NW Natural Signs Agreements to Help Address Looming Electricity Shortages

Apr 17, 2001, 01:00 ET from NW Natural

    PORTLAND, Ore., April 17 /PRNewswire/ -- NW Natural (NYSE:   NWN) today
 announced it has signed natural gas service agreements with Clark Public
 Utilities in Vancouver, Washington, and Wah Chang, a manufacturer of specialty
 metals and chemicals, located in Albany, Oregon.  The agreements will allow
 both organizations to produce electricity using their own generators.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/NWNATURAL )
     "In the current environment of electricity shortages we need to find more
 win-win solutions like this," said Richard Reiten, Chairman and CEO of
 NW Natural.  "If we work together and creatively explore the opportunities
 that exist, we can both reduce the risk of shortages and hold prices down."
     These agreements will also mean less impact on the environment.
 Generating electricity with natural gas produces significantly less air
 emissions than alternative fuels such as diesel or bunker oil.
     Under the one-year agreement, NW Natural will provide about two-thirds of
 the natural gas transportation service for temporary generators Clark Public
 Utilities is leasing to help fill a power supply gap this summer.  The
 agreement is effective July 1.
     Clark Public Utility's temporary generators will produce about
 50 megawatts of electricity over the next year.  Had Clark purchased the same
 amount of electricity on the wholesale market, the cost could have been at
 least twice as high.
     "Clark Public Utilities deserves a lot of credit for moving rapidly and
 creatively to protect their customers from shortages and rising prices,"
 Reiten said.
     NW Natural will furnish Wah Chang and possibly Clark Public Utilities with
 natural gas commodity, said Mike McCoy, Executive Vice President.  NW Natural
 buys most of its gas supplies from sources in British Columbia, Alberta and
 the U.S. Rocky Mountain region and has interstate pipeline capacity to bring
 those supplies to its service territory.  The company also owns its own
 underground storage fields near Mist, Oregon.  Storage helps keep prices down.
 NW Natural buys gas supplies at lower prices in the summer; stores the gas and
 then uses it in the winter in place of higher cost supplies.
     NW Natural will provide transportation service and natural gas supplies to
 Wah Chang for one year, beginning within the next 30 days.  The agreement will
 allow Wah Chang to power natural gas reciprocating engines that could provide
 the company with up to 14 megawatts of its own electricity.
     "It's another win-win," McCoy said.  "Clark Public Utilities will benefit
 by using natural gas for power generation at lower prices than they could get
 in the wholesale market, and NW Natural will benefit from a new source of
 revenues from gas transportation services."
     NW Natural is actively looking for additional ways to help address the
 current energy crisis.  The company is working with a number of other utility
 and industrial customers on creative arrangements that could quickly bring on
 additional electric generation.
     NW Natural is a 142-year-old local natural gas distribution company with
 more than 520,000 residential, commercial and industrial customers in
 northwest Oregon and southwest Washington.
 
 

SOURCE NW Natural
    PORTLAND, Ore., April 17 /PRNewswire/ -- NW Natural (NYSE:   NWN) today
 announced it has signed natural gas service agreements with Clark Public
 Utilities in Vancouver, Washington, and Wah Chang, a manufacturer of specialty
 metals and chemicals, located in Albany, Oregon.  The agreements will allow
 both organizations to produce electricity using their own generators.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/NWNATURAL )
     "In the current environment of electricity shortages we need to find more
 win-win solutions like this," said Richard Reiten, Chairman and CEO of
 NW Natural.  "If we work together and creatively explore the opportunities
 that exist, we can both reduce the risk of shortages and hold prices down."
     These agreements will also mean less impact on the environment.
 Generating electricity with natural gas produces significantly less air
 emissions than alternative fuels such as diesel or bunker oil.
     Under the one-year agreement, NW Natural will provide about two-thirds of
 the natural gas transportation service for temporary generators Clark Public
 Utilities is leasing to help fill a power supply gap this summer.  The
 agreement is effective July 1.
     Clark Public Utility's temporary generators will produce about
 50 megawatts of electricity over the next year.  Had Clark purchased the same
 amount of electricity on the wholesale market, the cost could have been at
 least twice as high.
     "Clark Public Utilities deserves a lot of credit for moving rapidly and
 creatively to protect their customers from shortages and rising prices,"
 Reiten said.
     NW Natural will furnish Wah Chang and possibly Clark Public Utilities with
 natural gas commodity, said Mike McCoy, Executive Vice President.  NW Natural
 buys most of its gas supplies from sources in British Columbia, Alberta and
 the U.S. Rocky Mountain region and has interstate pipeline capacity to bring
 those supplies to its service territory.  The company also owns its own
 underground storage fields near Mist, Oregon.  Storage helps keep prices down.
 NW Natural buys gas supplies at lower prices in the summer; stores the gas and
 then uses it in the winter in place of higher cost supplies.
     NW Natural will provide transportation service and natural gas supplies to
 Wah Chang for one year, beginning within the next 30 days.  The agreement will
 allow Wah Chang to power natural gas reciprocating engines that could provide
 the company with up to 14 megawatts of its own electricity.
     "It's another win-win," McCoy said.  "Clark Public Utilities will benefit
 by using natural gas for power generation at lower prices than they could get
 in the wholesale market, and NW Natural will benefit from a new source of
 revenues from gas transportation services."
     NW Natural is actively looking for additional ways to help address the
 current energy crisis.  The company is working with a number of other utility
 and industrial customers on creative arrangements that could quickly bring on
 additional electric generation.
     NW Natural is a 142-year-old local natural gas distribution company with
 more than 520,000 residential, commercial and industrial customers in
 northwest Oregon and southwest Washington.
 
 SOURCE  NW Natural