Cascade Seeks Rate Adjustment to Offset Steep Increase in Supply Costs.

SEATTLE -- The wholesale cost of natural gas has increased by 80% in the past 12 months and could climb higher during the coming heating season. For that reason, Cascade Natural Gas Corporation (NYSE:CGC) today filed a request with the Washington State Utilities & Transportation Commission to pass through the additional cost of natural gas purchased to serve customers.

Cascade is requesting an overall increase of 26.4% in its purchased gas adjustment filing. Because it is a simple pass through, the company will generate no additional profits from the proposed increase. A request to increase Cascade's rates in Oregon, due to higher wholesale natural gas costs, was approved last week by the Oregon Public Utility Commission.

A number of factors are driving up the cost of all types of energy. The most obvious is increased pressure on U.S. energy prices because of an exceptionally active hurricane season. In addition, the global energy market is being driven by a continued increase in demand, particularly in China and India.

"Even though these events are occurring in other parts of the country or the world, they impact the cost of energy in Washington and Oregon," said David W. Stevens, Cascade President and CEO. Stevens added "the skyrocketing cost of natural gas at the wholesale level poses challenges to customers, to us as distributors, and to the Northwest economy as a whole."

There are a number of things that customers can do to help reduce their energy consumption this winter such as:

--Sealing noticeable air leaks around windows and doors;

--Having furnaces inspected and serviced to ensure they are in top working order;

--Turning down thermostats a few degrees while still keeping rooms comfortable, and

--Insulating attics, outside walls, and floors over crawlspaces.

Cascade also offers a Budget Payment Plan, which averages out the amount of a customer's year-round bill so that monthly payments are more consistent. For additional information on payment options and low-income assistance programs, visit the company's website and click on "Customer Care."

Customers seeking energy savings tips or information on low-income assistance programs should visit Cascade's website at www.cngc.com.

Cascade Natural Gas Corporation, a natural gas distribution company, serves approximately 227,000 residential, commercial, industrial and transportation customers in 93 communities in Washington and Oregon. More information is available at www.cngc.com.