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                                                                    EXHIBIT 99.1

FOR IMMEDIATE RELEASE


ENERGY WEST INCORPORATED
PRESS RELEASE

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GREAT FALLS, MONTANA, JULY 8, 2001

         ENERGY WEST INCORPORATED (EWST) announced today that its wholly-owned
subsidiary, ENERGY WEST RESOURCES (EWR), was granted a temporary restraining
order (TRO) on July 6, 2001 against PPL-Montana, LLC (PPLM). The TRO was granted
by United States District Court Judge Donald W. Molloy in Missoula, Montana in
response to a request by EWR.

         EWR is engaged in the business of selling energy to its customers,
including residential and commercial users. EWR's customers also include
hospitals, school districts and municipalities. A substantial amount of the
electric energy sold by EWR to such customers is purchased by EWR from PPLM
under a wholesale electricity supply contract. On June 29, 2001, PPLM gave EWR
notice of default and threatened early termination of the wholesale electricity
contract.

         In response to PPLM's notice of default and demands, EWR filed a
complaint against PPLM in Federal District Court for the District of Montana
seeking a declaratory ruling that EWR has not breached the wholesale electricity
contract and also seeking an injunction requiring PPLM to honor its commitment
under the wholesale electricity contract until its normal termination date of
June 30, 2002. EWR requested the TRO to preserve the status quo and to give the
parties an opportunity to resolve the dispute without further litigation. The
TRO temporarily prevents any termination of the wholesale electricity contract
by PPLM and sets a preliminary hearing on EWR's complaint for July 19, 2001.

         PPLM has cited the scheduling practices of EWR as the reason for its
notice of default and threatened early termination. Although EWR purchased less
than the full amount of power it was entitled to purchase from PPLM under the
wholesale electricity contract, EWR received substantial imbalance payments
(remarketing revenue) as a result of the amount of power that it scheduled from
PPLM. The imbalance payments were made to EWR by its transmission provider, The
Montana Power Company (MPC), pursuant to MPC's imbalance tariff authorized by
the Federal Energy Regulatory Commission (FERC). PPLM has taken the position
that it (and not EWR) is entitled to most or all of the remarketing revenue, and
that due to EWR's scheduling practices PPLM has the right to terminate the
wholesale electricity contract. Any recovery of damages by PPLM, as well as the
resulting costs to EWR of securing alternative supplies in the event of
termination of the wholesale electricity contract, could be material to EWST and
its financial condition.

         EWR believes that its scheduling practices were reasonable under the
circumstances, and that it is not in default under the wholesale electricity
contract. EWR intends to vigorously advocate and defend its position.


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         This press release contains forward-looking statements that involve
risks and uncertainties. The actual results of ENERGY WEST Resources and ENERGY
WEST Incorporated could differ materially from the expected results because of a
variety of factors, including business conditions and the state of the general
economy, particularly the utility and energy industries, energy prices, the
results of any litigation or regulatory proceedings relating to the PPLM
contract dispute, the competitive environment within the utility industry and
changes in laws and regulations that govern the Company's business, particularly
energy regulations.

For additional information, please contact:

         John Allen, Corporate Counsel, 406-791-7503, jcallen@ewst.com

         Edward J. Bernica, Vice President, CFO and COO, 406-791-7543,
         ejbernica@ewst.com

Our toll-free number is 1-800-570-5688.   Our web address is www.ewst.com

Our address is P. O. Box 2229, Great Falls MT 59403-2229.