AltaGas Utility Group Inc.

AltaGas Utility Group Inc.

August 14, 2007 18:08 ET

AltaGas Utility Group Inc. Announces Halifax Natural Gas Deliveries in 2007

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2007) - Patricia Newson, President and Chief Executive Officer of AltaGas Utility Group Inc. (Utility Group) (TSX:AUI) today announced that Nova Scotian natural gas will flow to Heritage Gas Limited (Heritage Gas) customers on the Halifax peninsula before the end of December. To date approximately 80 percent of downtown office buildings and the Capital District Health Authority's QEII Hospital facilities have committed to convert their equipment to natural gas.

"We want to congratulate the government, businesses and homeowners for their vision in making natural gas possible for the Halifax community," said Ray Ritcey, President of Heritage Gas. "We look forward to serving Halifax by providing a modern, environmentally friendly energy choice for today - and the years ahead."

"This is an investment in the environment, in the economy, and in the Halifax community," said Premier Rodney MacDonald. "Natural gas reduces our greenhouse gas emissions and diversifies our energy supply. It supports our commitment to sustainable prosperity in Nova Scotia."

Offering natural gas as a fuel choice provides competition and creates options for businesses and homeowners to maximize energy efficiency.

Heritage Gas has been installing gas lines on the Halifax side of the harbour since the beginning of August. In early September, drilling will begin on the main pipeline to connect natural gas to Halifax. The one-kilometre line will run 60 metres below the floor of the Halifax harbour, under the Halifax Shipyards in Halifax to Nivens Avenue in Dartmouth. The dig itself is expected to take nearly four months to complete. Heritage Gas expects to spend $30 million on the Halifax gas distribution system over the next couple of years.

Heritage Gas is a Nova Scotia-based company owned 24.9 percent by Utility Group, 25 percent by Silgascorp Inc and 50.1 percent by SaskEnergy Nova Scotia Holdings Ltd. Heritage Gas currently serves Dartmouth, Amherst and the Airport area with natural gas.

AltaGas Utility Group Inc. is a publicly traded company holding interests in AltaGas Utilities Inc., Heritage Gas Limited and Inuvik Gas Ltd. Combined, these regulated natural gas distribution businesses serve more than 65,000 customers in three areas of Canada through an infrastructure of nearly 20,000 kilometres of pipelines. Utility Group also holds an interest in the Ikhil Joint Venture which produces and supplies natural gas in Inuvik, Northwest Territories. Utility Group pursues opportunities to invest in infrastructure-based utility and related businesses with long-term, stable returns.

AltaGas Utility Group's 8.2 million common shares began trading on the Toronto Stock Exchange under the symbol AUI on November 17, 2005.

This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to Utility Group or an affiliate of Utility Group, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Utility Group's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in Utility Group's public disclosure documents. Many factors could cause Utility Group's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. Utility Group does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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