NEWS RELEASE

September 18, 2008

UNION GAS LOWERS RATES

Declining Cost of Natural Gas Passed Onto Customers

September 18 – Union Gas announced today that the Ontario Energy Board has approved a decrease in the rates Union Gas charges its customers for natural gas, which will go into effect on October 1, 2008.  Residential customers who buy gas from the utility can expect a two percent decrease in their annual natural gas bill -- a $25 to $33 average annual savings, depending on location.

This rate change reflects a reduction in the company’s forecast cost of purchasing natural gas supplies looking forward over the next 12 months.

"The market price of natural gas varies in response to broad continental factors such as weather, inventory levels, supply availability and the price of oil," said Steve Baker, vice president, Union Gas.  "Domestic supply growth in North America combined with a mild summer have resulted in solid natural gas inventory levels as we head into the winter. This has resulted in downward pressure on natural gas prices."

In order to help customers save money on energy, Union Gas is offering a number of conservation programs this fall.  More information as well as conservation tips and tools are available on the company’s Web site at www.uniongas.com/energyefficiency.

About Union Gas
Union Gas is an integrated natural gas storage, transmission and distribution company serving about 1.3 million residential, commercial and industrial customers in more than 400 communities in northern, southwestern and eastern Ontario.  The company also provides storage and transportation services to other utilities and energy market participants in Ontario, Quebec and the United States. Union Gas is a Spectra Energy company.

*A typical residential customer in Union Gas’ service territory uses 2,600 cubic metres of natural gas a year for home and water heating. Savings are based on the annual bill for typical residential customers who buy their natural gas from the utility. The savings for customers who buy their gas supply from a marketer would depend on the contract rate.

CONTACT: Andrea Stass
Phone: (519) 436-5490