Contacts:

Elizabeth Castro (Media)

(312) 240-4567

 

Douglas Ruschau (Investor Relations)

(312) 240-3818

 

 

 

 

 

 

 

 

 

 

         

 

 

For Immediate Release

December 1, 2006

 

Natural Gas Prices Rise as Winter Approaches; Peoples Energy Offers Resources for Bill Management and Financial Assistance to Area Customers

 

 

(CHICAGO) – Peoples Energy today said that customers can expect to pay more for gas in December than the prior month, although much less than December last year.

 

The December gas charge for Peoples Gas customers is 88.21 cents per therm. Although this is higher than the November 2006 gas charge, it is still 21% lower than the December 2005 gas charge of about $1.12 per therm. The December gas charge for North Shore Gas customers is 87.84 cents per therm which is about 23% lower than the December 2005 gas charge of $1.14 per therm.  The unseasonably mild temperatures experienced in the area during November are unlikely to continue, which means customers will likely be using more natural gas to heat their homes, resulting in higher bills.

 

“We are relieved to see that natural gas prices nationally are lower this year than they were last year,  but we are strongly encourage customers to take advantage of financial and conversation tools available to manage their energy bills,” said Rodrigo A. Sierra, Vice President of Communications and Government Relations.

 

The price of natural gas and related taxes make up about 80% of a customer’s total bill. The utilities purchase supplies from producers and deliver the natural gas to customers without a mark up. Peoples’ utilities have not raised their rates to delivery natural gas to customers for 11 years.  The delivery rate makes up only about 20% of a customer’s bill.

 

To help customers manage their energy usage and bills, Peoples Energy recently launched a new customer-focused Web site, www.keepingUwarm.com. The site provides customers with concise, easy-to-access information about managing their bills this winter. The company is taking a unique approach to communicating with customers by having them answer questions like: What kind of natural gas user am I? How can I save money? How can I manage my bills better? From there, the site provides resources and information specific to customers’ needs.

 

The company reminded customers facing financial difficulty of the Low Income Home Energy Assistance Program (LIHEAP) and the Peoples Energy Share the Warmth program, which opened for the season in November. To apply for LIHEAP, Peoples Gas customers should call CEDA at 1-312-456-4100, and North Shore Gas customers call the LCCA at 1-847-249-4330.

 

The Peoples Energy’s Share the Warmth fund, which is administered by the Salvation Army, is another effective program that provides one-time matching grants of up to $200 for eligible households. Customers up to 200% of the poverty level are eligible and are encouraged to apply by calling the Salvation Army at 1-773-725-1100.

 

To provide further outreach, on two Saturdays this fall, Peoples Energy’s Team H.E.A.T. (Home Energy Assistance Together) volunteers were joined by volunteers from H.O.M.E. (Housing Opportunity and Maintenance for the Elderly) and the American Gas Association (AGA) to weatherize low- and fixed- income residents’ homes and provide useful information on energy conservation.

 

Last month, the company participated in six regional heating fairs which garnered high attendance. Five more fairs will be held in December at the dates and locations below. Peoples Energy participates in the fairs along with elected officials, CEDA, ComEd and other community groups to bring financial assistance and conservation education directly into communities. Attendees will receive a free weatherization kit.

 

¨                Dec. 2 – Marshall High School, 3250 W. Adams

¨                Dec. 6 – Sandoval Elementary School, 5534 S. St. Louis

¨                Dec. 9 –  Agricultural School, 3757 W. 111th St.

¨                Dec. 13 – Home of Life Missionary Church, 4650 W. Madison

¨                Dec. 16 – Kennedy-King College, 6800 S. Wentworth

 

Peoples Energy, a member of the S&P 500, is a diversified energy company comprised of three primary business segments: Gas Delivery, Oil and Gas Production and Energy Marketing. The Gas Delivery business serves about one million retail customers in Chicago and northeastern Illinois. Visit the Peoples Energy web site at PeoplesEnergy.com.

 

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