Load Maintenance and Energy Efficiency Measures: How the Two Can Coexist

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Load Maintenance and Energy Efficiency
MeasuresHow the Two Can Co-exist

• April 19, 2006
• Gary L. Smith

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Introduction to Atmos Energy
States of operation
Headquarter cities
Utility service area
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Chief Financial Objective

• Achieve stable, reliable earnings growth
• . . . this is beneficial to shareholders,
  customers, employees.

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Fundamentals of Traditional Rate Design
Utilitys total authorized revenue requirement
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Residential Gross Margins
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Residential Margin per Mcf
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Declining Usage Trends
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Declining Usage Trends
Source American Gas Association report
Patterns in Residential Natural Gas Consumption
since 1980, February 2000
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Changes in Residential Bills
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Declining Usage Trends
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Gas Cost Warnings Encouragement to Conserve
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Conclusions

• Must keep interests aligned with customers
• Affordability
• Low-income concerns
• Competition
• Convenient payment options
• AVOID purchase and sale of high-cost gas supply
• Seeking creative rate design to de-couple
  connection between earnings and sustained
  customer volumes
• Continued importance of marketing
• AtmosCares low-income weatherization program

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Load Maintenance and Energy Efficiency
MeasuresHow the Two Can Co-exist

• April 19, 2006
• Gary L. Smith