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SASKENERGY RATE DECREASE APPROVED

Oct 5, 2007

ATCO Midstream Expands in Saskatchewan

ATCO Midstream Ltd. is entering into an agreement to purchase a 50-percent interest in the Grimes Energy Joint Venture gas plant near the town of Kisbey as the company continues expansion into Saskatchewan.

ATCO Midstream will partner in the purchase of the plant with Bayhurst Energy Services Corporation, a subsidiary of SaskEnergy Incorporated. The purchase of the plant, licensed to process 2.5 million cubic feet of sour gas daily, includes approximately 22 kilometers of pipeline servicing four regional producers.

ATCO Midstream President Kevin Cumming said "This first-ever joint venture with SaskEnergy fits our growth strategies, complements our existing business, and brings together the skills of two solid companies."

Bayhurst Energy will be responsible for the operation of the Kisbey gas plant with ATCO Midstream providing both operational and marketing support. The gas will be delivered to SaskEnergy's transmission subsidiary, TransGas.

The full transfer of ownership and operation is expected to be in place by November 2007 with finalization of project specifics occurring over the next month.

The planned purchase is the second expansion of ATCO Midstream into Saskatchewan. Through the purchase of Wolcott Gas Processing Ltd., in May 2001, ATCO Midstream acquired an interest in the Nottingham gas plant and Wolstitmor gathering systems, and has since expanded the gathering system in southeastern Saskatchewan as well into Manitoba.

ATCO Midstream is part of the ATCO Group of companies. ATCO Group, an Alberta based worldwide organization of companies with assets of $7.8 billion and more than 7000 employees is comprised of three main business divisions: Power Generation; Utilities (natural gas and electricity transmission and distribution) and Global Enterprises, with companies active in industrial manufacturing, technology, logistics and energy services, industrials and technologies. More information on ATCO Midstream can be found on its website www.atcomidstream.com.

SaskEnergy, a Crown corporation, has been providing natural gas distribution, transmission and storage services to Saskatchewan for more than half a century. SaskEnergy has operated an associated gas facility in the Kindersley, Saskatchewan area since 1957. SaskEnergy delivers the benefits of safe, convenient and environmentally friendly natural gas to more than 332,000 residential, farm, commercial and industrial customers through its 80,000-kilometer distribution and transmission pipeline network. For more information about the company, visit SaskEnergy's web site at: www.saskenergy.com.

For further information, please call:

Kevin Cumming Doug Kelln
President President and Chief Executive Officer
ATCO Midstream SaskEnergy
(403) 513-3700 (306) 777-9901