Fortis to acquire Terasen Inc. from KMI

Pipeline & Gas Journal, April, 2007

Kinder Morgan, Inc. has entered into a definitive agreement to sell Terasen Inc. to Fortis Inc., a Canadian-based company with investments in regulated distribution utilities, for approximately C$3.7 billion, including cash and assumed debt.

Terasen Inc.'s principal assets include Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., comprising a large regulated distribution business that delivers natural gas and piped propane to approximately 900,000 customers in British Columbia. The transaction is subject to certain closing conditions and regulatory approvals and is expected to close in mid 2007. The sale does not include assets of Kinder Morgan Canada (formerly Terasen Pipelines), which is comprised primarily of refined products and crude oil pipelines that transport production from the Alberta oil sands.

"With the sale of Terasen Gas, KMI will be exiting the retail utility business, as we previously announced an agreement to sell our U.S. retail operations," said KMI Chairman and CEO Richard Kinder. "While Terasen Gas is a strong local distribution company that produces stable cash flow, our core business continues to be building and operating pipelines and terminals."