Gaz Métro inc. Société en commandite Gaz Métro. Gaz Métro Limited Partnership 12 mos ended For the year ended September 30

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1 Société en commandite Gaz Métro Rating Report Report Date: Cause September tarifaire 19, , R Gaz Métro inc. RATING Debt Rated Rating Action Rating Trend Commercial Paper Confirmed R-1 (low) Stable First Mortgage Bonds* Confirmed A Stable Press Release: April 5, 2007 Previous Report: March 16, 2005 Jade Freadrich/Adeola Adebayo / jfreadrich@dbrs.com / aadebayo@dbrs.com RATING HISTORY Current Commercial Paper R-1 (low) R-1 (low) R-1 (low) R-1 (low) R-1 (low) R-1 (low) R-1 (low) First Mortgage Bonds* A A A A A A A * Guaranteed by Gaz Métro Limited Partnership RATING UPDATE DBRS confirmed the ratings of Gaz Métro inc. (GMi) on April 5, 2007 based on the continued strong business profile and credit metrics of its principal operating entity Gaz Métro Limited Partnership (GMLP or the Partnership), which guarantees the First Mortgage Bonds and a secured credit facility that backs up the commercial paper. GMi is the general partner of the Partnership and serves as the financing entity for GMLP, and the funds that it raises are loaned to the Partnership on similar terms and conditions. This removed the company from Under Review with Developing Implications where it was placed November 1, 2006, as a result of the proposed change in tax law scheduled to take effect in RATING CONSIDERATIONS Strengths Core gas distribution companies operate in supportive regulatory environments, exhibit low business risk and provide financial stability Strong operating cash flow that finances capital expenditures and distributions Investments in pipelines and non-domestic operations diversify earnings base Strong sponsorship from Trencap shareholders, Enbridge and Gaz de France FINANCIAL INFORMATION Gaz Métro Limited Partnership 12 mos ended For the year ended September 30 GMLP s regulated gas distribution businesses remain the core component of business operations (86% of 2006 EBITDA) and provide stability of earnings and cash flow as the company seeks to grow via targeted acquisitions and development projects in its other businesses. GMLP continues to generate cash flow from operations that is sufficient to internally finance both its capital expenditures and distributions to GMi and public unitholders. Pending resolution of the tax issue as GMLP continues to operate in accordance with current business and financial strategies, DBRS expects this trend to continue over the medium term. (Continued on page 2) Challenges Earnings sensitivity to interest rates through approved ROEs Cash flow sensitivity to weather and economic cycles Relative pricing of competitive energy sources Operating challenges at PNGTS Consolidated June 30, ' EBITDA interest coverage (times) * Cash flow / CAPEX (times) Percent debt in capital structure 61.2% 60.8% 60.1% 58.3% 60.1% 60.7% Cash flow / Total debt 18.6% 19.5% 20.6% 23.9% 22.4% 22.9% Operating income ($ millions) Net income ($ millions) Cash flow from operations ($ millions) Approved total ROE for Québec gas distribution 9.57% 9.33% 11.64% 10.96% 10.34% 9.69% * EBITDA does not reflect 38.3% ownership of PNGTS. Authorized ROE for fiscal THE COMPANY Gaz Métro inc. (GMi or the Company) is the general partner of Gaz Métro Limited Partnership (GMLP or the Partnership) and currently owns 71% of the partnership units. GMi is indirectly owned by Trencap s.e.c. (50.4%), Enbridge Inc. (Enbridge) (32.1%) and Gaz de France (17.6%). The operations of GMLP include natural gas distribution in Québec and Vermont (86% of 2006 EBITDA); transportation (9%); storage (3%); energy services and other; and electricity distribution (since April 2007). Gas transportation operations include wholly owned Champion Pipeline, a 50% interest in Trans Québec & Maritimes Pipeline (TQM) and a 38.3% interest in Portland Natural Gas Transmission System (PNGTS). AUTHORIZED PAPER LIMIT $400 million Original : Gaz Métro - 8, Document 10 Energy DBRS (12 pages)

2 Gaz Métro inc. Page 2 RATINGS UPDATED (Continued from page 1) GMLP will evaluate strategies to mitigate the impact of any new taxes, within the context of maintaining the capital structure of its regulated utility business in accordance with regulatory approved levels. The confirmation of GMi s Commercial Paper rating is based on the credit strength of GMi, as well as the credit facility backing the commercial paper program which is guaranteed by GMLP. GMLP has experienced some weakness in earnings in the domestic gas distribution business over the last two years which remains sensitive to lower return on equity due to interest rates and volume throughputs. In addition, short-term profitability has been challenged by its 38.3% owned Portland Natural Gas Transmission System (PNGTS). As a result of earnings pressure, management reduced cash distributions paid by 9% in July 2006 in order to preserve the equity base of the gas distribution activity and the Partnership. This near-term weakness has been partially offset by completion of TransCanada Energy s 550MW Bécancour cogeneration plant and by interruptible sales to industrial customers. Representing the Partnership s largest customer, the new cogeneration facility will provide a benefit to both BASIS OF ANALYSIS GMi as it is structured today came into existence via a corporate reorganization in 1991 that also established the funding parameters that are still used. The Partnership assumed all of the obligations then outstanding under the First Mortgage Bonds with the assets of the Partnership continuing to secure outstanding obligations. The reorganization agreement also established the terms of the subordinated debt at GMi that is invested as equity into GMLP. Importantly, it established that failure to pay interest or principal would not cause either acceleration of that debt or earnings and cash flow as firm industrial deliveries have increased 42% year-to-date (YTD). The Partnership continues to explore ways to grow and diversify its operations by implementing its strategy to become an integrated energy provider. Strategic diversification should improve the Partnership s overall business profile, and both geographic and operational diversification benefits are expected from the acquisition of electric utility Green Mountain Power Corp. (Green Mountain) completed in April The Green Mountain acquisition is consistent with the company s business strategy to grow through targeted acquisitions. Although the acquisition has resulted in a temporary increase in leverage, DBRS notes that management of the company has stated that it expects to finance the acquisition with debt and units in proportions that will leave the financing structure at levels comparable with the past. At these levels, DBRS would expect the acquisition, after giving consideration to the incremental earnings and cash flow of the acquired entity, to have little net impact on those same credit metrics for GMLP. Other projects under consideration that could also provide growth include the Rabaska LNG terminal and the Seigneurie de Beaupré wind farm. a cross default to senior debt, thus resulting in the heavy equity treatment that is afforded that debt. GMi is the financing vehicle for GMLP with funds raised loaned to GMLP on similar terms and conditions as those imposed on GMi. Given the mirror like structure of the financing, the only substantive difference between the two entities is the subordinated debt at GMi and the guarantees that exist. DBRS s analysis will focus on the operations and credit of GMLP (see section below for a more complete description of operations).

3 Gaz Métro inc. Page 3 DESCRIPTION OF CORPORATE STRUCTURE Caisse de dépôt et placement du Québec (General Partner) Solidarity Fund QFL SNC-Lavalin Group Inc. BC Investment Management Corporation Régime des rentes du Mouvement Desjardins Régime de Retraite de l'université du Québec 51.1% 16.7% 11.1% 11.1% 8.3% 1.7% Enbridge Inc. Trencap s.e.c Gaz de France 32.1% 50.4% 17.6% Noverco Inc. 100% { Gaz Métro Inc. "GMi " (Québec, Canada) $707.8 million - subordinate intercompany debt (Noverco) Commercial paper rated R1 (low) $400 million secured credit facility $1.025 billion First Mortgage Bonds rated 'A' Public Unitholders Guarantee 71% of units (General Partner) 29% of units (Limited Partners) Gaz Métro Limited Partnership "GMLP" (Québec, Canada) 50% 99.99% 100% 49.99% TQM Pipeline & Company, Limited Partnership (Québec, Canada) $137.5 million First Mortgage Bonds rated A (low) Gaz Métro Plus Limited Partnership (Québec, Canada) Northern New England Energy Corporation (Vermont, USA) US$100 million Intragas Holding, Limited Partnership (Québec, Canada) 100% 100% 100% 79.99% Portland Natural Gas Transmission System (Maine, USA) 38.29% Northern New England Investment Company, Inc. (Vermont, USA) Green Mountain Power Corp. (Vermont, USA) US$112.4 million Vermont Gas Systems, Inc. (Vermont, USA) US$20.0 million notes Intragas Limited Partnership (Québec, Canada) 20% Notes: Consolidated long-term debt amounts outstanding for GMLP and GMi were $1.6 billion and $2.3 billion respectively as of June 30, GMLP s subsidiaries and joint ventures can borrow up to $88.2 million under term loan agreements.

4 Gaz Métro inc. Page 4 RATING CONSIDERATIONS Strengths (1) Regulated gas distribution and transportation operations account for almost all earnings and provide GMLP with significant long-term stability. Excluding Vermont Gas Systems (VGS) from reported segregated earnings, DBRS estimates that approximately 78% of EBITDA is derived solely from gas distribution operations in Québec. These domestic gas distribution operations are permitted to utilize deferral accounts that smooth the earnings impact of: a) weather-induced revenue fluctuations, and (b) interest rate fluctuations on floating rate debt, both of which are amortized and recovered in future rates over a five-year period. Note that while these deferral accounts smooth income, they do not smooth cash flow from operations. (2) GMLP continues to generate cash flow from operations that is sufficient to internally finance both its capital expenditures and distributions to its partners. DBRS expects this to continue over the medium- to long term, with credit metrics to remain generally consistent with historical levels with temporary variation due to acquisitions or major project developments. (3) GMLP continues to explore ways to diversify its operations in connection with its strategy to become an integrated energy provider. The acquisition of Green Mountain will provide geographic and operational diversification benefits. Also, the 50% interest in Intragas (acquired in December 2004) added underground natural gas storage capability to the Partnership s activities. (4) Construction of the 550MW Bécancour cogeneration plant was completed September This represents GMLP s biggest customer and should increase deliveries by 15% on an annual basis. Challenges (1) GMLP s earnings and cash flow are sensitive to interest rates through approved ROEs. A 25 basis point change in approved ROE equates to approximately a $2 million impact on earnings. (2) GMLP s cash flow is sensitive to changes in economic cycles on a medium-term basis and weather impacts cash flow on a short-term basis. The rate stabilization account mitigates weatherinduced fluctuations on income. Approximately 55% of gas volumes are delivered to industrial customers that are most sensitive to economic conditions. (3) Relative pricing of competitive energy sources impacts volume throughputs over the medium to longer term. Market penetration of natural gas in Québec is well below the national Canadian average resulting from the low cost of electricity in Québec. Gas distribution throughputs are somewhat volatile in conjunction with the tight competitive situation between natural gas, fuel oil, and electricity in Québec. The company continues to look for ways to distribute greater volumes of gas and has had recent success with interruptible volumes to industrial customers and has increased market penetration in new home construction. (4) PNGTS s earnings have been challenged by loss of two major customers and subsequent excess transportation capacity. A source of growth however is expected from the Rabaska project which is scheduled for completion in 2010 if the decision is made to proceed.

5 Gaz Métro inc. Page 5 EARNINGS AND OUTLOOK Gaz Métro Limited Partnership Consolidated 12 mos ended For the year ended September 30 (CAD millions) June 30, Gross margin * EBITDA Interest expense Income taxes Net Income Segmented EBITDA For the year ended September 30 (CAD millions) 2006 (%) Distribution 86% Transportation 9% Storage 3% Energy services & other 4% Non-allocated expenses & eliminations -3% (9.6) (8.7) (5.3) (3.7) (0.8) Total EBITDA 100% * Net of direct costs associated with the purchase of gas. EBITDA does not reflect 38.3% ownership of PNGTS. Reflects reported segmented results, which aggregates Québec and Vermont distribution. Excluding Vermont Gas Systems, DBRS estimates that approximately 78% of EBITDA is derived solely from Québec distribution operations. Summary Recent weakness in distribution net income was primarily the result of the reduced authorized ROE as a result of a lower interest rate environment, as well as reduced normalized throughput. Fiscal 2007 authorized ROE has been increased to 9.57% from 9.33% in Lower distribution throughputs resulted from higher natural gas prices which prompted customers (especially highvolume industrial and small commercial) to reduce consumption. The Partnership has worked to replace this volume with short-term interruptible volumes and has already begun to benefit from the start-up of the Bécancour cogeneration unit. Loss of two significant customers at PNGTS has negatively impacted transportation earnings but this volume has recently been partially replaced on a short-term basis. Outlook Over the medium term, the outlook for GMLP s earnings remains stable. Modest growth expected from the gas distribution business may be partially offset by short-term weakness in PNGTS. The penetration of natural gas in Québec compared to other provinces is low. The gas distribution segment will benefit from continuing penetration of the new residential construction sector and efforts to increase industrial gas sales on an interruptible basis. Domestic gas distribution may benefit from recently approved changes to the incentive return, as well as proposed changes in the 2008 rate case to the rate of return allowed on deemed equity to provide a better reflection of GMLP s business risk and market expectations. Bécancour represents GMLP s biggest customer and should increase deliveries by 15% on an annual basis. The acquisition of Green Mountain will provide geographic and operational diversification benefits to GMLP s gasdistribution operations in Québec, which is consistent with the strategy to become an integrated energy provider. TQM benefits from stable revenues as almost all revenues are under long-term contracts with TransCanada PipeLines Limited until 2018.

6 Gaz Métro inc. Page 6 Over the longer term, DBRS expects continued earnings stability, with potential growth from various projects currently being pursued, including the following: The Rabaska project, a liquefied natural gas terminal in the eastern part of Québec. FINANCIAL PROFILE GMLP intends to submit a joint bid with Boralex Inc. into Hydro-Québec s 2007 call for tender for the Seigneurie de Beaupré wind project. Gaz Métro Limited Partnership Consolidated Statement of Cash Flows 12 mos ended For the year ended September 30 ($ millions) June 30, ' Net income before extras Depreciation & amortization of def. charges Other (future income taxes, adj. of equity income) (0.9) (8.0) Cash flow from operations Capital expenditures (133.9) (153.9) (174.2) (124.4) (105.7) (95.0) Free cash flow before working capital changes Reduction in def. charges related to gas costs Rate stabilization (23.0) (37.1) (1.7) (50.5) Working capital changes (26.1) (9.8) (57.3) 12.6 Free cash flow before distributions Distributions to Partners (147.5) (156.3) (157.7) (154.3) (148.0) (141.4) Free cash flow after distributions (0.7) (12.5) Acquisitions & Divestitures (224.1) 14.6 (96.7) (31.9) (25.6) (4.4) Deferred charges (102.9) (37.0) (64.8) (65.9) (129.7) (12.0) Cash flows before financing (215.6) (23.2) (174.0) (35.6) (110.1) 46.1 Net debt financing (39.2) Net equity financing Net change in cash (3.0) (0.9) 6.9 Key Ratios: Cash flow to total debt 18.6% 19.5% 20.6% 23.9% 22.4% 22.9% Percent debt in capital structure 61.2% 60.8% 60.1% 58.3% 60.1% 60.7% Cash flow / CAPEX (times) EBIT interest coverage (times) * EBITDA interest coverage (times) * * EBIT and EBITDA do not reflect GMLP 's 38.3% ownership of P NGTS. Summary The predominance of regulated operations provides generally stable earnings and cash flow resulting in a stable financial profile and credit metrics. GMLP s cash flow from operations is typically strong enough to internally fund both capital expenditures and distributions. This was not the case in 2005 as a result of negative working capital adjustments and high capital expenditures capital expenditures were notably high as a result of pipeline expansions in Eastern Montreal and for the Bécancour cogeneration plant. Free cash flow is sensitive to fluctuations in weather and natural gas costs, however the regulatory mechanism provides for normalization in rates over future years. The recent impact of warmer than normal temperature is seen in the change in the rate stabilization account which will be recovered in future rates over five years. The acquisition of Green Mountain is relatively modest in comparison with GMLP s existing operations. A $50 million private placement of GMLP units was completed in October 2006 with SNC- Lavalin. The proceeds were used to pay down a portion of outstanding commercial paper and to maintain the equity of the gas distribution activity within regulatory parameters.

7 Gaz Métro inc. Page 7 Outlook Over the medium term, cash flow from operations will continue to remain relatively stable and exhibit moderate growth. In the near term, improvement is expected from: The Green Mountain acquisition is expected to provide accretive cash flow. Completion of the 550MW Bécancour cogeneration plant in September 2006 should increase gas deliveries 15% on an annual basis. Cash flow from operations is expected to remain sufficient to fund capital expenditures and distributions to partners. Capital expenditures over the medium term will increase as a result of various projects under development including the Rabaska LNG terminal and Seigneurie de Beaupré wind farm. Over the longer term, DBRS expects key financial ratios to remain in line with current levels. LONG-TERM DEBT MATURITIES AND BANK LINES Annual Capital Repayments * (CAD millions) F2007 F2008 F2009 F2010 F2011 First mortgage bonds Subordinated debt at GMi Subsidiaries debt Total *Capital required to meet maturities and sinking fund requirements, excluding redemptions before maturity at the Partnership s option. Represents TQM (GMLP 50% ownership) and Canadian dollar equivalencies of Green Mountain Power, NNEEC and VGS notes. $75 million of First Mortgage Bonds matured December 15, Summary GMi s debt maturities are reasonably spread out over the next five years with refinancing being straightforward, given the market and the company s strong rating. The acquisition of Green Mountain resulted in a temporary increase in leverage. DBRS notes that management of the company has stated that it expects to finance the acquisition with debt and units in proportions that will leave the financing structure at levels comparable with the past. At these levels, DBRS would expect the acquisition, after giving consideration to the incremental earnings and cash flow of the acquired entity, to have little net impact on credit metrics over the medium term. USD 100 million of debt was issued by Northern New England Energy Corp. (NNEEC) in June 2007 to reimburse part of the bridge loan put in place to fund the acquisition. USD 113 million of additional debt was assumed with the Green Mountain acquisition completed in April Green Mountain s debt maturities are spread out from F2018 to F2036. GMi has term credit facilities totalling $622.9 million and various operating credit facilities totalling $164.9 million. Borrowings under these facilities were $213.1 as of June 30, 2007, leaving the company with ample liquidity to fund its business. Debt proceeds at GMi are lent to GMLP on similar terms and conditions as those incurred at the parent. Notable credit facilities include: A $400 million five-year fully committed credit facility that is guaranteed by GMLP and backs GMi s commercial paper program. Maturity is currently December 2011 and is extendible each year. $100 million, unsecured 364-day renewable lines of credit. The Partnership s subsidiaries can borrow up to $88.2 million under term loan agreements. These loans are secured by the assets of the respective subsidiaries; however no recourse exists to the Partnership. The company was in compliance with its bond covenants as of June 30, 2007 and DBRS believes that GMi and GMLP will be able to operate their business without being restricted by the covenants. It is significant to note that GMLP is restricted from incurring funded debt greater than 65% of capitalization and GMi is restricted from paying distributions if the ratio of debt to capital were to increase to greater than 75%.

8 Gaz Métro inc. Page 8 REGULATION Québec Gas Distribution: operations are regulated by the Régie de l énergie (Régie) by a hybrid of cost of service/rate of return methodology and performance-based regulation (revenue cap). Deemed capital structure by the regulator is 38.5% common equity, 7.5% preferred shares and 54% debt. Authorized ROE is derived from a base ROE plus an incentive component. Base ROE is derived from: (1) the August Consensus Forecast yield for ten-year bonds plus the market spread between Government of Canada ten- and thirtyyear bond yields; (2) 75% of the variance in the August forecast rate of return on 30-year Government of Canada bonds. Fiscal 2007 authorized ROE is 9.57%, derived from a base ROE of 8.73% plus the incentive return of 0.84%. The gas costs are flowed through to customers with monthly price adjustments. Favourable regulatory support is evidenced by changes approved in April 2007 to the incentive return that will likely benefit GMLP. Additional changes to the rate of return allowed on deemed equity to provide a better reflection of GMLP s business risk and market expectations are proposed in the 2008 rate case. Vermont Gas and Electricity Distribution: VGS and Green Mountain are regulated by the Vermont Public Service Board (VPSB) on a compliant basis based on a cost of service/rate of return methodology. Temperature normalization reserve accounts are disallowed. New regulatory framework came into effect for VGS (October 2006) and Green Mountain (February 2007) which includes a price adjustment mechanism to reflect the cost of purchasing gas or electricity sold to customers. Canadian Gas Transportation: TQM is regulated by the National Energy Board (NEB) on a rate of return/cost of service basis. The allowed return on equity of 8.46% in 2007 (8.88% in 2006; 9.46% in 2005) is based on forecasted long-term Government of Canada bond yields. TQM is pursuing an increase in its deemed equity to 36%, which is in line with other Canadian pipelines regulated by the NEB. U.S. Gas Transportation: PNGTS gas transportation activities are regulated by the Federal Regulatory Energy Commission (FERC). The last rate adjustment has been effective since April 2002 and a new rate is expected in April The implicit ROE is currently 12.33%.

9 Gaz Métro inc. Page 9 DESCRIPTION OF OPERATIONS Gas Distribution: represents the core business and accounted for 86% of EBITDA in Excluding Vermont Gas Systems (VGS) from reported segregated earnings, DBRS estimates that approximately 78% of EBITDA is derived solely from gas distribution in Québec. The Partnership delivers approximately 97% of the natural gas consumed in Québec, serving approximately 167,000 customers and is one of the largest natural gas distributors in Canada. Vermont Gas Systems (VGS) is the sole gas distributor in Vermont with approximately 40,000 customers. Electric Distribution: represents a new line of business for GMLP. Green Mountain is a utility operating company that primarily transmits and distributes electricity in the state of Vermont, serving approximately 92,000 customers. Ancillary businesses include sales of: (1) electric power at wholesale in New England, and (2) operations services to other utilities in Vermont. Approximately 89% of the electricity Green Mountain distributes is purchased from others and the remaining 11% is obtained through ownership interests in generation facilities. The Partnership intends to submit a joint bid with Boralex Inc. into Hydro Quebéc s 2007 call for tender for the Seigneurie de Beaupré wind project. Gas Transportation: includes a 50% interest in the TQM pipeline, 100% of the Champion pipeline and a 38.3% interest in PNGTS. This segment reflected about 14% of assets at the end of September 2006 and contributed 15% of net income in fiscal year TQM operates a gas pipeline in Québec that connects upstream with TransCanada and downstream with PNGTS and Gaz Métro (see separate DBRS report dated February 27, 2007). The newly completed Lachenaie expansion project improves compression on TQM s existing system. This expansion provides natural gas to TransCanada s recently constructed Bécancour gas-fired power plant, with the power sold to Hydro Québec under a long-term contract. PNGTS s pipeline originates at the Québec border and extends to the suburbs of Boston. Over the medium- to long-term, throughput volumes on the PNGTS pipeline may increase as a result of increased demand for natural gas in the U.S. Northeast to support required capacity expansion in that region. Gas Storage: The Partnership acquired an ownership interest in Intragas in December 2004, adding underground natural gas storage capability to the Partnership s activities (4% of GMLP s assets). Energy Services and Other: includes nonregulated activities. Energy-related activities are focused on the maintenance and repair of residential, commercial and industrial equipment; the heating and cooling of large buildings; and the leasing of residential water heaters. Water-related activities are focused on municipal water and wastewater services. Fibre optic activities exist mainly in Montreal, Toronto and Ottawa through GMLP s 48.8% interest in MTO Telecom Inc.

10 Gaz Métro inc. Page 10 Consolidated Balance Sheet Gaz Métro Limited Partnership (CAD millions) As at As at September 30 As at As at September 30 Assets June 30 ' Liabilities & Equity June 30 ' Cash Bank debt Accounts receivable Payables & Accruals Inventories L.t.d. due in one year Prepaid expenses Current Liabilities Current Assets Deferred credits Net fixed assets 2, , ,881.3 Future income taxes Rate stabilization acct Financial instruments Deferred charges Long-term debt 1, , ,353.7 Investments and other Partners' equity 1, Financial instruments Intangible assets Total 3, , ,880.1 Total 3, , , mos ended For the year ended September 30 Balance Sheet Ratios June 30 ' Current ratio (times) Accumulated depreciation / Gross fixed assets n.a. 36.6% 35.8% 37.0% 34.3% 33.3% Percent debt in capital structure 61.2% 60.8% 60.1% 58.3% 60.1% 60.7% Payout Ratios Declared distributions / Cash avail. for distribution 58.3% 68.9% 62.6% 59.3% 56.9% 54.2% Distributions / Net income 97.8% 106.2% 102.1% 96.2% 96.5% 91.5% Cash Flow Ratios Cash flow / CAPEX (times) (Cash flow - Distributions) / CAPEX (times) Cash flow / Total debt 18.6% 19.5% 20.6% 23.9% 22.4% 22.9% Coverage Ratios EBIT interest coverage (times) * EBITDA interest coverage (times) * Profitability Ratios Operating margin 39.9% 40.2% 43.0% 43.8% 44.4% 43.9% Net margin 25.1% 25.5% 27.4% 28.9% 27.0% 27.8% Return on partners' equity 15.5% 15.8% 16.9% 18.2% 18.1% 18.9% Québec Gas Distribution Regulatory Statistics Approved base ROE 8.73% 8.95% 9.69% 9.45% 9.89% 9.67% Approved total ROE 9.57% 9.33% 11.64% 10.96% 10.34% 9.69% Deemed common equity 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% Rate base ($ millions) 1,814.5 f 1, , , , ,545.6 Gas Distribution Normalized Volumes (bcf) Firm industrial Interruptible industrial Commercial Residential * EBIT and EBITDA do not reflect 38.3% ownership of PNGTS. Level of distributions paid were reduced 9% in July DBRS defines 'Cash available for distribution' as Cash flow from operations less maintenance CAPEX, but before growth CAPEX and working capital changes. f = Fiscal 2007 forecast n.a. = not available

11 Gaz Métro inc. Page 11 Consolidated Balance Sheet Gaz Métro Inc. (CAD millions) As at As at September 30 As at As at September 30 Assets June 30 ' Liabilities & Equity June 30 ' Cash Bank debt Accounts receivable Payables & Accruals Inventories L.t.d. due in one year Prepaid expenses Current Liabilities Current Assets Future income taxes Deferred credits Net fixed assets 2, , ,881.3 Financial instruments Deferred charges Senior debt * 1, , ,123.0 Investments & other Subordinate debt 1, Financial instruments Minority interest Intangible assets Partners' equity Total 3, , ,039.7 Total 3, , , mos ended For the year ended September 30 Key Ratios: June 30, ' EBIT senior interest coverage (times) EBIT total interest coverage (times) Cash flow / CAPEX (times) Cash flow to senior debt * 21.3% 17.9% 18.3% 21.0% Cash flow to total debt 9.7% 9.5% 9.8% 10.8% Percent senior debt in capital structure * 37.9% 46.0% 45.7% 44.4% Percent total debt in capital structure 83.1% 86.6% 85.9% 86.3% * Senior debt includes First Mortgage Bonds and drawdown on the $400 million secured credit facility. June 30, 2007 secured credit facility drawdown is assumed to be the 2006 year-end amount of $38.7 million as this is not disclosed on an interim basis. Senior debt interest reflects DBRS' estimate as this is not publically disclosed by Gaz Métro. Reflects 100% debt treatment of subordinated debt issued by GMi and GMLP's subsidiaries. Gaz Metro Inc. Consolidated Statement of Cash Flows 12 mos ended For the year ended September 30 ($ millions) June 30, ' Net income before extras * Depreciation & amortization of def. charges Share of non-controlling Partners Other (future income taxes; adj. of equity income) 0.2 (6.2) (22.6) (2.8) Cash flow from operations Capital expenditures (133.9) (153.9) (174.2) (124.4) Free cash flow before working capital changes Reduction in def. charges related to gas costs Rate stabilization (23.0) (37.1) (1.7) 2.3 Working capital changes (23.8) (11.8) Free cash flow before distributions Distributions (76.2) (78.6) (79.5) (58.0) Free cash flow after distributions (16.1) 70.8 Acquisitions/Divestitures (224.1) 14.6 (96.7) (32.7) Other (incl. deferred charges) (102.9) (37.0) (64.8) (65.0) Cash flows before financing (220.6) (21.4) (177.6) (26.9) Net debt financing Net equity financing Net change in cash * Dilution gain of $16.7 million from the units issued to SNC-Lavalin realized during first quarter of 2007 has been treated as an extraordinary item.

12 Gaz Métro inc. Page 12 Note: All figures are in Canadian dollars unless otherwise noted. Copyright 2007, DBRS Limited, DBRS, Inc. and DBRS (Europe) Limited (collectively, DBRS). All rights reserved. The information upon which DBRS ratings and reports are based is obtained by DBRS from sources believed by DBRS to be accurate and reliable. DBRS does not perform any audit and does not independently verify the accuracy of the information provided to it. DBRS ratings, reports and any other information provided by DBRS are provided as is and without warranty of any kind. DBRS hereby disclaims any representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability, fitness for any particular purpose or non-infringement of any of such information. In no event shall DBRS or its directors, officers, employees, independent contractors, agents and representatives (collectively, DBRS Representatives) be liable (1) for any inaccuracy, delay, interruption in service, error or omission or for any resulting damages or (2) for any direct, indirect, incidental, special, compensatory or consequential damages with respect to any error (negligent or otherwise) or other circumstance or contingency within or outside the control of DBRS or any DBRS Representatives in connection with or related to obtaining, collecting, compiling, analyzing, interpreting, communicating, publishing or delivering any information. Ratings and other opinions issued by DBRS are, and must be construed solely as, statements of opinion and not statements of fact as to credit worthiness or recommendations to purchase, sell or hold any securities. DBRS receives compensation, ranging from US$1,000 to US$750,000 (or the applicable currency equivalent) from issuers, insurers, guarantors and/or underwriters of debt securities for assigning ratings. This publication may not be reproduced, retransmitted or distributed in any form without the prior written consent of DBRS.