SEATTLE, June 28 /PRNewswire/ -- Cascade Natural Gas Corporation today
announced that it has filed an application for a Purchased Gas Cost Adjustment
(PGA) with the Washington Utilities and Transportation Commission. This
application reflects natural gas price increases paid to natural gas producers
by Cascade on behalf of its customers in Washington. In a separate application
that also affects customer rates, Cascade has filed to begin passing back to
customers credits that have been deferred since August 1, 1996. The resulting
decrease will help offset the impact of the increase in the wholesale cost of
gas. If these applications are approved as filed, the average Cascade
residential customer in Washington, who uses natural gas for space heating and
water heating, will experience an average monthly bill increase of
$5.62 (12.9%) beginning August 1, 2000.
    The requested adjustment in gas cost reflects only increases in the market
price of natural gas purchased by Cascade. The Company's earnings will not
benefit from the proposed price changes. Cascade is not requesting any rate
changes related to the costs of its own service, operation, maintenance, or
capital costs. The Company has not filed for such a general rate increase
since 1994.
    This increase in natural gas prices is part of a market cycle influenced
by supply and demand factors. A recent federal Energy Information
Administration (EIA) study points to a growing demand for natural gas to
produce power. Environmental laws have increased the cost of operating coal
and oil power plants, and nuclear plants are out of favor. As a result,
natural gas -- the cleanest of the available fuels -- has become the energy of
choice for homeowners, businesses, industry and new electric power generation.
    "Higher prices are already encouraging increased development of known
natural gas reserves and exploration for new resources. As available supplies
increase, we should experience relief from the current upward pressure on
prices," said Jon Stoltz, Senior VP Planning, Regulatory and Consumer Affairs.
"In the meantime, even at these higher prices most customers of Cascade will
still find natural gas very economical and efficient when compared to other
heating fuels. In most of Cascade's service areas, customers will still enjoy
natural gas prices that are typically between 20% and up to 50% less than
electricity."
    Copies of Cascade's applications are available for public review at the
offices of both the Washington Utilities & Transportation Commission and at
any of the Company's local offices.
    Cascade Natural Gas Corporation serves more than 145,000 residential,
commercial and industrial customers in Washington and more than
41,000 customers in Oregon. Cascade provides service to 75 communities in
Washington in Adams, Benton, Chelan, Cowlitz, Douglas, Franklin, Grant,
Grays Harbor, Island, Kitsap, Mason, Skagit, Snohomish, Walla Walla, Whatcom
and Yakima Counties. The Company's stock is listed on the New York Stock
Exchange with the symbol: CGC.

    CONTACT:  Frank Mansell, 206-381-6838, or Jon Stoltz, 206-381-6823, both
for Cascade Natural Gas Corporation.

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