NBU NEWS RELEASE

FOR IMMEDIATE RELEASE: June 24, 2005
Contact: Gretchen Reuwer, NBU Communications Manager, (830) 629-8486

NBU customers gain relief on summer rates

NEW BRAUNFELS—Summer heat has arrived and air conditioners have gone into double time to keep homes and businesses cool. Higher usage, coupled with higher summer rates for electricity, can have a strong effect on the total electric bill for NBU customers. This summer, however, customers will be seeing some relief from the seasonal rate increase.

Seasonal rates are utilized by NBU to recognize the difference in the cost of power that NBU’s wholesale provider charges for summer and non-summer usage. The four summer months, June through September, are priced higher than the non-summer months of October through May. This is done so the higher cost of usage is recovered from customers actually using the energy during this time period instead of spreading the cost over all customers throughout the year.

“In response to the energy market and the cost of purchased power, NBU has been required to raise customer electric rates as much as $12 per 1000 kilowatt-hour (kWh) in the summer months due to the cost of power rising with the increase in electric demand,” explains NBU CEO Paula DiFonzo. “Fortunately, these seasonal electric rates will have less of an impact this summer due in part to various rebates that NBU has received from its electricity provider. The NBU Board of Trustees has voted to pass on the rebates to NBU customers by reducing the summer increase by $5.84 per 1,000 kWh.”

The following chart shows that NBU’s rates compare favorably with other electric utilities in the State of Texas.

Comparison of Summer Electric Rates Based on June 2005 Reports – 1000 kWh Residential Usage Electric Cooperatives PEC $99.20 GVEC (All-Electric) $85.07 GVEC (Single Phase) $89.00 Municipals Austin Energy $90.81 CPS Energy $82.23 San Marcos $86.15 NBU $81.75 Investor Owned Areas Open to Competition   Price to Beat Competitive Retail Electric Provider TXU $124.03 $98 (Gexa Energy) Reliant $128.21 $105 (Gexa Energy)

NBU has several programs available to assist customers in their efforts to reduce their electric usage. Helpful Energy Saver brochures, printed in both English and Spanish, are available at the NBU Main Office. These offer numerous tips for reducing energy usage in the home. NBU also offers energy audits residential and business customers at no cost. These audits can help pinpoint areas where customers can become more efficient in their electric usage and ultimately lower their costs. An energy audit can be scheduled by calling (830) 629-8440.

Another means of easing the impact of fluctuating utility bills is by enrolling in the NBU Budget Billing Program. With this program, payments are spread into 11 equal monthly payments with the twelfth month serving as the reconciling month. Customers who would like to participate will also be signed up for the NBU AutoDraft Program, which will simplify their entire bill paying process. With AutoDraft, a customer still receives a statement indicating the amount that will be automatically deducted from their bank account on the date the NBU bill is due. NBU customer service representatives are ready to explain the details of the program to interested customers. They can be reached by calling the Main Office at (830) 629-8400.