February 21, 2002

Viking-Kinsella Payment to Arrive in March

ATCO Gas Plan to Distribute Sale Proceeds Approved

(Edmonton, Alberta) - Throughout March, most ATCO Gas North customers will receive a cheque from ATCO Gas in the mail.

The one-time payment is each current customer's share of $405 million from the sale proceeds of the Viking-Kinsella natural gas producing properties. Payment will be made to current customers in Edmonton, Red Deer and all the northern communities served by ATCO Gas. As directed by the Alberta Energy and Utilities Board (AEUB), ATCO Gas will automatically provide payment to current customers as of March 2, 2002.

"We are pleased to be taking the final step in the sale of Viking-Kinsella," says Jerome Engler, Executive Vice-President, ATCO Gas. "Now that we have approval from our regulator, all that remains is to give our current North customers their share. The payment represents the future gas cost savings if ATCO gas had continued to own and operate Viking-Kinsella for gas supply."

The company will begin mailing the first cheques the first week of March separately from the customer's monthly statement, an automated cost-efficient process. Customers with pre-authorized payment arrangements will have their payment deposited directly into their bank account.

The payment to each customer is based on $3.325 per gigajoule, applied to annual consumption. The typical residence, consuming 150 gigajoules of natural gas annually, will receive approximately $500. The exact amount each customer receives depends on the annual consumption for the property, March's current charges as well as any arrears.

"ATCO Gas will continue to successfully own and operate a safe, reliable and competitively priced natural gas distribution system throughout the province, purchasing natural gas for our customers from an ample number of Alberta's natural gas producers," continues Engler.

The company's rates are regulated; ATCO Gas collects from customers only what it has paid to suppliers for natural gas.

ATCO Gas negotiated the Viking-Kinsella sale and disbursement plan with the North Core Committee, a group representing the company's large customers and special interest groups. Committee members include the City of Edmonton, Consumers Coalition of Alberta, University of Alberta, Federation of Alberta Gas Co-ops and Gas Alberta, Municipal Intervenors, Canadian Forest Products, the Assembly of First Nations Alberta Region and Public Institutional Consumers of Alberta.

ATCO Gas is a member of the ATCO Group of Companies. Based in Alberta, ATCO Gas is one of Canada's premier corporations with a worldwide organization of companies employing more than 6000 persons, engaged in Utilities, Power Generation, Logistics & Energy Services, Technologies and Industrials.

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