Atmos Energy 2007 Annual Report Download - page 17

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Please find page 17 of the 2007 Atmos Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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WE DON’T MARK UP THE PRICE OF NATURAL GAS
When natural gas prices are high, we feel it, too. We buy
more than 400 billion cubic feet a year of natural gas for our
regulated distribution operations. We charge customers
the same amount we pay without any markup.
About two-thirds of our consolidated earnings come from
delivering natural gas, not from selling it. Therefore, controlling
the volatility of natural gas prices is vitally important to us
and to our customers.
Our natural gas distribution divisions are seeking an
improved rate design known as “margin decoupling.” Under
this rate structure, we make no profit from the volumes of
natural gas that our customers use. However, we are allowed
to charge a higher basic service fee that helps insulate our
revenues from changes in customers’ use caused by weather,
conservation and more-efficient appliances. In return, we’re
able to provide more incentives for our customers to cut
their natural gas consumption without hurting our business.
Atmos Energy has supported programs to help our customers
in Louisiana rebuild their homes and lives after the disastrous
Hurricanes Katrina and Rita in 2005.