PRESS RELEASE

For Immediate Release

Energy West Announces Earnings for the Second Quarter ended December 31, 2006 and Increases Quarterly Dividend

GREAT FALLS, Mont., February 13, 2007/PRNewswire-First Call/--ENERGY WEST, INCORPORATED (NASDAQ EWST - News), a natural gas, propane, and energy marketing company serving the Rocky Mountain states, today filed its Form 10-Q for the second quarter ended December 31, 2006. The Company reported consolidated net earnings for the quarter of $1,269,745, or $.43 per share, which is an improvement of approximately 14% when compared to the consolidated net earnings of $1,117,104, or $.36 per share, for the second quarter ended December 31, 2005.   The Company reported an increase in consolidated net earnings for the six months ended December 31, 2006 of approximately 117%, or a total of $1,075,237 ($.38 per share), as compared to consolidated net earnings of $495,531 ($.17 per share) for the six months ended December 31, 2005.

The Company also announces that the Board of Directors has increased to the quarterly dividend to $.14 per share for shareholders of record as of February 15, 2007, which will be payable on February 28, 2007.

David Cerotzke, the Company’s President and Chief Executive Officer, commented, “We are very pleased to announce another quarter of improved earnings led by our natural gas utilities and our marketing and production subsidiary, Energy West Resources.   The recently announced acquisitions of Frontier Utilities of North Carolina, Inc. and Penobscot Natural Gas Company, Inc. present exciting opportunities for continued growth while allowing us to stay within the focus of our core businesses.”

Stock Repurchase Program
The Company’s Board of Directors has authorized the repurchase of up to approximately 299,000 shares of the Company’s common stock, or 10% of shares currently outstanding.   The shares will be repurchased from time to time in open market transactions or privately negotiated transactions at the Company’s discretion, subject to market conditions and other factors and in accordance with Securities and Exchange Commission requirements.   As of February 5, 2007, the Company had 2,989,452 million shares of common stock outstanding.

“This authorization from the Board is an indication of the financial strength of Energy West and, with ongoing dividend payments, allows us to enhance the overall return to our shareholders,” commented David Cerotzke.

Termination of Preferred Stock Rights Plan
The Board also voted to terminate the Company’s s hare holder rights plan , commonly known as a “poison pill.”

“The Board believes that shareholders should have the final say on these issues,” said Richard Osborne, Chairman of the Board of Energy West.  “Our decision to terminate the share holder rights plan reflects the Board’s ongoing commitment to sound corporate governance.”

About Energy West
Energy West, Incorporated distributes and sells natural gas and propane to end-use residential, commercial, and industrial customers in the United States. It distributes approximately 6.4 billion cubic feet of natural gas to approximately 34,000 customers through regulated and unregulated utilities operating in and around Great Falls and West Yellowstone, in Montana, and Cody in Wyoming.   The company markets approximately 2.5 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming. It also has an ownership interest in approximately 163 natural gas producing wells and gas gathering assets. In addition, the company owns the Shoshone interstate and the Glacier gathering pipeline located in Montana and Wyoming. Energy West was incorporated in 1909 and is headquartered in Great Falls, Montana.

Safe Harbor Regarding Forward-Looking Statements
Energy West is including the following cautionary statement in the release to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of Energy West.  Forward-looking statements are all statements other than statements of historical fact, including without limitation those that are identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” and similar expressions.  Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed.  Factors that may affect forward-looking statements and the Company’s business generally include but are not limited risks associated with contracts accounted for as derivatives, changes in the utility regulatory environment, wholesale and retail competition, weather conditions, litigation risk and various other matters, many of which are beyond Energy West’s control, the risk factors and cautionary statements made in the Company’s public filings with the Securities and Exchange Commission, and other factors that the Company is currently unable to identify or quantify, but may exist in the future.  Energy West expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Energy West’s expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

Further, preparation of financial statements requires Energy West’s management to make significant estimates.  The deferred tax asset, valuation allowance and related extraordinary gain require a significant amount of judgment.  Under federal tax laws, the estimate is based on projected future tax deductions, future taxable income, estimated limitations, the valuation allowance, and other assumptions.  It is possible that this estimate could change and the change could be material.

For additional information or clarification respecting Energy West, please contact: James W. Garrett, President and Chief Operating Officer at 1-440-205-1987.

Our toll-free number is 1-800-570-5688. Our web address is www.energywest.com. Our address is P.O. Box 2229, Great Falls, MT 59403-2229.