Utilities and Transportation Commission

SEATTLE--(BUSINESS WIRE)--October 24, 2007 The Washington Utilities and Transportation Commission (UTC) approved the purchased gas adjustment requested by Cascade Natural Gas Corp., which will result in an overall reduction for residential customers of 17.6 percent. For a residential customer with consumption of 59 therms, this will result in a reduction of $13.01 per month.

"This rate reduction is because of lower wholesale prices, which are the result of increased natural gas supplies and because of the truing up of last year's actual gas costs, which were less than we had projected when we last established rates," said Jon Stoltz, senior vice president -- regulatory and gas supply for Cascade. "Replenished underground storage and no supply interruptions due to hurricanes so far this year have contributed to an improving natural gas supply picture."

A purchased gas adjustment, also known as 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.

Cascade receives the majority of its natural gas from Alberta and British Columbia, as well as the Rocky Mountain region in the United States. Cascade mitigates price volatility by purchasing natural gas supplies in multi-year contracts, using financial hedges and by using underground storage.

"We understand that, even with lower prices, some of our customers may need help paying their bills this winter," said Julie Marshall, vice president -- customer service for Cascade. "I encourage customers seeking energy savings tips or information on low-income energy assistance programs to visit our website at www.cngc.com."

Cascade Natural Gas is a natural gas distribution company serving approximately 185,000 customers in Washington. Cascade serves approximately 245,000 residential, commercial, industrial and transportation customers in 93 communities in Washington and Oregon. Cascade Natural Gas Corporation is a subsidiary of MDU Resources Group, Inc. (NYSE:MDU). More information is available at www.cngc.com.

CONTACT: Cascade Natural Gas Corp. Media Contact: Larry C. Rosok, 206-381-6711

Last Updated: October 24, 2007 19:41 EDT