<PAGE>

                                                                   EXHIBIT 10.32

BPAmoco                                       AMOCO ENERGY TRADING CORPORATION
                                              A subsidiary of We BP Amoco Group
                                              501 WestLake Park Boulevard
                                              Houston, Texas 77079

November 17, 1999



Cascade Natural Gas Corporation
222 Fairview Avenue
Seattle, Washington 98109

Attention:        Ms. Pattie Grable

STORAGE MANAGEMENT AGREEMENT

Dear Ms. Grable:

This letter documents the storage management agreement between Cascade
Natural Gas Corporation (Cascade) and Amoco Energy Trading Corporation
(AETC), Part of BP Amoco Group, relating to a portion of Cascade's storage
capacity in the Jackson Prairie storage field operated by NWPL.

Contract Term:                     November 1, 1999 through October 31, 2000,
                                   extendible by mutual agreement.

Storage Capacity:                  604,351 MMbtu's

Contracted Withdrawal Capacity:    16,789 MMbtu/D

Bonus Payment:                     US $ < * > payable by AETC to Cascade on
                                   or before November 24, 1999. The Bonus
                                   Payment is the consideration for Cascade
                                   allowing AETC to manage and use its storage
                                   rights as provided in this agreement.

Optimization Profit Sharing:       In the event AETC recovers 100% of the
                                   Bonus Payment, as optimization profits
                                   generated by its storage and cycling
                                   activities during the Contract Term, any
                                   additional such optimization profits shall
                                   be shared between AETC (< * > %) and Cascade
                                   (< * > %), payable within thirty (30) days
                                   after the end of the Contract term.

< * > = Redacted

<PAGE>

CASCADE'S STORAGE MANAGEMENT AGREEMENT
NOVEMBER 17, 1999
PAGE 2 OF 4

Winter Priority:                   Cascade shall retain the right to call on
                                   up to 604,351 MMbtu's of storage gas
                                   between November 1, 1999 through March 31,
                                   2000. As such, AETCs right to cycle storage
                                   during this winter period shall be
                                   subordinated to Cascade's right to withdraw
                                   up to 604,351 MMbtu's during this period.
                                   Any AETC winter cycling activity shall be
                                   designed not to infringe upon Cascade's
                                   contract withdrawal rights as stated above.

Summer Refill:                     It is the intent of the parties that AETC
                                   during the contract term will manage the
                                   refill of Cascade's storage capacity, in
                                   compliance with tariff inventory capacity
                                   targets, redelivering to Cascade 604,351
                                   MMbtu's in the storage account at the end
                                   of the Contract Term. AETC will cause
                                   refill gas to be injected more or less
                                   ratably during the summer injection season.
                                   Cascade's ratable daily refill will be
                                   determined by dividing the cumulative
                                   volume withdrawn by Cascade through 3/31/00
                                   by 183 days (i.e., up to 604,351 MMbtu's
                                   divided by 183 days equals 3,302 Mmbtud).
                                   In addition, with notice to AETC at least 5
                                   business days prior to the beginning of the
                                   month, Cascade may request that AETC refill
                                   at a daily quantity of up to 125% of the
                                   ratable daily refill quantity for such
                                   month. For the 604,351 MMbtu's of supply,
                                   Cascade shall pay AETC the pertinent
                                   I.F.E.R.C. NWPL first of month index price
                                   plus applicable transportation and storage
                                   costs incurred by AETC. Cascade may elect,
                                   from time to time, to convert such first of
                                   month index price to either a) a fixed
                                   price for one or more future months, or b)
                                   a daily price tied to Gas Daily index
                                   prices. If Cascade wants a quote for either
                                   such price, it shall notify AETC at least 5
                                   business days prior to the beginning of the
                                   applicable month. AETC shall provide
                                   Cascade a quote as soon as possible for the
                                   requested pricing alterative(s) (a fixed
                                   price or the Gas Daily average price for
                                   the upcoming month) adjusted to reflect
                                   market conditions. At that time, Cascade
                                   shall be available to verbally respond
                                   immediately to the quote provided by AETC
                                   and to elect whether to accept the
                                   alternative pricing. A verbal acceptance by
                                   Cascade shall be binding upon the parties,
                                   and AETC shall promptly confirm by
                                   facsimile Cascade's acceptance of the
                                   alternative pricing quote. If Cascade does
                                   not accept the

<PAGE>

CASCADE'S STORAGE MANAGEMENT AGREEMENT
NOVEMBER 17, 1999
PAGE 3 OF 4

                                   alternative pricing, then the aforesaid
                                   I.F.E.R.C. based price shall be the price
                                   for that month. Upon request, AETC will
                                   apprise Cascade of inventory volumes and
                                   WACOG.

Operations:                        Cascade shall make its nominations to and
                                   from the Jackson Prairie storage account
                                   directly to AETC. Cascade shall designate
                                   AETC as its Agent for nominations to
                                   Williams Pipeline - West regarding Cascade's
                                   storage account applicable to this
                                   agreement. Cascade and AETC shall
                                   coordinate actual activities associated
                                   with the Jackson Prairie storage facility,
                                   including operating practices ensuring
                                   Cascade's nominations to AETC in a timely
                                   manner for AETC to be compliant with all
                                   Gas Industry Standards Board requirements.
                                   However, Cascade will not have the right or
                                   ability to dictate the manner in which AETC
                                   uses or cycles the Jackson Prairie storage
                                   account unless the activities of AETC can
                                   be demonstrated to adversely impact
                                   Cascade's right to call on winter gas as
                                   stated in Winter Priority, above. Cascade
                                   and AETC will cooperate to minimize the
                                   number and severity of renominations.

Storage and Transport Costs:       Cascade shall continue to bear all fixed
                                   transportation and storage charges related
                                   to the storage capacity, and all variable
                                   transportation and storage charges
                                   (including commodity and fuel charges)
                                   relating to the withdrawal and refill of up
                                   to 604,351 MMbtu's. AETC shall pay all
                                   other variable costs (including commodity
                                   and fuel charges) it incurs in the conduct
                                   of its storage cycling activities.

Value of Storage Cycling:          The value of storage management to AETC
                                   (and to Cascade once AETC recovers the
                                   Bonus Payment through optimization) arises
                                   from taking advantage of cycling
                                   opportunities whenever market conditions
                                   permit.

<PAGE>

CASCADE'S STORAGE MANAGEMENT AGREEMENT
NOVEMBER 17, 1999
PAGE 4 OF 4

Availability of TF-2 Transport:    November 1, 1999 through September 30, 2000
                                   (and possibly during October 2000 but only
                                   with Cascade's prior consent). During the
                                   period November 1, 1999 through March 31,
                                   2000, AETC's right to use TF-2 transport as
                                   agent for Cascade pursuant to this
                                   agreement will be subordinated to Cascade's
                                   right to transport up to 16,739 MMbtud.
                                   Cascade and AETC can mutually agree to
                                   allow AETC such use of TF-2 capacity. Use
                                   of such capacity by AETC will preclude any
                                   responsibility on AETC's part to reimburse
                                   Cascade for TF-2 transport costs other than
                                   applicable volumetric charges.

This letter constitutes the agreement between the parties for storage management
services as specified above.

Sincerely,


AMOCO ENERGY TRADING CORPORATION

By            V
         James A. Taylor
         Regional Vice President - West

Agreed to and accepted this 25th day of November, 1999

CASCADE NATURAL GAS COMPANY

By

Name:     KING OBERG
Title:    VICE PRESIDENT, GAS SUPPLY