EPCOR provides information on short term investments

    EDMONTON, Aug. 24 /CNW/ - In response to current issues affecting the
commercial paper market, EPCOR Utilities Inc. ("EPCOR") wishes to provide
information on certain of its short term investments. Currently, EPCOR holds
asset backed commercial paper ("ABCP") investments of approximately
$122 million of which approximately $71 million is in third party ABCP which
is directly impacted by the current liquidity issues affecting that segment of
the commercial paper market. Of the $71 million, approximately $42 million
recently matured with no payment of principal or accrued interest. The
remaining $29 million is scheduled to mature in late August and early
September 2007.
    All of the trusts in which these third party ABCP investments are held
are rated R-1 (high) by DBRS, which is their highest rating for commercial
paper. DBRS has placed these trusts "Under Review with Developing
Implications" following an announcement on August 16, 2007 that a consortium
representing banks, asset providers and major investors had agreed in
principle to a long term proposal and interim agreement regarding third party
ABCP ("the Proposal"). Under the proposal the affected ABCP would be converted
into term floating rate notes maturing no earlier than the scheduled
termination dates of the underlying assets.
    EPCOR is monitoring the ABCP liquidity issue closely and assessing its
alternatives in respect of the Proposal.
    EPCOR continues to be in compliance with the financial covenants of its
credit facilities and publicly-issued debt and has sufficient credit
facilities to satisfy its financial obligations as they come due. Based on
current information, EPCOR does not expect there will be a material adverse
impact on its business as a result of this current ABCP liquidity issue.

    Certain information in this press release is forward-looking and related
to anticipated financial performance, events and strategies. When used in this
context, words such as "will", "anticipate", "believe", "plan", "intend",
"target", "expect" or similar words suggest future outcomes. By their nature,
such statements are subject to significant risks and uncertainties, which
could cause EPCOR's actual results and experience to be materially different
than the anticipated results. Such risks and uncertainties include, but are
not limited to, operating performance, commodity prices and volumes, load
settlement, regulatory and government decisions, weather and economic
conditions, competitive pressures, construction risks, obtaining financing and
the performance of partners, contractors and suppliers.
    Readers are cautioned not to place undue reliance on forward-looking
statements as actual results could differ materially from the plans,
expectations, estimates or intentions expressed in the forward-looking
statements. Except as required by law, EPCOR disclaims any intention and
assumes no obligation to update any forward-looking statement even if new
information becomes available, as a result of future events or for any other
    EPCOR Utilities Inc. builds, owns and operates power plants, electrical
transmission and distribution networks, water and wastewater treatment
facilities and infrastructure in Canada and the United States. EPCOR has been
named one of Canada's Top 100 employers for seven consecutive years, and is
headquartered in Edmonton, Alberta. EPCOR's web site is www.epcor.ca.

For further information:

For further information: Media inquiries: Tim le Riche, (780) 969-8238;
Shareholder and analyst inquiries: Randy Mah, (780) 412-4297 or toll free
(866) 896-4636

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