ATO Atmos Energy Corp

Natural gas will cost less to use in 2007 than other major home energy sources, according to the Department of Energy�s (DOE) Office of Energy Efficiency and Renewable Energy. Atmos Energy and the American Gas Association praised the finding as natural gas solidified its position as the best home energy value. �This independent, government study verifies what home builders and home buyers have said for years; they want natural gas,� said Robert W. Best, chairman, president and chief executive officer of Atmos Energy. �This study proves natural gas is better for the consumer�s energy budget and it�s better for the environment.� According to DOE, one million British thermal units (Btus) of natural gas will cost an estimated $12.18 this year � while the same amount of electricity will cost families more than twice as much ($31.21) on average. Natural gas will also cost less than heating oil ($16.01), kerosene ($19.48) and propane ($20.47). �These cost savings can add up quickly, especially for home-heating and water-heating, said Tom Moskitis, AGA managing director of external affairs. �For water-heating, an average household using a conventional storage type water heater would save around $220 per year in energy costs by using a natural gas water heater instead of a similar electric unit. That means the natural gas water heater can pay for itself after just a few years � and save a consumer $2,000 in energy costs over the nine-year life of the appliance.� The least expensive way to heat a home in 2007 is with a high-efficiency (94 percent) natural gas furnace, according to an AGA analysis of DOE�s cost projections. This option will cost consumers an estimated $801 in 2007, compared with $1,930 for the most expensive home-heating option � an electric resistance system (such as electric warm air furnace heating), AGA said. 2007 Average Home-Heating Costs (Calculated by AGA, based on DOE energy-cost estimates) HOME-HEATING EQUIPMENT 2007 AVERAGE ANNUAL OPERATING COST 1 94%-efficient natural gas furnace $ 801� 80% -efficient natural gas furnace $ 924� 84%-efficient oil furnace $ 946� 94%-efficient propane furnace $1,184� 80%-efficient propane furnace $1,528� Electric 7.7 HSPF heat pump $ 814� Electric resistance furnace $1,930� 2007 Average Water-Heating Costs and Lifetime Energy Savings (Calculated by AGA, based on DOE energy-cost estimates) WATER-HEATERS AVERAGE ANNUAL OPERATING COST (2005) 1 Natural gas-typical $294� Electric -typical $517� Consumer note: Over the average 9-year life of a water heater, you'd spend $2,000 more to use an electric water heater than a � natural gas water heater. The DOE forecast of projected costs of natural gas, electric, propane and kerosene energy use was published in the March 21, 2007, Federal Register. About the American Gas Association The American Gas Association, founded in 1918, represents 200 local energy utility companies that deliver natural gas to more than 64 million homes, businesses and industries throughout the United States. A total of 69 million residential, commercial and industrial customers receive natural gas in the US, and AGA's members deliver 92 percent of all natural gas provided by the nation's natural gas utilities. Natural gas meets almost one-fourth of the United States' energy needs. About Atmos Energy 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 pipeline systems in Texas. Atmos Energy is a FORTUNE 500 company. For more information, visit www.atmosenergy.com. 1 These estimates by the American Gas Association are based on DOE�s 2007 representative annual costs of energy, using equipment listed in the most recent Gas Appliance Manufacturers Association and Air Conditioning and Refrigeration Institute equipment directories. The estimate is based on a 2,072 square-foot home located in a moderately cold temperature region, such as St. Louis, with updated energy efficiency features that reflect the 2006 �International Energy Conservation Code.� Homes with less insulation, more floor space and located in a colder climate can expect to have higher costs for appliances using all types of energy.