NBU NEWS RELEASE

FOR IMMEDIATE RELEASE: May 3, 2006
Contact: Gretchen Reuwer, NBU Communications Manager, (830) 629-8486

NBU electric customers to see some decrease in fuel cost

NEW BRAUNFELS—NBU’s wholesale electric provider, the LCRA, increased its rate six months ago by 35% in order to recover increasing costs of fuel used to produce electricity. The driving force behind this increase was the high price of natural gas used to produce electricity. NBU increased its Power Cost Recovery Factor to begin recovering that increase. Gas prices have decreased some, and NBU recently received notice from LCRA that they were partially decreasing the rate increase imposed in October 2005.

“At this point, NBU has not been fully recovering all of the power costs associated with the initial increase,” explains NBU CEO Paula DiFonzo. “The Board voted to reduce the current PCRF by $0.003 in June which partially matches the wholesale reduction.”

“The reduction in the PCRF allows NBU to stabilize power costs at current levels in anticipation of high summer usage. We expect that LCRA will follow through with additional decreases in the event that natural gas prices continue to decline. If this occurs, NBU will be positioned to pass through any reduction to our customers,” DiFonzo adds.

NBU continues to emphasize the importance of conservation in helping to lower energy bills year round and offset these increases. Free energy audits are available 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.