Arizona

Citizens Utilities agreed to sell all of its electric utilityoperations in Arizona and Vermont to Cap Rock Energy Corp. and itsKauai (Hawaii) electric division to Kauai Island Electric Co-op.The total sales price was $535 million and the transactions areexpected to close within twelve months. The operations serve atotal of 119,000 customers. Citizens’ electric utility operationsare the second group of the company’s Public Services businesses tobe sold. Citizens’ water and wastewater operations were sold inOctober 1999 for $835 million. Still to be finalized are the salesof Citizens’ gas distribution businesses. The proceeds from the allof the divestitures will be used to permanently fund Citizens’announced acquisitions of nearly one million telephone accesslines. Citizens Utilities provides telecommunications services andpublic services including gas distribution, electric distribution,water distribution and wastewater treatment services to 1.9 millioncustomers in 22 states.