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Peoples Natural Gas Report1015 CedarCross Road Dubuque, IA52003 800-303-0752 Fax:319-583-0850 December 13, 2000 PEOPLES NATURAL GAS ENERGY~NE D~ear Mayor and Council Members: As part of our effort to keep you informed regarding issues that affect the energy service we deliver in your community, I am wrifmg to provide you with information about the current high natural gas prices. The prices which Peoples Natural Gas paid for its wholesale gas supplies last month were double what they were at the same time last year, and projections indicate that they will probably remain high this winter. Our company does not benefit from the higher prices as we pass the wholesale COst 0fgas through to customers without a markup. Like you, we are concerned about these high gas prices in the wholesale markets, and are working to secure gas supplies at the best possible price. You can be assured that we will provide our residential customers reliable gas supplies under all foreseeable winter weather conditions. We are taking steps to keep customers informed about prices and to help them prepare for potentially higher winter bills. UtiliCorp has pledged $140,000 to match contributions to low- inCOme energy assistance and support employee volunteer weatherization projects across our system. We are also,proposing regulatory and legislative actions to assist consumers. Enclosed is information to assist you in responding to inquiries that you may receive from citizens in your community. Ir'you'd like additional brochures for other city officials, or have questions about natural gas prices or any other aspect of our operations, please call me anytime, at 319-589-0468 or your local Peoples' customer service director/supervisor listed below. We are dedicated to delivering the best energy service and appreciate the opportunity to serve your COmrnmtity. Sincerely, Marvin Oppedal Director, Community Relations CC: Bonnie Gilbe~ Decorah, IA Ken Hansen, Dubuque, IA Bob Ralph, Newton, IA ~Bill Hanson, Webster City, IA 319-382-0953 ext. 13 319-589-0467 641-792-4473 515-832-1975 A Division of UtiliCorp United