1
                                 NEWS RELEASE

FOR RELEASE:                               CONTACT:
  Immediately                                Linda A. Kelley
                                             615-373-0104
                                             Ext. 224

                UNITED CITIES FILES FOR ILLINOIS RATE INCREASE

    BRENTWOOD, TENN.--November 15, 1996--United Cities Gas Co., (NASDAQ:UCIT),
a multistate distributor of natural and propane gas announced today it has
filed with the Illinois Commerce Commission requesting a general rate increase
totaling approximately $1.2 million in annual revenues.

    The application filed represents an overall rate increase of 6.1% for
approximately 23,000 customers in or near Harrisburg, Metropolis, Vandalia,
Virden and Salem, Illinois. United Cities has requested a 10.91% return on rate
base and 12.75% return on common equity. If approved by the Commission, new
rates would go into effect in mid-October of 1977.

    United Cities' Chairman, President and CEO, Gene C. Koonce, said the
company is seeking the proposed increase as a result of general inflationary
increases in expenses over the past seven years and increased investment in
plant facilities. Since the last rate filing in 1989, United Cities has
invested approximately $4.8 million in its Illinois service territory.

    United Cities Gas Company distributes natural and propane gas to
approximately 335,000 customers in ten states. The company is also engaged in
other energy-related businesses.



                       [United Cities Gas Company Logo]