Cascade Natural Gas 8-K FISCAL YEAR 2003 4th QUARTER AND FULL YEAR EARNINGS

Exhibit 99.1

FISCAL YEAR 2003 4^th QUARTER AND FULL YEAR EARNINGS

	For Immediate Release
Contact:	J. D. Wessling
	Cascade Natural Gas Corporation
	206/624-3900

November 10, 2003 [Seattle] Cascade Natural Gas Corporation (NYSE: CGC) reported a loss of $2.4 million, or $0.22 per share for the 2003 fiscal fourth quarter, compared to a $2.5 million loss, or $0.23 per share for the fourth quarter ended September 30, 2002. The 2003 reported loss included before-tax charges of $1.0 million primarily for employee severance charges and a mark-to-market derivative valuation. The Company typically reports a loss for the summer quarter ending September 30.

Full year earnings were $9.1 million, or $.82 per share compared to $10.8 million, or $.97 per share for the fiscal year ended September 30, 2002.

4^th Quarter Results

Operating margins (revenue minus gas costs and revenue taxes) were essentially even in the quarterly comparison. To support new, fixed-price contracts for firm delivery of natural gas to a group of industrial customers in FY 2004, Cascade entered into a swap and cap agreement. Mark to market valuation of the swap and cap had a negative $315,000 effect on operating margins at September 30, 2003.

Cost of operations for the quarter was up $340,000 over the fourth quarter of FY 2002. The increase is essentially attributable to $525,000 of accrued severance payments.

Capital expenditures in the fourth quarter were $10.9 million, which included $3.6 million of expenditures for a project to automate meter reading.  The project (AMR) started in the third quarter and is expected to continue through the first quarter of fiscal year 2005.

Full Year Results

Operating margins in FY 2003 were $90.7 million compared to $90.5 million in FY 2002, a $172,000 increase. Residential and commercial operating margin declined $2.1 million from FY 2002. Fiscal 2003 weather was 7.6% warmer than FY 2002, reducing margins by an estimated $4.6 million. Partially offsetting residential and commercial margin reductions due to lower consumption was a 4.3% increase in the number of customers, contributing $2.6 million in new operating margin.

Gas Management Services operating margin was $3.5 million compared to $370,000. Both years were affected by gas supply contract cancellation charges: a FY 2003 negative adjustment of $865,000 compared to a FY 2002 negative adjustment of $2.8 million. The rest of the increase results from greater natural gas deliveries to the group of industrial customers selecting gas supply service. New FY 2004 contracts will use swap and other derivative arrangements with a financial institution to support fixed prices to customers where appropriate.

Electric generation operating margin was $9.0 million for FY 2003 compared to $9.3 million in FY 2002. Lower margins in FY 2003 reflect sluggish economic conditions, and adequate supplies of lower cost hydropower displacing electricity from gas generation facilities.

Cost of Operations increased $3.0 million for the year.  The primary reasons for the increase were:

·Benefits expense was up $1.9 million over the prior year due to a 3^rd quarter $1.5 million pension plan curtailment charge stemming from plan changes implemented as a result of a benefits study aimed at providing greater cost control. Also, there were generally higher retiree medical and retirement expenses during the first three quarters of the year.

·Consulting expense increased approximately $650,000.  The increase was primarily attributable to the benefits changes study and to a project to prepare the Company for compliance with certain new S.E.C. internal control documentation and reporting requirements.

·Labor expense was up $1 million for the year due to employee severance charges and normal salary and wage increases.

·Depreciation expense and property taxes were up a total of $583,000, tracking increases in assets.

Capital expenditures were $27.7 million in FY 2003, somewhat less than the expected $30 million. Approximately $10 million out of a total capital budget of $35 million for FY 2004 will be spent on the AMR project mentioned above. The project has an attractive return resulting from planned reductions in meter reading expense that will be fully phased in by the 2^nd quarter of fiscal year 2005.

 Management reiterates earnings guidance provided last quarter, which said Cascade Natural Gas Corporation projects fiscal 2004 earnings of $1.30 to $1.40 per share.  Expectations are based on significant cost savings, especially from the revised benefits programs, and on more favorable weather.

The Company previously announced its declaration of a $0.24 per share quarterly dividend on common stock, payable November 14, 2003 to shareholders of record at the close of business October 15, 2003.

Cascade Natural Gas Corporation is a local distribution company providing natural gas service to approximately 207,000 customers in the states of Washington and Oregon.

Statements contained in this report that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual future results to differ materially. Such risks and uncertainties with respect to the Company include, among others, its ability to successfully implement internal performance goals, competition from alternative forms of energy, consolidation in the energy industry, the failure or inability of key natural gas suppliers to honor their commitments, the capital-intensive nature of the Company’s business, regulatory issues, including the need for adequate and timely rate relief to recover increased capital and operating costs resulting from customer growth and to sustain dividend levels, the weather, increasing competition brought on by deregulation initiatives at the federal and state regulatory levels, the potential loss of large volume industrial customers due to “bypass” or the shift by such customers to special competitive contracts at lower per unit margins, exposure to environmental cleanup requirements, and economic conditions, particularly in the Company’s service area.

Cascade Natural Gas Corporation

Financial Highlights — (Thousands, except per share amounts)

Fourth Quarter Fiscal 2003

	Fiscal Year 2003																Fiscal Year 2002
	Three Months Ended													Year			Three Months Ended												Year
														Ended															Ended
	Dec 31				Mar 31			Jun 30			Sep 30			Sep 30			Dec 31			Mar 31			Jun 30			Sep 30			Sep 30
Revenues	$		100,496		$	109,286		$	53,793		$	39,180		$	302,755		$	102,761		$	122,361		$	56,815		$	39,041		$	320,978
Operating Margin	29,509				29,647			17,328			14,191			90,675			28,643			33,456			14,253			14,150			90,502
Cost of Operations	15,789				15,749			17,249			15,597			64,384			15,911			15,282			14,890			15,256			61,339
																��
Operating Income (Loss)	13,720				13,898			79			(1,406		)	26,291			12,732			18,174			(637		)	(1,106		)	29,163
Interest and Other	3,199				3,112			3,197			2,946			12,454			2,901			3,247			3,224			3,248			12,620
Income Taxes	3,840				3,937			(1,138		)	(1,906		)	4,733			3,588			5,448			(1,409		)	(1,846		)	5,781
Net Income (Loss)	$	6,681			$	6,849		$	(1,980	)	$	(2,446	)	$	9,104		$	6,243		$	9,479		$	(2,452	)	$	(2,508	)	$	10,762
Common Shares Outstanding:
End of Period	11,045				11,071			11,101			11,132			11,132			11,045			11,045			11,045			11,045			11,045
Average	11,045				11,057			11,086			11,114			11,075			11,045			11,045			11,045			11,045			11,045
Earnings (Loss) Per Share
Basic	$	0.61			$	0.62		$	(0.18	)	$	(0.22	)	$	0.82		$	0.57		$	0.86		$	(0.22	)	$	(0.23	)	$	0.97
Diluted	$	0.60			$	0.62		$	(0.18	)	$	(0.22	)	$	0.82		$	0.56		$	0.86		$	(0.22	)	$	(0.23	)	$	0.97
Dividends Paid per share	$	0.24			$	0.24		$	0.24		$	0.24		$	0.96		$	0.24		$	0.24		$	0.24		$	0.24		$	0.96
Capital Expenditures (net)	$	5,524			$	5,254		$	6,063		$	10,852		$	27,693		$	4,557		$	5,240		$	4,422		$	6,515		$	20,734
Book Value Per Share	$	10.70			$	11.10		$	10.70		$	10.11		$	10.11		$	11.34		$	11.96		$	11.49		$	10.38		$	10.38
Market Closing Price	$	20.00			$	19.40		$	19.10		$	19.60		$	19.60		$	22.05		$	21.22		$	20.90		$	19.70		$	19.70
Active Customers (End of Period)	207				209			207			206			206			199			201			198			198			198
Gas Deliveries (Therms):
Residential & Commercial	79,638				84,967			37,465			20,741			222,811			79,413			98,714			36,655			21,709			236,491
Industrial & Other	260,369				252,025			176,667			250,041			939,102			303,130			285,692			160,047			216,036			964,905
Degree Days
Normal	2,042				2,272			871			233			5,418			2,136			2,282			872			220			5,510
Actual	2,027				2,049			826			140			5,042			2,038			2,351			840			226			5,455
Colder (warmer) than 5-year avg.	(1			)%	(10		)%	(5		)%	(40		)%	(7		)%	(5		)%	3		%	(4		)%	3		%	(1		)%