October 26, 2006 FOR
IMMEDIATE RELEASE

For additional information, contact Gas and Energy Coordinator Eric
Schlacks at (218) 730-4060; or Jeff Papas in the City's Communications
Office at (218) 730-5211.

Outlook mixed for gas prices this winter

Consumers have probably already heard the good news that the price of
natural gas is lower than last year. A mild hurricane season, slumping
oil prices, and record levels of natural gas storage have pushed prices
down compared to the same period last year.

The Department of Energy forecasts lower natural gas prices this winter.
However, that doesn't necessarily mean consumers will pay lower bills.

If this winter is warmer than normal, like last winter, consumers could
save on heating costs compared to last winter. But if winter
temperatures are normal, ComfortSystems projects that customers will pay
about the same amount they paid last winter to heat their homes with
natural gas. Last winter a typical Duluth customer paid about $1,250
for natural gas service.

"Last year, winter temperatures were about eleven percent above normal
and that meant a break for consumers," said Eric Schlacks, Gas and
Energy Coordinator for the Duluth Public Works and Utilities Department.
"We hope it continues but we need to warn our customers that we're still
at the mercy of a Minnesota winter. The best ways to keep your energy
bills down are to use energy wisely and take measures to conserve."