February 1, 2002

PAYMENT OF VIKING-KINSELLA SALE PROCEEDS DELAYED

No decision on ATCO Gas’s proposal for one-time payment.

(EDMONTON, Alberta) - Customers of ATCO Gas will not receive their one-time payment of the sale proceeds from the Viking-Kinsella producing properties beginning February 1, 2002.

"We negotiated the one-time payment with our customer representatives, but we do not have a decision from our regulator that will allow us to proceed. Therefore, we wish to advise our customers that without AEUB approval, we are unable to provide the payment anticipated to arrive in the mail this month," says Jerome Engler, Executive Vice-President, ATCO Gas.

On December 12, 2001, ATCO Gas requested approval of the Alberta Energy and Utilities Board (AEUB) to provide a one-time payment of the $405 million customer share of Viking-Kinsella sale proceeds to current North customers in February 2002.

Recently, the final proposed payment rate of $3.32 per gigajoule, was provided to the AEUB. The typical residential North customer consuming 150 gigajoules of natural gas annually would receive an estimated one-time payment of $499, less February’s charges and arrears.

Until the AEUB has issued its decision, ATCO Gas cannot proceed with implementing payment of Viking-Kinsella sale proceeds to its customers.

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