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June 2, 2003 - Heritage Gas Accepts Natural Gas Distribution Franchise

June 3, 2003

Heritage Gas Accepts Natural Gas
Distribution Franchise

Heritage Gas today announced it has accepted the natural gas distribution franchise to deliver service to six counties in Nova Scotia including the City of Halifax.

Heritage Gas - Partnership Fact Sheet

Heritage Gas Limited is the Nova Scotia company made up of SaskEnergy, Calgary-based AltaGas and Scotia Investments of Halifax. SaskEnergy is the majority shareholder in Heritage Gas with 50.1 per cent, Scotia Investments 25 per cent and AltaGas with 24.9 per cent.

The Nova Scotia Utility and Review Board (UARB) recommended Heritage Gas be given a 25-year full-class regulation franchise on February 7, 2003. The Government of Nova Scotia gave its approval of the recommendation on February 21, 2003.

"Heritage Gas partners have fifty years of experience in designing, building and operating safe and reliable natural gas distribution systems under our belts," said Ron Clark, President and Chief Executive Officer, SaskEnergy. "We look forward to working with communities across Nova Scotia to build the system that works best for Nova Scotia consumers."

Clark, who is also Chief Executive Officer of Heritage Gas, said Nova Scotians would be enjoying natural gas by the end of this year.

SaskEnergy's share of capital investment in the project's first year will be $4 million. In the first six years of development, Heritage plans to bring natural gas access to 20,000 homeowners and 6,500 businesses in Nova Scotia. In Saskatchewan, SaskEnergy's capital investment budget for 2003 will be $67 million to maintain or upgrade gas distribution and transmission facilities throughout the province.

"We are looking forward to expanding our geographical reach in Canada by bringing natural gas to the people of Nova Scotia." said David Cornhill, Chairman and Chief Executive Officer of AltaGas Services Inc. "This project fits with AltaGas' strategy of investing in infrastructure-based assets that provide long-term cash flows."

SaskEnergy and AltaGas currently have nearly 400,000 gas distribution customers in Alberta, Saskatchewan, Manitoba and the Northwest Territories.

"We see building the gas distribution system in Nova Scotia as a long-term, stable investment," said George Bishop, President, Scotia Investments Ltd. "One that will provide benefits for generations to come."

The new President of Heritage Gas will be Ray Ritcey of Halifax. The entire Heritage Gas plan submitted to the UARB is available on the company's web site at http://www.heritagegas.com/

For further information, please contact:

Dave Burdeniuk
Manager, Communications
Phone: (306) 777-9842

Heritage Gas - Partnership Fact Sheet

For over 50 years, SaskEnergy has safely operated one of North America's longest natural gas transmission and distribution networks. Through over 60,000 kilometres of distribution pipeline and its 13,500 kilometres of high pressure transmission network, SaskEnergy supplies and delivers natural gas to homes, farms, and commercial and industrial customers in 585 communities across Saskatchewan.

SaskEnergy has successfully provided cost-effective natural gas service to over 93 percent of customers within the service territory, an area of over 380,000 square kilometres or approximately seven times the size of the province of Nova Scotia. SaskEnergy has consolidated assets of over $1.2 billion and consolidated annual revenues of over $350 million. In the face of distance, geography, and a widely dispersed population, SaskEnergy continues to expand and operate one of the most extensive natural gas distribution systems in North America, while consistently providing customers with very competitive natural gas rates.

Scotia Investments Limited
Scotia Investments Limited, an investment holding company incorporated in 1945, is owned by the Jodrey family of Hantsport, Nova Scotia. The company has interests across Canada and the United States that encompass such diverse activities as paper, food processing and manufacturing, the floral industry, transportation, real estate development, environmental and waste treatment industries, metal finishing, specialized coatings and health care. Scotia Investments holds a major interest in Minas Basin Pulp and Power Company Limited, CKF Inc., Maritime Paper Products Limited, Annapolis Group Inc., High Liner Foods Inc., Extendicare Inc. and other operating companies.

This Nova Scotia family and company is no stranger to the energy industry. Roy A. Jodrey, the founder of the Scotia Investments Group of Companies, began building his first dam at White Rock on the Gaspereau River in the Annapolis Valley in 1917. With contractor Charlie Wright and apple king W. H. Chase, they founded the Avon River Power Company in 1921 and brought power to the Annapolis Valley. Minas Basin Pulp and Power Company Limited still operates dams on the St. Croix and Halfway Rivers which were originally built by R. A. Jodrey in the 1930s. The company partly supplies its own paperboard mill and CKF Inc. in Hantsport with their energy requirements.

AltaGas is Canada's only publicly-traded, pure play midstream energy company. AltaGas moves energy from its source to the end user, adding value through the process. AltaGas commenced operations on April 1, 1994 with twenty employees and $37,000 in assets. The company has grown to employ 458 individuals in three areas - natural gas gathering and processing, distribution, and energy services. AltaGas has over $700 million of assets. Today AltaGas is one of Canada's Top 500 companies in assets and revenue and one of Alberta's fastest growing companies.

AltaGas moves natural gas to the homes and businesses of end-users throughout Alberta and in the Town of Inuvik, NWT. AltaGas operates its natural gas distribution business through AltaGas Utilities Inc., and its one-third interest in Inuvik Gas Ltd. AltaGas Utilities serves more than 90 communities and rural areas throughout Alberta, delivering gas to about 58,000 customers. The company serves virtually 100 percent of the market in its service areas.