Citizens Utilities

---------------------- Forwarded by Jeff Dasovich/SFO/EES on 09/06/2000 02:18
PM ---------------------------
From: Marcie Milner@ENRON on 09/06/2000 11:19 AM MST
To: Chris H Foster/HOU/ECT@ECT, Kim Ward/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT,
Roger Yang/SFO/EES@EES
cc: Paul Kaufman/PDX/ECT@ECT, Mona L Petrochko/SFO/EES@EES, Jeff
Dasovich/SFO/EES@EES, Susan_J_Mara@enron.com, Leslie Lawner/HOU/EES@EES, Dave
Fuller/PDX/ECT@ECT
Subject: Citizens Utilities

The following article appeared in the Arizona Republic last week. I will
keep an eye out for the filing.

"Citizens Utilities says it won't triple its rates"

Citizens Utilities is assuring customers that it won't double or triple
rates, even though the electric company is paying triple the normal amount to
purchase energy. Citizens recently announced a possible rate increase due to
higher charges from its energy supplier, Arizona Public Service Co. The
company estimates it paid $19 million to APS for energy in June. Citizens
normally pays $6 million a month, spokesman Tom Ferry said. Citizens
customers can expect a rate increase, but the utility company is proposing to
spread out the increases through a three year recovery period for the rate
increase expected for June, July and August, Ferry said.

Citizens will file a plan requesting a rate increase with the ACC in a week
or two. Ferry wouldn't say what the rate increase would be if the ACC
approves a shorter recovery period than the one Citizens proposes. The
earliest any rate increase could take effect would be February, an ACC
spokeswoman said. Ferry blamed the increase on a rise in summer temperatures
and economic growth resulting in above-normal demand for electricity.