Atmos Energy 2014 Annual Report Download - page 17

By 2015, low
natural gas
prices and an
abundance
of domestic
gas supply
should raise
annual U.S.
disposable
household
income by
$2,000.
Taking into account our significant future investments to modernize and
expand our infrastructure, we forecast that an average residential
customer’s monthly gas bill should remain below $60 through fiscal 2018.
LOW CONSUMER GAS BILLS
North America’s rapidly growing abundance of
natural gas produced from shale formations is keep-
ing gas supplies high and prices low.
e respected Potential Gas Committee’s latest
biennial assessment of the United States’ natural
gas resources found a total available future supply
of 2,688 Tcf—more than a 100-year supply. It is
the largest gas resource evaluation recorded in the
committee’s 48-year history.
Natural gas spot prices since October 2008 have
remained in the range of $3 to $5 per 1,000 cubic
feet (Mcf). By contrast, from 2003 to 2008, weekly
spot prices had uctuated from a low of about $4.50
to as much as $14.50 per Mcf. e U.S. Department
of Energy forecasts spot prices will stay between $5
and $6 per Mcf through 2023.
As a result, the accelerated recovery of large
pipeline infrastructure investments
is having little eect on America’s
residential gas utility bills, in gener-
al, and on those of Atmos Energy’s
customers, in particular.
Since 2007, our average residen-
tial customer’s monthly bill, on an
annualized basis, has stayed below
$60 and has been among the lowest
household costs. Our average resi-
dential bill in scal 2014 was $57.
Taking into account our signi-
cant future investments to modern-
ize and expand our infrastructure,
we forecast that an average resi-
dential customer’s monthly gas bill
with normal consumption should
remain below $60 through scal
2018. Our customers are essentially
receiving signicantly increased
value at no increase in cost.
A CONSENSUS OF SUPPORT
Our nation has many reasons to support pipeline
infrastructure investments and many groups in
favor of these programs: natural gas utilities, safety
regulators, gas producers, royalty owners, pipeline
operators, environmental groups, labor unions,
major manufacturers, elected ocials, civic leaders
and consumers.
ese groups realize that pipeline improvement
programs benet the American people in so many
ways: public safety, energy reliability, abundant fuel
supplies, environmental improvements, consumer
savings, new jobs and economic development.
For Atmos Energy, our reasons to modernize
and expand our core infrastructure encompass all of
these. Our obligation to serve—safely, reliably and
eciently—our 1,400 communities and 3 million
customers underlies why we are investing for safety.
A precision thermal fuser joins sections of high-density polyethylene
pipe being installed along an Atmos Energy right of way. Advances
in pipeline technology make new pipeline infrastructure not
only much safer, but also more economical. Fused pipe joints are
as strong as the pipe itself and should last for decades to prevent
leaks and lower maintenance costs.
15
ATMOS ENERGY’S AVERAGE RESIDENTIAL CUSTOMER BILL REMAINS
AFFORDABLE EVEN WITH PIPELINE MODERNIZATION INVESTMENTS
ATMOS ENERGY: INVESTING FOR SAFETY
$60
$40
$20
$0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Projected for fiscal years 2015 through 2018, assuming normal weather