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Aquila Proposes Fixed Pricing Option for Nebraska Gas Customers

Aquila Inc., which serves 190,000 natural gas customers in Nebraska, has filed an application with the Nebraska Public Service Commission (PSC) requesting a pilot project for a new pricing option for customers in the state. If approved, customers would have the option to choose a fixed price or the current traditional method for their gas bills.

"We believe our customers want to make decisions about pricing options for natural gas," said Steve Pella, Nebraska vice president of operations at Aquila. "Our Lincoln [NE] service area has a similar fixed-price option program for customers, and this application responds to customer requests to take the Lincoln program statewide.''

The traditional method of billing gas results in month-to-month price fluctuations in the billing rate, depending upon the cost to secure the necessary natural gas supply. Aquila will not profit from the fixed-price program, but PSC approval is required prior to the company implementing any changes in pricing options.

The proposed program will be open to residential customers in all 110 communities served by Aquila and replaces the current Lincoln program. If approved as proposed, the program would be in effect for one year, including the 2006-2007 heating season.

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