NBU NEWS RELEASE

FOR IMMEDIATE RELEASE: January 11, 2008
Contact: Gretchen Reuwer, NBU Communications Manager, (830) 629-8486

NBU to be able to offset LCRA rate increase

NEW BRAUNFELS—NBU’s wholesale electric provider, the Lower Colorado River Authority (LCRA), has announced that it will increase its rates in 2008, citing the higher cost of coal transportation through the rail systems and increased cost of fuel used to produce electricity due to a tightening supply in the energy market as reasons for the rate increase. Customers, however, will not see an immediate impact on their bills as NBU will be able to offset this increase by passing on a refund from its wholesale provider.

LCRA over-recovered on fuel in previous periods and NBU will flow it back to customers to help offset the increase. How quickly the rebate is depleted will depend on the volatility of natural gas market and whether or not LCRA raises or lowers its wholesale rates in the interim. NBU will continue to monitor the natural gas market and LCRA’s actions and keep customers informed of any impact that may occur in the future to their electric bills.

Conservation plays an important role in helping to lower energy bills year round. NBU offers free energy audits to help customers identify areas in their homes and businesses where greater energy efficiency can be achieved. Customers are also encouraged to take advantage of the NBU Budget Billing Program and obtain free Energy Saver booklets at the Main Office. For more information about any of these programs and services, please call the NBU Customer Service Division at (830) 629-8400.