Higher wholesale natural gas prices, which are the result of high demand for natural gas, means that rates will increase when Cascade files for its annual purchase gas cost adjustments (PGA) with the Washington Utility and Transportation Commission (WUTC) and the Oregon Public Utility Commission (OPUC). A PGA is usually filed once a year and is designed to pass through the changes in the cost of natural gas and does not affect company profits. There is no mark-up or profit for Cascade in the PGA.

The amount of the adjustment is not finalized, but is anticipated to be fairly high. In Washington , natural gas price is estimated to increase by 25% to 30%. While in Oregon , natural gas price is estimated to increase by 15% to 20%. Typically rate adjustments due to a PGA become effective on November 1.

What is Cascade doing to protect our customers from high natural gas prices?

1. Conservation. Cascade’s Conservation Incentive Program will help offset the initial cost of installing energy-efficient home & business improvements. These energy efficiency solutions will save you money, reduce the emissions of greenhouse gasses, and reduce your carbon footprint, while continuing to meet the energy needs of your home or business, today and in the future.

For customers with fixed or limited incomes who are unable to afford installing conservation measures in their homes, there are safeguards in place to ease the energy burden. There are state agencies available to assist in weatherizing your home. The agencies are listed on Cascade’s
website at www.cngc.com/conservation.

To learn more information about Cascade’s conservation programs, visit our website or call:

• WA Residential Customers: 1-866-626-4479
• WA Commercial & Industrial Customers: 1-866-450-0005
• OR Customers: 1-866-368-7878

2. Price Hedging. Cascade Natural Gas Corporation has worked to mitigate the continued volatility of the wholesale price of natural gas by following a structured, rolling three-year price hedging program. This program reduces the impact of significant changes in the wholesale price by almost 60%.

3. Pipeline Expansions. To ensure additional capabilities to access natural gas supplies for our customers, Cascade is participating in two
new proposed pipelines: Sunstone Pipeline and Blue Bridge Pipeline. The Sunstone - Blue Bridge pipelines would provide Cascade with additional access to Rockies gas supplies for our core customers. These proposed pipelines are expected to be in service in 2011.

4. Residential Budget Payment Plan. Cascade’s Residential Budget Payment Plan makes your energy bill more predictable and budget friendly. To determine your monthly budget amount, your annual bill is estimated, based on your usage in the previous year, and divided over 12 monthly payments. Your account will be reviewed every 3 months and adjusted if necessary to make sure the balance will be as close to zero as possible at the end of the plan year. Any remaining balance will be included in the following year’s payment amount. Some customers choose to combine this plan with the Automatic Payment Plan for ease and predictability. For more information on Cascade’s Budget Payment Plan, contact Cascade at 1-888-522-1130.

5. Winter Help Program. Cascade’s Winter Help Program is a
partnership between employees, customers, and local community
service agencies. It was created to help low-income customers pay their natural gas bills. Since it began, the Winter Help Program has helped more than 10,000 low-income families pay their natural gas bills and keep their homes warm all winter long.

6. Washington Energy Assistance Fund (WEAF). Every year, Cascade contributes $800,000 to assist low-income customers with paying their natural gas bill. The money is allocated and dispersed to 13 Washington community action agencies located in Cascade’s service territories.

Oregon Public Purpose Charge (PPC). Every year, Cascade
contributes $500,000 or more as Public Purposes Funds to support energy efficiency programs, as well as low-income conservation and bill assistance activities.

7. LIHEAP - Washington. Customers having trouble paying their natural gas bills may also qualify for the Low-Income Energy Assistance Program (LIHEAP), which helps low-income households pay part of their energy bills. To find out if you are eligible for this program, or to apply for
assistance, call the state agencies listed on Cascade’s website at www.cngc.com/customer/lowincome.asp.

LiEAP - Oregon. Customers having trouble paying their natural gas bills may also qualify for the Low-Income Energy Assistance Program (LIHEAP), which helps low-income households pay part of their energy bills. To find out if you are eligible for this program, or to apply for
assistance, call the state agencies listed on Cascade’s website at www.cngc.com/customer/lowincome.asp.

Important Links

Northwest Gas Association

• State of Natural Gas in the Northwest
• Press Release: Soaring Natural Gas prices drive up rates this fall
• Natural Gas Prices in the Pacific Northwest
• Use Natural Gas Wisely

Oregon Public Utility Commission

• News Release: Substantial Increase in Winter Natural Gas Prices Predicted
• Energy Saving Tips for Gas Customers

Washington Utilities and Transportation Commission