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A Winter Outlook from Leslie B. Enoch, II, CEO

Natural gas prices continue to remain stable due to increased supply, higher production and robust underground storage balances.

Last winter was significantly colder than normal and a return to more seasonable weather is expected. The good news is that the District’s rates are at their lowest level in years. A 5% reduction in rates coupled with more moderate weather provides a great opportunity for lower gas bills. Energy conservation also helps reduce gas bills. The District provides free safety inspections, pilot lighting and encourages customers to improve insulation, apply weather stripping, change filters and keep thermostats at the lowest possible comfort level.

The District is committed to providing quality service at competitive rates and is well-prepared to serve our customers with an abundant supply of clean burning and reliable natural gas. We appreciate our customers and look forward to serving your energy needs now and in the future.

Natural Gas Vehicles

Natural gas as a vehicle fuel has many of the same advantages that natural gas enjoys in other areas of energy use. Natural Gas is a DOMESTIC energy source with over 95% of the natural gas we use in the United States coming from North American production. ENVIRONMENTALLY, using natural gas produces less CO2 and pollutants than any other readily available form of energy (electricity for example is efficient at the plug, but produces extreme levels of pollution at the source where coal and other fuels are very inefficiently used to produce most of the electricity we consume in this country). EFFICIENCY, the process of converting natural gas to BTU’s of energy is very straightforward and efficient in a direct use application. These items produce a significant cost advantage for natural gas over other fuels as well. The current equivalent cost of natural gas for the energy in one gallon of gasoline is $1.25. For these reasons, natural gas has become a common source of vehicle fuel in some areas of the world. However, transportation fuels present unique problems that are not present in normal stationary fuel applications. In the United States, the convenience of large on board storage tanks (vehicle range) and the supply infrastructure already in place for gasoline and diesel fuel have greatly limited the use of natural gas in the vehicle fuel market.

The advantages of converting vehicles to natural gas use, or buying factory built dedicated natural gas vehicles are:

MTNG Acquires Town of Gainesboro Gas System

The Town of Gainesboro natural gas system was acquired by Middle Tennessee Natural Gas effective September 15, 2010. We welcome the current and future natural gas customers in the Town of Gainesboro and the surrounding Jackson County area to the MTNG family. Additionally, we welcome Mike Wasill as a new employee to the District. Mike has been the “Gas Man” in Gainesboro for a number of years, and he will continue that role as a service technician reporting to Adam Barnes, superintendent in the MTNG Sparta office.

Gainesboro is the District’s second acquisition in its 55 year history of service to the middle Tennessee area. The Monteagle natural gas system in the Grundy and Marion County area was acquired in 2008. All other areas of the District have been developed by the systematic expansion of natural gas mains as customer needs develop.

The new Gainesboro service area currently includes 360 active meters and 31 miles of steel piping with 433 services and 2 pipeline tap stations. Their current natural gas customers are in the Town of Gainesboro, along Highway 53 west of Gainesboro, and Highway 56 south of Gainesboro. This area will complement the area of southern Jackson County where MTNG already serves approximately 350 customers.

“We look forward to serving the Town of Gainesboro now and in the future,” stated MTNG CEO Les Enoch upon the acquisition. “We are confident the customers will find MTNG a reliable energy partner.”

A Customer Appreciation Day cookout will be held in Gainesboro on Friday, October 8th, 2010, from 11:00 a.m. until 1:00 p.m. This event will allow existing and prospective customers in the area to visit with District representatives and learn about our services and policies.