Atmos Energy said that a steering committee representing 66 cities in West Texas has recommended that the cities approve an overall increase of $3.2 million in the annual revenues of Atmos Energy’s natural gas utility operations. Atmos Energy filed for its last rate increase in 1999 under its former operating name of Energas Co. The cities’ steering committee also approved a Weather Normalization Adjustment Rider for residential, commercial, public-authority and state-institution customers. This rider will provide for restructured natural gas rates to reduce variability in gas bills during the heating season and should help to stabilize customers’ rates and the company’s revenues. The average increase for all classes of customers in the 66 cities is 2.93%. The monthly increase for an average residential customer will be $1.23. The rate changes will take effect in May. Atmos serves 151,300 natural gas utility customers in the 66 West Texas cities subject to the rate change and 313,300 total natural gas utility customers in Texas.

Williams signed a definitive agreement to sell power contracts and related assets for $23 million to Houston-based Saracen Energy Partners LP. The deal includes transportation contracts, associated forward purchase and sales contracts and inventory. The agreement also assigns to Saracen and relieves Williams of future capacity payments totaling $16 million. The sale is expected to close on July 1. Williams has generated in excess of $600 million from the sale, termination or liquidation of contracts and assets from its power segment since June 2002. Houston-based Saracen Energy Partners was founded by former Vitol Group Vice-Chairman Neil Kelley and former Vitol Gas & Electric President Michael Kutsch to make targeted investments in the energy sector.

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