Cascade Natural Gas Corporation

Cascade Natural Gas Corporation (Cascade or the Company) was incorporated under the laws of the state of Washington on January 2, 1953. Its principal business is the distribution of natural gas to customers in the states of Washington and Oregon. Approximately 72% of its residential and commercial gas distribution margins are from customers in the state of Washington. As of September 30, 2005, the Company had approximately 196,000 residential customers, 30,000 commercial customers, and 719 industrial and other larger customers. Residential, commercial, and most small industrial customers are generally core customers who take traditional “bundled” natural gas service, which includes supply, peaking service, and upstream interstate pipeline transportation. Sales to core customers in fiscal 2005 accounted for approximately 24% of gas deliveries and 71% of operating margin.