR-08-161 -- Atmos Energy Increases Natural Gas Rates By 22% To 31%

Average Winter Heating Bills Could Increase By More Than $30 To $36 Per Month

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MAY 29, 2008

JEFFERSON CITY—More than 58,000 Atmos Energy Corporation (Atmos) consumers will see their natural gas rates increase by between 22 percent and 31 percent, depending on the district, under a filing that takes effect on June 1.  The higher rates are a result of the increase in the wholesale price of natural gas and could end up costing natural gas consumers an extra $30 to $36 per month to heat their homes this winter.     

These rates are a product of wholesale natural gas markets exempt from state regulation.  Gas distribution companies purchase gas for consumers and pass these costs directly on to consumers.  These costs typically make up approximately two-thirds of the average residential customers’ natural gas bill.  The PSC annually reviews the purchasing practices of regulated natural gas companies like Atmos to insure they are making prudent decisions on behalf of their customers.

Butler District: Residential customers currently pay approximately $0.70 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $0.92 per Ccf—an increase of approximately $0.22 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $471 to $618.  This estimated $147 increase will cost natural gas customers an average of $30 more per month for the period of November 1 through March 31. 

Rich Hill/Hume District: Residential customers currently pay approximately $1.01 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.23 per Ccf—an increase of approximately $0.22 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $680 to $827.  This estimated $147 increase will cost natural gas customers an average of $30 more per month for the period of November 1 through March 31. 

Kirksville District: Residential customers currently pay approximately $0.79 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.03 per Ccf—an increase of approximately $0.24 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $580 to $761.  This estimated $181 increase will cost natural gas customers an average of $36 more per month for the period of November 1 through March 31. 

Hannibal, Canton, Bowling Green, Palmyra District: Residential customers currently pay approximately $0.79 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.01 per Ccf—an increase of approximately $0.22 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $580 to $746.  This estimated $166 increase will cost natural gas customers an average of $33 more per month for the period of November 1 through March 31. 

SEMO District: Residential customers currently pay approximately $0.92 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.17 per Ccf—an increase of approximately $0.25 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $533 to $678.  This estimated $145 increase will cost natural gas customers an average of $29 more per month for the period of November 1 through March 31. 

Neelyville District: Residential customers currently pay approximately $0.84 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.09 per Ccf—an increase of approximately $0.25 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $482 to $627.  This estimated $145 increase will cost natural gas customers an average of $29 more per month for the period of November 1 through March 31. 

This is not a problem isolated to Missouri.  Natural gas consumers all over the country can expect similar increases and the PSC is encouraging customers to reduce their energy consumption.  Here are some points to consider:

-- Having the furnace checked and tuned-up if needed and replace furnace filters each month when dirty. 

-- Contacting your natural gas company to ask about budget billing.

-- Adding attic insulation if necessary.

-- Placing weather stripping around doors, using plastic film covering and caulking windows to keep heat from escaping from your home.

-- Having the chimney checked for blockage and closing fireplace dampers when the fireplace is not being used.

-- Setting the water heater temperature to 120 degrees.

-- Please use caution with gas-fired appliances.  Get professional help for any projects that are beyond your personal capabilities.

Other energy saving information can be found on the Missouri Public Service Commission website at www.psc.mo.gov; the Missouri Department of Natural Resources website at www.dnr.mo.gov; or the federal Department of Energy website at www.doe.gov .

The Missouri Public Service Commission is working with a number of other agencies including community action agencies across Missouri to provide information to consumers on natural gas price impacts and what consumers can do to reduce consumption to hold down winter heating costs.   

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