Atmos Energy Corporation Calls for Conservation to Ease Winter Expenses.

DALLAS -- Atmos Energy Corporation (NYSE:ATO) today urged customers in its 12-state service territory to take action now to conserve energy and reduce the impact of rising natural gas prices predicted this winter.

"We care about our customers, and we want what they want -- ample natural gas supplies and reasonable prices," said Earl Fischer, Atmos Energy's senior vice president of utility operations. "Atmos Energy will have enough natural gas to keep our customers warm this winter, but market prices nationwide are significantly higher than last year."

The federal Energy Information Administration's (EIA) latest forecast, the Short-Term Energy Outlook, echoed the advisories issued earlier by Atmos Energy, predicting higher winter heating expenses. In its forecast, the EIA said: "This winter, residential space-heating expenditures are projected to increase for all fuel types compared to year-ago levels. On average, households heating primarily with natural gas are expected to spend about $350 (48 percent) more this winter in fuel expenditures."

Atmos Energy customers may experience winter heating expenses that are more or less than the government prediction, depending on weather and energy use.

"Atmos Energy is doing everything possible to mitigate higher prices; now customers must take action," said Fischer.

Conservation Tips

Customers are urged to use this time to add weather stripping, insulation and caulking to eliminate leaks and conserve energy use. Other actions customers can take include:

--Lower the thermostat to reduce the amount of natural gas used. Set thermostats between 65 and 70 degrees during the winter and at 58 degrees when away from the house for more than a few hours. While sleeping, add an extra blanket for warmth.

--Install an automatic setback or programmable thermostat to adjust the temperature automatically without sacrificing comfort.

--Clean cobwebs, dust or other debris from your space heater before using for the first time in cold weather. Remove dust and lint from furnace vents, registers and baseboard heaters.

--Make sure your duct work is properly insulated and sealed. Unsealed ducts in attics and crawl spaces lose air. Non-insulated ducts lose heat, wasting energy and money.

--Keep blinds or draperies opened on sunny days to let the sun's warmth in. This is especially important on any windows or glass doors receiving direct sunlight.

Customers can obtain a comprehensive list of energy conservation tips at Atmos Energy's Web site: https://www.atmosenergy.com/cs/faq/conservation.html.

Budget Billing

Customers may also choose to sign up for budget billing, which evens out monthly natural gas bills on a year round basis. The amount of a customer's monthly payment is based on a rolling 12-month average of their bill amount. Customers can sign up for budget billing at www.atmosenergy.com or by calling the Atmos Energy number on their monthly statement.

No Profit on Natural Gas Prices

"Customers pay the same price that Atmos Energy has already paid -- and not a penny more for natural gas," added Fischer. "We buy gas on behalf of customers, and we recover the actual cost of gas from our customers with no mark up. 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 local governments."

Energy Assistance

Atmos Energy also supports the Low Income Home Energy Assistance Program (LIHEAP), which is a federal block grant program that provides money to help low and fixed-income individuals heat and cool their homes.

Earlier this year Congress appropriated $1.9 billion for LIHEAP. However, that could be less than half of what is needed, according to the American Gas Association (AGA). Most LIHEAP beneficiaries do not receive welfare or other forms of public assistance. Instead, they are working, retired or disabled people with below-poverty incomes who receive help to pay energy costs. Atmos Energy and the AGA support an annual appropriation of at least $5.1 billion for LIHEAP in FY 2006.

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.