Atmos Energy 1997 Annual Report Download - page 10

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Wholesale and large industrial and commercial customers already have a choice of energy suppliers in the areas we serve.
They can buy from anyone, and we deliver that gas for them. We believe that eventually we will see some form of unbundling
of services for residential customers so that they, like our wholesale and large commercial and industrial customers, will have
choices. Customers, regulators, legislatures and business leaders in many of the states where Atmos serves are currently
discussing unbundling, but have not yet established how that unbundling will take shape. We are participating in these
discussions, not as an advocate or as an opponent, but as a company interested in providing the best service to our
customers and the best return to our shareholders. We believe that residential unbundling will occur, and when it
occurs, we will be ready to serve our customers just as we do today.
We do not fear the changing environment. In fact, we see opportunity. We have already begun customer service enhancements
for residential customers. We have been competing with other gas suppliers for large industrial customers for a decade —
over 50 percent of our Kentucky throughput is transported for industrial customers. We also compete against some very
efficient electric utilities as well as other energy sources for residential and commercial customers. We’re putting our
experience to work in preparing for further competition for customers. Atmos is physically linked to about 1 million cus-
tomers through our five operating companies, and each company has a strong local brand identity. We believe our low rates,
service geared for customer convenience, and a strong local presence will be difficult for our competitors to match.
Focused on the Future
This was a monumental year for Atmos. We expect our results in 1998 and beyond to reflect the investments made this
year. We are confident that we have the right organization and the right people to capitalize on opportunities ahead. As
we end this monumental year and look forward, our initiatives are directed in four areas: running our utility operations
exceptionally well; increasing the scope, scale and market share of our non-utility operations (gas marketing and propane);
developing plans to participate in retail energy services behind the meter; and growing through acquisitions.
We end 1997 and begin 1998 well-positioned to build in the future on our successful past. This is the result of the efforts of many
people to whom I would like to express our appreciation. To our employees for their dedication, enthusiasm, tireless efforts and
commitment to excellence; to our Board of Directors for their sound counsel, encouragement and support; and to you our share-
holders for your confidence in our management, our company and our future.
Robert W. Best
Chairman, President and Chief Executive Officer
November 12, 1997
LEFT TO RIGHT
Gene C. Koonce
Vice Chairman of the Board
Robert W. Best
Chairman of the Board, President
and Chief Executive Officer
Charles K. Vaughan
Board member and former
Chairman of the Board
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