SEATTLE, Aug. 1 /PRNewswire/ -- The following release is being issued by
Cascade Natural Gas:

    A Monday Associated Press story erroneously reported that Cascade Natural
Gas (NYSE: CGC) has a General Rate increase pending with the Washington
Utilities and Transportation Commission (WUTC) and that customers' bills could
increase by as much as 40%. The Company has not filed a General Rate increase,
nor is it planning to file for a General Rate increase.
    Yesterday, Cascade Natural Gas Corporation did receive WUTC approval for
two separate filings. The first was a Purchased Gas Cost Adjustment (PGA) for
the rates it charges its Washington residential, commercial, and industrial
customers. The second filing was for an amortization of a refund. As a result
of these two filings, the net rate increase Cascade's customers will see is
12.9% for the average residential customer, 14.7% for the average commercial
customer, and 17.1% for the average industrial customer.
    In the PGA filing, Cascade asked for $20.5 million in higher revenues.
This approved adjustment reflects prices the utility pays for natural gas on
behalf of its customers. The Company does not benefit or profit from this
change. It is simply a reflection on the changing wholesale commodity costs of
natural gas. The rate increase Cascade's customers will see under the PGA is
16% for the average residential customer, 18% for the average commercial
customer, and 21% for the average industrial customer.  These amounts are
partially offset by approval of the amortization of a refund filing.  That
filing resulted in a 3% decrease for all of the Company's Washington
customers.
    To reduce strain on household budgets, Cascade suggests that customers
sign up for its Budget Payment Plan. This plan allows customers to pay the
same amount every month. Budget Payment Plan customers build up a credit
during the summer months to help cushion the impact of the winter's bills.
Other avenues of assistance include Cascade's Winter Help program or the
Low-Income Home Energy Assistance Program. Customers can call their nearest
Cascade Natural Gas office for more information about any of these programs.
The increase in natural gas prices is part of a market cycle influenced by
supply and demand factors. A recent federal Energy Information Administration
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 power 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, industries, 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 pressures 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."
    Cascade Natural Gas Corporation is a local distribution company that
provides natural gas service to more than 145,000 residential, commercial and
industrial customers in Washington and more than 41,000 customers in Oregon.
The company provides service to 75 Washington communities in Adams, Benton,
Chelan, Cowlitz, Douglas, Franklin, Grant, Grays Harbor, Island, Kitsap,
Mason, Skagit, Snohomish, Walla Walla, Whatcom, and Yakima counties. Cascade's
common stock is listed on the New York Stock Exchange (NYSE) with the symbol
CGC.

    CONTACT:  Frank Mansell, Director, Public Information, 206-381-6838, or
Jon Stoltz, Sr. VP - Planning, Regulatory, & Consumer Affairs, 206-381-6823,
both of Cascade Natural Gas Corporation.

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