-----Original Message-----
From: Taylor, Gina 
Sent: Thursday, January 31, 2002 2:53 PM
To: Gadd, Eric; Hyatt, Kevin
Subject: FW: Clip


fyi...

Gina


-----Original Message-----
From: BWHO [mailto:BWHO@bizwire.com]
Sent: Thursday, January 31, 2002 2:48 PM
To: Taylor, Gina
Subject: Clip



PRESS RELEASE:Utilicorp Unit To Develop Ariz. Facility >UCU
Jan 31 at 15:20

  ( BW)(MO-AQUILA)(UCU) Aquila Set to Develop Arizona Gas Storage Facility
  Business Editors
  KANSAS CITY, Mo.--(BUSINESS WIRE)--Jan. 31, 2002--Aquila, the wholly owned
subsidiary of UtiliCorp United (NYSE: UCU), announced today that it has
purchased the Red Lake Storage Project from Southwest Gas Corporation.
  The purchase includes 36,000 acres approximately 30 miles north of Kingman,
Arizona, and the rights to develop a salt cavern storage facility. Along with
the land, Aquila purchased the water and mineral rights necessary to develop the
facility.
  The facility will have a gas storage capacity of 12 billion cubic feet (Bcf).
The first phase of the facility, with a storage capacity of 6 Bcf, is expected
to be in operation by the fourth quarter of 2003, with the full 12 Bcf planned
for the fourth quarter of 2004. The facility will connect to pipelines operated
by El Paso Natural Gas Pipeline and Transwestern Pipeline Company. Aquila
anticipates beginning an open season for the facility within the next seven to
ten days. In an open season period a company seeks storages commitments from
potential clients.
  "This facility fits with our strategy to build or acquire assets that enable
us to provide clients with the energy they need when they encounter dramatic
increases in demand," said Ed Mills, president and chief operating officer of
Aquila.
  The facility is positioned to serve Arizona power plants, as well as other
facilities in Nevada and California. There are approximately 60 gas-fired power
plants in Arizona, representing one of the largest single concentrations of such
facilities in the United States
  "Southwest Gas Corporation is pleased to see the Red Lakes Storage Project
being developed," said Ed Zub, executive vice president of Southwest Gas
Corporation. "Development of this project will benefit the states of Arizona and
Nevada where Southwest Gas Corporation serves more than 1.1 million customers."
  Aquila currently owns one of the largest independent storage facilities in the
southwest, a 21 Bcf facility in Katy, Texas. The company is also currently
completing the acquisition of a storage facility near Lodi, California, which
will provide gas to the frequently energy-short cities in northern California.
With the addition of the Red Lake Storage Project, Aquila will be one of the
largest independent storage providers for power plants and local gas
distribution companies in the Southwest.
  Based in Kansas City, Aquila is a leading wholesaler of natural gas, power and
coal in North America and provider of risk management services. Aquila also
provides wholesale energy and risk management services in the United Kingdom,
Germany and Scandinavia. Aquila is wholly owned by Kansas City-based UtiliCorp
United, an international energy company with 4 million customers across the U.S.
and in Canada, the United Kingdom, New Zealand and Australia. Additional
information is available at www.aquila.com, or contact Mark D. Cook at 816/527-
1369.
  --30--LVD/dx*
  CONTACT: Aquila
  Media Contact:
  Al Butkus, 816/467-3616
  Media Relations, 816/467-3000
  Investor Contact:
  Ellen Fairchild, 816/527-1409
  KEYWORD: MISSOURI ARIZONA CALIFORNIA NEVADA UNITED KINGDOM GERMANY NEW ZEALAND
AUSTRALIA INTERNATIONAL EUROPE ASIA PACIFIC CANADA
  INDUSTRY KEYWORD: ENERGY OIL/GAS UTILITIES
  SOURCE: Aquila Today's News On The Net - Business Wire's full file on the
Internet
  with Hyperlinks to your home page.
  URL: http://www.businesswire.com 

  (END) DOW JONES NEWS  01-31-02
  03:20 PM

Company Symbols: UCU
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               M/NND M/TPX M/UTI P/NRG R/MO R/NAPW R/NERC R/NME R/SPP R/US
               R/USC PR/EXCL