November 4, 2005 - El Paso, Texas - Texas Gas Service (TGS) customers in El Paso will see a sharp increase in their cost of gas on their November bills. The cost of gas for November will be $1.0888 per Ccf (hundred cubic feet of gas), compared to last month's $.8719 per Ccf, a one-month increase of 24%. The price for natural gas on the New York Mercantile Exchange recently reached record levels based upon storage amounts, supply disruptions due to Hurricane Katrina and Rita and concerns over rising demand during winter months. While the price customers in El Paso will pay in November are at record levels, the full effect of these inflated natural gas prices won't be felt until cold weather reaches El Paso.
Richard Fleager, Vice President for Texas Gas Service's Western Region, is concerned about customers' bills this winter. "Most customers will not feel the full impact of rising wholesale natural gas prices until cold weather arrives and it would not be unrealistic to see natural gas bills exceeding $100. This is why it is imperative that our customers join our levelized payment plan today. Our ABC Plan is the first step to managing volatile gas costs this winter."
Texas Gas Service does not profit from the higher commodity costs. TGS charges its customers the same price it pays for natural gas, making the cost of gas a true "pass through" cost. TGS changes the cost of gas factor each month, to reflect current market conditions.
TGS created the ABC Plan to help customers budget for their natural gas payments throughout the year. The initial ABC payment is calculated by averaging the customer's gas bill over the last twelve months. Then twice a year, TGS compares the payment to the actual usage, and makes an adjustment upward or downward. TGS strongly recommends that its customers join the Average Bill Calculation (ABC) plan because the Plan makes the billing predictable and easy on the customers' budget. Customers should call (915) 562-8411
Texas Gas Service provides natural gas service to approximately 565,000 customers in the state of Texas, including customers in Austin, El Paso, the Gulf Coast and the Rio Grande Valley. Texas Gas Service is a division of Tulsa-based ONEOK, Inc., (NYSE: OKE), a diversified energy company and a leader in the gathering, processing, storage and transportation of natural gas in the mid-continent region of the U.S. ONEOK owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the NGL supply in the mid-continent with two key market centers. Its energy services operation focuses primarily on marketing natural gas and related services throughout the U.S. ONEOK is the majority general partner of Northern Border Partners L.P. (NYSE: NBP), one of the largest publicly-traded limited partnerships. ONEOK is a Fortune 500 company.
For information about ONEOK, Inc. visit the Web site: www.oneok.com.
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