Western Kentucky Gas Denies Over-Earning Charges Made by Attorney General
Atmos files answer to AG complaint that it is over-earning and should lower rates

FRANKFORT, KY (February 25, 2005) – Attorney General Stumbo today responded to Western Kentucky Gas’ (also known as Atmos Energy Company) efforts to have the Complaint against it dismissed. Stumbo has asked the Public Service Commission (PSC) to review and reduce Atmos’s rates charged to Kentucky ratepayers for natural gas. Atmos claims that the case should be dismissed without a hearing. Stumbo’s Response points out that the Complaint should not be dismissed and that the Public Service Commission should examine Atmos’s rates to determine whether they are fair, just and reasonable.

On February 1, 2005, Attorney General Greg Stumbo filed the complaint at the PSC, requesting the Commission open a case on Atmos. Stumbo’s complaint stated that Atmos is over-earning and should be required to lower its rates by as much as $7.4 million per year. The company provides natural gas to 38 counties in Western Kentucky and serves more than 180,000 customers. The company has already settled a case with similar claims in Colorado. Meanwhile, Tennessee is also looking into possible over-earning by Atmos.

In filing the challenge, Attorney General Stumbo said, “My Office can demonstrate that Atmos is over-earning by millions of dollars every year. It is my hope that the PSC will allow the opportunity for a hearing so that the people of Kentucky are not over-charged for natural gas.”