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May 7, 2009

Atmos Announces 61% Price Cut for Natural Gas Customers

JEFFERSON CITY - More than 58,000 Atmos Energy Corporation (Atmos) customers will see a significant drop in their natural gas rates from rates set in November under a filing that will take effect on May 1, 2009.

“This is certainly good news for Atmos natural gas customers,” said PSC chairman Robert M. Clayton III. “The cost of natural gas from wholesale suppliers has dropped significantly since the record high prices of last summer and customer rates are reflecting that. This is the second rate decrease for Atmos customers since June and the reduction that will take effect this Friday is substantial.”

“Still, we don’t know how long these lower natural gas prices will last. That is why it is imperative that all consumers continue to look for ways to take control of their energy costs through efforts at conservation and energy efficiency,” Clayton said. In the Hannibal, Canton, Bowling Green, Palmyra District, residential customers currently pay approximately $0.95 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.38 per Ccf—a decrease of approximately $0.57 per Ccf. This represents an approximate 61% decrease from the PGA rate that was set on November 1, 2008.

Atmos serves Hannibal, Canton, Bowling Green, Palmyra District customers in the Missouri counties of Clark, Lewis, Knox, Marion, Pike, Ralls and Scotland.

Residential customers in the Bulter District currently pay approximately $0.92 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.35 per Ccf—a reduction of approximately $0.57 per Ccf. This represents an approximate 62% drop from the PGA rate that was set on March 1, 2009. Atmos serves Butler District customers in the Missouri counties of Bates, Cass, Henry and St. Clair.

Residential customers in the Kirksville district currently pay approximately $0.96 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.49 per Ccf—a decrease of approximately $0.47 per Ccf. This represents an approximate 49% decrease from the PGA rate that was set on November 1, 2008. Atmos serves Kirksville District customers in the Missouri counties of Macon, Adair and Schuyler.

Residential customers in SEMO district currently pay approximately $0.97 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.38 per Ccf—a decrease of approximately $0.59 per Ccf. This represents an approximate 61% decrease from the PGA rate that was set on November 1, 2008. Atmos serves SEMO District customers in the Missouri counties of New Madrid, Pemiscot, Ripley, Cape Girardeau, Dunklin, Scott, Iron, Wayne, Stoddard and Mississippi.

Approximately 65% to 75% of a customer’s natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.


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