Oil Producers Endorse IPL Energy Terrace Pipeline Tolling Agreement, National Energy Board Concludes Facility Hearing in Record Time

Business Wire, April 16, 1998

CALGARY, ALBERTA--(BUSINESS WIRE)--April 16, 1998-- IPL Energy(TSE:IPL) (ME:IPL) (NASDAQ:IPPIF) (April 16, 1998)IPL Energy Inc. today announced that its wholly-owned subsidiary, Interprovincial Pipe Line Inc. of Edmonton, and affiliated Lakehead Pipe Line Partners, L.P., of Duluth, Minn. have reached a tolling agreement with the Canadian Association of Petroleum Producers for the proposed Terrace crude oil pipeline expansion project.

The Terrace expansion project is a phased program that ultimately will provide an additional 520,000 barrels per day of heavy crude oil capacity for Western Canadian producers seeking greater access to Midwest U.S. markets. The estimated investment for the project is Cdn. $840 million for the Canadian portion of the expansion, and U.S. $380 million for the United States portion.

The agreement provides for a fixed toll increase of Cdn. $0.05 per barrel, or approximately 3.5 percent, for transportation from Edmonton, Alta., to Chicago, Ill.

Details of the agreement were filed with Canada's National Energy Board as part of Interprovincial Pipe Line's application for the first phase of the Terrace expansion. The NEB hearing on the facility application concluded today after two days of deliberation. This is the shortest hearing time for a crude oil project of this magnitude and reflects significant industry support for the project. In addition to NEB approval, the tolling settlement is also subject to approval by the Federal Energy Regulatory Commission in the United States.

Pending NEB approval, the first phase of the Terrace project will provide an initial 95,000 barrels per day increase in capacity as early as January of next year, rising to 170,000 barrels per day by the end of 1999, at an investment of Cdn. $610 million in Canada and U.S. $138 million in the United States. Subsequent phases in the program will provide the balance of 350,000 barrels per day of added capacity.

Brian F. MacNeill, President and Chief Executive Officer of IPL Energy, said that the tolling agreement accompanying the Terrace program builds upon the company's pioneering agreement with shippers in 1995, the first liquids pipeline incentive tolling arrangement on the continent, as well as the "risk sharing" agreement developed with shippers for the SEP II expansion program in 1996.

"For a small increase in overall tolls, the Terrace tolling agreement provides shippers with toll stability and certainty. At the same time, the fixed toll increase provides IPL Energy with a favourable base return with the opportunity to enhance that return as throughput increases through construction of the additional phases," Mr. MacNeill said.

IPL Energy Inc. is a leader in energy delivery and services, operating the world's longest crude oil and liquids pipeline through the combined Interprovincial Pipe Line Inc. and Lakehead Pipe Line Partners, L.P., system and Canada's largest natural gas distribution company through The Consumers' Gas Company Ltd. which serves 1.4 million residential, commercial and industrial customers in south central and eastern Ontario, Quebec and Upper New York State. IPL Energy's common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "IPL". In the United States the shares trade on The NASDAQ National Market under "IPPIF".

CONTACT: IPL Energy Inc.

Frank Ternan, 403/231-3906 Business

403/231-4848 (FAX)

frank.ternan@iplenergy.com

www.iplenergy.com