Atmos Energy 1999 Annual Report Download - page 7

Atmos
Energy
Corporation
3
We had many accomplishments in 1999 that we believe will help us achieve our vision for
growth and prepare us for future success.
Ensuring adequate returns through rate filings. We continually review our rates of
return to make sure that we are earning our authorized rate of return in every jurisdiction.
This year’s review determined that we were under-earning in our Western Kentucky and
Energas divisions. In 1999, Atmos filed for additional revenues totaling $27.3 million in
Kentucky, West Texas, and Amarillo. We have proposed alternative rate designs in the filings
to mitigate the effects of weather which will help stabilize both customer bills and the
Company’s earnings. We expect to have new rates in effect in Kentucky, West Texas and
Amarillo during fiscal year 2000. In October 1999, Atmos received a final order from the
Louisiana Public Service Commission related to a rate proceeding involving its Trans Louisiana
Gas Company division. The favorable decision allowed Trans La to increase its monthly customer
charge on November 1, 1999, from $6 to $9, which will help minimize the effects of warm
weather on earnings. Trans La also received a three-year extension on a rate stabilization
clause authorizing it to earn up to 11.5 percent before sharing benefits with customers. These
combined rate proceedings will affect more than 50 percent of the Company’s customer base.
Investing in technology to improve efficiency and service. Atmos has been among
the most efficient providers of natural gas in the industry, and we are using technology to
enhance our efficiency. We are just as committed to providing superior customer satisfaction.
Our goal is to balance the efficiencies gained through technology and our customers’ desire
for quality service with a human touch. We’ve made great strides in enhancing our efficiency
with our Customer Support Center in Amarillo, Texas, that provides customer call support
24 hours a day, seven days a week. Having just completed the first full year of operation of
the center, we believe our concept of serving all our customers from a central location is
sound, although we are fine-tuning our execution. As with the implementation of any new
technology, the transition has not always been as smooth as we would have liked. We made
the investments in the center and an integrated state-of-the-art customer information system
because our goal is to improve both customer service and efficiency.
We’ve also re-engineered our human resources and financial systems with the installation of
Oracle-based software. The new customer information and Oracle software systems not only
improved our productivity, but also addressed many of the Company’s Year 2000 issues. Our
Year 2000 planning began in 1996 to manage and minimize risks associated with Year 2000
issues, and we announced that the Company was Year 2000 ready on September 30, 1999.
Building customer loyalty. We believe the best way to retain existing customers and
attract new ones is by providing unparalleled service at reasonable rates, and making it easy
for customers to do business with us. Building customer loyalty grows ever more important
as we move toward more customer choice. A utility customer satisfaction survey conducted
in 1999 showed that our customers are considerably more satisfied and more loyal than the
industry average. As exceptional as the survey results are, we continually seek ways to
improve service and strive to exceed the expectations of our customers.
Operating and
Maintenance Expense
Per Customer
$ 50
$100
$150
$200
95 96 97 98 99
$ 0