ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON PHOENIX, AZ. 85007

TO: EDITORS, NEWS DIRECTORS
DATE: October 29, 1996

FOR: IMMEDIATE RELEASE
CONTACT: Jon Poston, (602) 542-0843

COMMISSION APPROVES CITIZENS GAS RATE SETTLEMENT

The Arizona Corporation Commission has approved a settlement of the Citizens Utilities Co. Northern Arizona Gas Division rate case, allowing a $2.7 million rate increase. The settlement freezes rates until November 1, 1998, and establishes a $100,000 Low Income Residential Assistance program for customers who need assistance with fuel bills. Citizens Utilities initially applied for a $6.7 million (14.8%) rate increase.

Here is the rate comparison:

Residential present rates company proposed approved
Basic Monthly Charge: $4.85 $5.50 $5.00
Gas per therm: $0.4086 $0.5465 $0.4414

For the average residential customer, using 58 therms of gas per month, the settlement will raise the present monthly bill of $28.55 by $2.05 (7%) to $30.60, excluding the purchased gas adjustor factor. The rate increase is largely due to increased investment by Citizens in facilities to improve service to existing customers, and to extend service to new customers in areas previously without natural gas.

Citizens Utilities Northern Arizona Gas Division serves approximately 77,000 customers in Apache, Coconino, Mohave, Navajo and Yavapai counties.