Atmos Energy Corporation CEO Praises New Energy Policy: Cautions Winter Gas Prices to Stay High.

DALLAS -- Atmos Energy Corporation (NYSE:ATO) Chairman, president and CEO Robert W. Best praised passage by Congress today of a national energy policy, but cautioned that it will not be enough to reduce heating bills this winter.

"A strategic energy plan for America is long overdue, in order to increase supply and reduce demand for natural gas, which eventually should lead to lower prices for residential and commercial customers," said Best, who is past-chairman of the American Gas Association. "Passage of the energy bill is like football players arriving for training camp. It's a vital step but a long way to the Superbowl."

"Natural gas customers should be prepared for winter heating charges that are higher than last year, because supplies are barely keeping up with demand," Best said. "Estimates of future wholesale prices for winter deliveries of natural gas are 15-20 percent higher than last year."

Atmos Energy does not make any profit from higher natural gas prices, Best noted. Customers only pay a delivery charge to the natural gas utility company, while the fee for the fuel goes to the gas supplier, without any markup by Atmos Energy.

"Our customers want lower prices and Atmos Energy wants lower prices," Best said. "We hope that the new energy policy will lead to additional exploration, swifter permitting and more gas supply in future years."

"Natural gas utilities, like Atmos Energy, are on the side of their customers when it comes to lowering natural gas costs," Best said. "When President Bush signs this act into law, it will cap a five-year effort by our industry to seek comprehensive energy solutions that can lower costs for American consumers and businesses."

Best noted three key provisions in the legislation that will help natural gas utility customers.

--The energy policy provides accelerated depreciation to encourage more investment in natural gas pipelines to increase gas deliveries to customers.

--It contains numerous provisions to maintain domestic gas production and to bring new supplies to market although producers are still unable to tap the country's vast gas resources in many onshore and offshore areas.

--It increases the authorized funding level from $2 billion to $5.1 billion for the federal Low-Income Home Energy Assistance Program to help low-income families, the elderly and the disabled pay their monthly energy bills.

Atmos Energy ranks as the 34th largest utility in the U.S., based on 2004 revenues, according to Fortune Magazine's 2005 rankings.

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 pipeline and storage assets, including one of the largest intrastate natural gas pipelines in Texas. For more information, visit www.atmosenergy.com.