RKE Cap Rock Energy Corp

MIDLAND, Texas, March 14 /PRNewswire-FirstCall/ -- Cap Rock Energy Corporation (AMEX:RKE) today announced that William L. West has become Chief Executive Officer, effective March 10, 2006. Mr. West, who was recommended by David W. Pruitt to be his successor, was appointed President in December 2004. As previously announced, when David W. Pruitt announced his retirement as CEO in late 2005, Mr. West was named as his successor. Mr. Pruitt has served as CEO of the Company from its inception and served in the same capacity for the Company's predecessor since 1987. He is retiring as CEO after taking over the leadership of a small electric cooperative and leading it through some dramatic changes. During Mr. Pruitt's tenure, the Company acquired three other electric cooperatives, and changed from being a small electric cooperative to becoming the first electric cooperative in the United States to convert to a public stock company and the first electric company in over sixty years to go public. During this process, the Company paid out millions of dollars to its former customers who had equity in the Company while creating millions more in value for those who invested in the Company, including those former customers who chose to remain owners of the Company. Mr. Pruitt was a pioneer in creating successful and innovative management and control systems in the electric utility industry. As Mr. Pruitt's tenure concludes, the Company has just received shareholder approval of a transaction that will take the Company private and provide a significant premium on the stock price to most shareholders. Mr. Pruitt will remain Co-Chairman of the Board of Directors of the Company until the closing of the agreement and plan of share exchange between the Company and Cap Rock Holding Corporation which was approved by shareholders March 10, 2006. After such closing, Mr. Pruitt will serve on the Board of Directors of Cap Rock Holding Corporation and will also serve as a consultant and advisor to the Company. Mr. Pruitt stated, "I have been involved in the electric utility business for thirty-five years and with Cap Rock for twenty of those years. During my career with the Company, I have had the pleasure of working with the most progressive and informed Board of Directors that anyone could ever hope to work with. Through their willingness to do what is right and not necessarily what is popular at the time, we were able to build a great Company and reward those who have invested in our Company and its predecessor. It has been my honor and privilege during my tenure to work with the hardest working and most talented group of employees that I have ever been around. We tried hard to treat employees right and in return they have turned us into a first class service company that is, in my opinion, one of the best service companies in the United States. Any successes we have had have been because of this great group of employees and our Board. When I took this job twenty years ago, our rates were close to 30% higher than our competitors and as I retire as CEO, our residential rates are now cheaper than those same competitors. That is a compliment to all of our gang. While there is a sense of pride and success in this position of leadership, I am placing the Company in great hands. Will West has proven that he has what it takes to lead this Company in the right direction and to achieve success beyond my wildest dreams." Russell Jones, Co-Chairman of the Board stated, "When David started in this position twenty years ago, we had trouble keeping the lights on. David turned our company around and built it into an outstanding electric utility. That is a tribute not only to David's hard work but also to his leadership ability and the positive effect he has on those who work for him." "I am honored to be able to continue the legacy started by David Pruitt," stated William West. "David leaves me with a Company uniquely positioned to face the challenges and capitalize upon the exciting opportunities the industry currently presents, and I am looking forward to leading this great group of employees into the future." Cap Rock Energy supplies electricity to over 35,000 meters in counties throughout Texas. Its corporate office is located in Midland, Texas with service divisions in Stanton, Colorado City, Brady and Celeste. It also manages a municipal electric system in the City of Farmersville. Management believes certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current expectations, views and assumptions and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations, views and assumptions. The foregoing information should be read in conjunction with Cap Rock Energy's filings with the Securities and Exchange Commission, including, but not limited to, reports on forms 10-K and 10-Q. Cap Rock Energy Corporation does not intend to update or revise these "forward-looking statements" to reflect current or future events or circumstances. On November 4, 2005, Cap Rock Energy entered into an agreement and plan of share exchange with Cap Rock Holding Corporation. Subject to the terms and conditions set forth in the agreement, Cap Rock Holding Corporation will acquire all the outstanding shares of Cap Rock Energy common stock for $21.75 per share. For more information, please see Cap Rock Energy's public filings with the Securities and Exchange Commission, which are publicly available at http://www.sec.gov/ . DATASOURCE: Cap Rock Energy Corporation CONTACT: Ronnie Lyon, VP-General Counsel of Cap Rock Energy Corporation, +1-903-813-0377, or

Copyright