ORDER NO. 96-039

ENTERED FEB 13 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UF 4112(1)

DISPOSITION: APPLICATION GRANTED WITH CONDITIONS

On January 4, 1996, Cascade Natural Gas Corporation (CNG or Company) filed a supplemental application pursuant to ORS 757.415 to extend its current authority to issue up to $50,000,000 in unsecured medium-term notes (MTNs) until sold. To date, no notes have been issued. CNG estimates these notes will be sold not later than December 31, 1998. CNG's current authority, as granted in Order No. 93-1750, expired December 31, 1995.

On January 16, 1996, CNG filed a more definitive statement on the use of proceeds from the proposed securities issuance. CNG will use the proceeds only for the acquisition of utility property or the construction, extension or improvement of utility facilities; the improvement or maintenance of service; the discharge or lawful refunding of its obligations (such as relatively higher-coupon debt and maturing debt previously authorized by the Commission); and, refunding the Company's treasury expended on utility purposes. To the extent the Company's treasury is refunded, the original expenditures, or their precedents, were made for purposes described by ORS 757.41(1)(a), (b) or (e). To the extent that obligations are discharged or refunded, those obligations or their precedents were used for purposes described by ORS 757.415(1)(a), (b) or (e). These purposes expand the intended use of the proceeds as described in Order 93-1750. However, these intended uses of the proceeds are fully consistent with the authorities in ORS 757.415(1)(a), (b), or (e).

At its February 6, 1996, public meeting, the Commission reviewed the staff recommendation and approved the application.

ORDER

IT IS ORDERED that:

The application of Cascade Natural Gas Corporation to extend its current authority to issue up to $50,000,000 of unsecured MTNs is granted with no expiration date, subject to the following conditions:

1. Cascade shall maintain investment-grade bond ratings.
   
2. Cascade shall report at least two MTN postings within 60 days of issuance to ensure that the notes were competitively priced.
   
3. Commission Order No. 93-1750 shall, to the extent not specifically affected by this order, remains in full force and effect.
   
   
   

Made, entered, and effective ________________________.

A party may request rehearing or reconsideration of this order within 60 days pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.