Northwest Natural Gas Files Fifth Consecutive Rate Reduction.

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 17, 1996--Northwest Natural Gas Co. (Nasdaq National Market: NWNG) has filed for a rate reduction of 3.0 percent for its Oregon residential customers, to be effective Dec. 1, 1996.

The reduction will lower the average residential customer's bill

The reduction includes the effects of lower gas costs from the company's suppliers for the coming year. It also includes amounts to be refunded over the next 12 months for gas cost savings, Ballot Measure 5 property tax savings and Oregon "tax kicker" savings realized in prior years. The change will have no effect on company earnings.

"These price reductions will benefit our customers as we move into the winter heating season," Robert L. Ridgley, chairman and chief executive officer, said. "We have added about 100,000 new residential and commercial customers since 1990, and they should be aware that our natural gas rates are lower now than they were 15 years ago.

"Natural gas is this region's best energy value," Ridgley added. "Gas costs about 50 percent less than electricity per year for space heating, and about 40 percent less for water heating, as compared to rates charged by Portland General Electric, our primary electric utility competitor."

The proposed reductions, which require approval of the Oregon Public Utility Commission, amount to 3.9 percent for commercial customers, 4.4 percent for industrial firm customers and 6.4 percent for interruptible customers.

Northwest Natural Gas serves about 392,000 customers in its Oregon service territory.

CONTACT: Northwest Natural Gas

Press: Doug Yocom, 503/220-2426 or 503/226-4211

Investors: Virginia Vance Burgess, 503/220-2583 or 503/226-4211