Gaz Métro receives Régie de l'énergie's decision on 2008 rate application

    MONTREAL, Oct. 16 /CNW Telbec/ - Gaz Métro Limited Partnership
(TSX: GZM.UN, "Gaz Métro") announces that the Régie de l'énergie ("Régie")
rendered a decision on its rate application for the 2008 fiscal year for the
Quebec distribution activity.
    The Régie's decision accepted some of Gaz Métro's requests and not
    In its decision, the Régie chose to modify certain parameters of the
formula presently used to establish the rate of return allowed on Partners'
deemed common equity fixing it at 9.05% for the 2008 fiscal year, an increase
over the 8.91% rate of return the formula applied to date would have produced.
    However, the Régie did not retain the new model proposed by Gaz Métro as
the method for establishing the authorized rate of return. According to the
Régie, application of that model to regulated utilities has not been
sufficiently examined by other regulatory bodies to be used as the basis for
fixing a distributor's rate of return.
    The overall impact of the decision will be quantified in the updated
application that will be filed by Gaz Métro on October 23. The Régie will then
render its decision on the tariffs for the 2008 fiscal year.

    Gaz Métro Overview

    With more than $3.1 billion of assets and more than 1,500 employees in
Quebec, Gaz Métro is a leading Quebec energy company and one of Canada's
largest natural gas distributors. Gaz Métro serves about 167,000 customers in
Quebec through an underground pipeline network of almost 10,000 km.
    Through its wholly-owned subsidiary, NNEEC, Gaz Métro has been active in
New England's energy industry since 1986 and has nearly 300 employees there.
NNEEC includes Vermont Gas Systems, the sole gas distributor in Vermont, and
Green Mountain Power Corporation, the second largest electricity distributor
in that State.
    Through investments in wholly-owned subsidiaries or in partnerships with
other investors, Gaz Métro is active in natural gas transportation and storage
as well as energy services and water and waste water systems and fibre optic
networks. Gaz Métro also participates in various development projects in the
energy sector.

For further information:

For further information: Investors and Analysts: Caroline Warren,
Investor Relations, (514) 598-3324; Media: Frédéric Krikorian, Public and
Governmental Affairs, (514) 598-3656

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